Report Title:

Hawaii Strategic Dev. Corp.; Venture Capital; Appropriation

Description:

Appropriates funds to the Hawaii strategic development corporation revolving fund for increased investment in Hawaii's venture capital activity.

THE SENATE

S.B. NO.

1648

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

making an appropriation for the hawaii strategic development corporation.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the development of technology businesses in Hawaii depends on the availability of venture capital. Venture capital funding is typically provided to companies with proven concepts as opposed to very early stage start-up companies. Over the last decade, the Hawaii strategic development corporation (HSDC) has provided funds to venture capital firms who have, in turn, invested in more than fifty companies in Hawaii. A direct result of which was an increase economic development and diversity in Hawaii.

The legislature further finds that the success of the HSDC further evidences the need to support programs that create venture capital opportunities within the State. The success of Hawaii's companies should not have to depend on investments from mainland venture capital firms.

For Hawaii's innovative companies involved in globally competitive industries such as technology, agriculture, and biotechnology, their survival, growth, and success largely depends upon the availability of venture capital in Hawaii. The new University of Hawaii medical school and biomedical research facilities will surely produce new products and services and spawn new companies. The availability of additional venture funding would support their successful commercialization, and strengthen the biotechnology industry and the Hawaii economy as a whole.

The purpose of this Act is to appropriate funds to the Hawaii strategic development corporation revolving fund to support HSDC's venture capital program.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $50,000,000, or so much thereof as may be necessary for fiscal year 2003-2004, for deposit into the Hawaii strategic development corporation revolving fund to be utilized for increased investment in Hawaii venture capital activity.

SECTION 3. The sum appropriated shall be expended by the Hawaii strategic development corporation for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

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