H.B. NO.



H.D. 1


S.D. 1














     SECTION 1.  Ship repair and boat construction are critical maritime industries in the State.  Ship repair capability ensures the safe and timely operation of ships and barges supplying the State.  Without this capability, many ships are required to travel to the mainland for dry docking and repair, which reduces revenues for the State.  The ship repair industry provides the State with well-paying industrial and technical job opportunities in critical industrial services, including the repair of engines and generators, welding and metal fabrication, ventilation and air conditioning, and critical servicing of oil product transfer buoys.  However, ship repair companies in Hawaii have a significant competitive cost disadvantage with mainland and foreign ship repair entities because of higher labor and material shipping costs.  Sustaining and supporting a strong maritime repair industry are critical to the quality of life, prosperity, and security of the State.

     Hawaii's boatbuilding and ship repair industries consist of establishments that are primarily engaged in operating small shipyards, which are fixed facilities with dry docks and boat fabrication facilities and equipment.  Shipyard activities include ship construction; repair; conversion and alteration; production of prefabricated ships, boats, and barge sections; and other specialized maritime-related services.  Hawaii's boatbuilding and ship repair industries use local manufacturing and other trades outside the shipyard, providing vital jobs that are economically beneficial to Hawaii.

     The purpose of this Act is to enhance maritime productivity and workforce development by establishing a maritime industry grant program for qualified shipyards and maritime industry training providers.

     SECTION 2.  The Hawaii Revised Statutes is amended by adding a new chapter to title 13 to be appropriately designated and to read as follows:


Maritime Industry grant program

     §   -1  Definitions.  As used in this chapter:

     "Department" means the department of business, economic development, and tourism.

     "Maritime industry training provider" means an organization that provides training to individuals so that they may be employed in the future in a qualified shipyard.

     "Qualified shipyard" means a ship or boat building or repair facility in the State engaged in the building, construction, manufacture, repair, conversion, or alteration of ships or boats, including prefabricated ship and barge sections and heavy-duty inflatable rubber or plastic boats, comprised of not more than one thousand employees.

     §   -2  Maritime industry grant program; established.  There is established within the department a maritime industry grant program to be developed and administered by the department and under which the department shall award grants to qualified shipyards and maritime industry training providers for eligible projects.  The department shall accept applications for grants on forms prescribed and prepared by the department.  The department of transportation shall assist the department with the maritime industry grant program.

     §   -3  Eligibility for grants.  (a)  The department shall award grants for the maritime industry grant program only to qualified shipyards or maritime industry training providers that:

     (1)  Have applied for or received all applicable licenses or permits;

     (2)  Comply with all applicable federal, state, and local laws, rules, ordinances, and policies, including federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, or disability;

     (3)  Agree not to use state funds for entertainment or lobbying activities;

     (4)  Allow the department, legislative committees and their staff, and the auditor full access to grantee records, files, and other related documents and information for purposes of monitoring, measuring the effectiveness of, and ensuring the proper expenditure of the grant; and

     (5)  Are incorporated under the laws of the State.

No grant shall be awarded to a qualified shipyard or maritime industry training provider that has been in operation for less than ten years.

     (b)  Projects eligible to receive grants from the maritime industry grant program may include workforce development and training projects to improve employee skills in the maritime industry.

     (c)  A grant shall not exceed $         in any year, and a qualified shipyard or maritime industry training provider shall be awarded only one grant in any given year.

     §   -4  Reports.  The department shall submit a report to the legislature no later than twenty days prior to the convening of the regular session of 2018, and each regular session thereafter held in an even-numbered year.  The report shall include:

     (1)  The total number of grant applications received;

     (2)  The total number of grants awarded;

     (3)  The actual economic and workforce development benefits realized from the awarding of each grant;

     (4)  The total amount of money awarded for each grant; and

     (5)  Any other information about the maritime industry grant program the department deems necessary.

     §   -5  Rules.  The department shall adopt rules, pursuant to chapter 91, to implement this chapter.

     §   -6  Exemption from chapters 42F, 103D, and 103F.  Chapters 42F, 103D, and 103F shall not apply to the grants made pursuant to this chapter.  All grants shall be made in accordance with standards and conditions specified in section    -3.

     §   -7  Maritime industry grant program appropriations.  Moneys appropriated for the maritime industry grant program may be used to pay for the cost of administering, operating, and marketing the grant program, as determined by the director of business, economic development, and tourism."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $         or so much thereof as may be necessary for fiscal year 2017-2018 and the same sum or so much thereof as may be necessary for fiscal year 2018-2019 for the establishment and administration of the maritime industry grant program.

     The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

     SECTION 4.  This Act shall take effect on January 7, 2059.



Report Title:

Workforce Development; Maritime Industry Grant Program; Appropriation



Establishes within the Department of Business, Economic Development, and Tourism the Maritime Industry Grant Program to enhance maritime productivity and workforce development.  Takes effect 1/7/2059.  (SD1)




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