Report Title:

Hawaii Strategic Development Corporation

Description:

Repeals a section of Act 178, SLH 2003 which eliminates the Hawaii Strategic Development Corporation Revolving Fund to allow continued investment activity by the Hawaii Strategic Development Corporation. (SD1)

THE SENATE

S.B. NO.

2866

TWENTY-SECOND LEGISLATURE, 2004

S.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE HAWAII STRATEGIC DEVELOPMENT CORPORATION.

 

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

SECTION 1. The legislature finds that Hawaii's emerging growth companies continue to face a shortage of available venture capital sources in Hawaii. The lack of equity financing stifles their growth and the State's economic development. The Hawaii strategic development corporation has been instrumental in developing a venture capital industry to support new technology growth and needs to continue to provide equity capital for companies to help to diversify Hawaii's economy.

Act 178, Session Laws of Hawaii 2003, repeals the Hawaii strategic development corporation revolving fund on July 1, 2004. The purpose of this Act is to repeal that section of Act 178 which would repeal the Hawaii strategic development corporation revolving fund, in order to allow continued investment activity by the Hawaii strategic development corporation.

SECTION 2. Act 178, Session Laws of Hawaii 2003, is amended by amending section 66 to read as follows:

"SECTION 66. This Act shall take effect on July 1, 2003, provided that:

(1) Sections 1, 2, 3, 4, 5, and 6 shall take effect on June 29, 2003;

(2) Sections 9, 10, 11, 12, 13, 14, 15, and 16 shall take effect on June 30, 2003; and

(3) [Sections] Section 7 [and 8] shall take effect on July 1, 2004; provided further that any remaining balances in the Hawaii capital loan revolving fund [and the Hawaii strategic development corporation revolving fund] shall lapse to the general fund."

SECTION 3. Act 178, Session Laws of Hawaii 2003, is amended by repealing section 8.

["SECTION 8. Section 211F-5, Hawaii Revised Statutes, is repealed."]

SECTION 4. There is appropriated out of the Hawaii strategic development corporation revolving fund the sum of $20,000,000, or so much thereof as may be necessary for fiscal year 2004-2005, for the operating expenses of this fund, and to carry out the purposes of the Hawaii strategic development corporation as described in chapter 211F, Hawaii Revised Statutes. The sum appropriated shall be expended by the department of business, economic development, and tourism.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on June 29, 2004.