Strategic Development Programs

HRS div. 1, tit. 13, ch. 206M, pt. V

in effect

HRS §206M-63 Hydrogen investment special fund

206M-63. Hydrogen investment special fund (a) There shall be established the hydrogen investment special fund, into which shall be deposited: (1) Appropriations made by the legislature to the fund; (2) All contributions from public or private partners; (3) All interest earned on or accrued to moneys deposited in the special fund; and (4) Any other moneys made available to the special fund from other sources. (b) Moneys in the fund shall be expended by the development corporation: (1) To provide seed capital for and venture capital investments in private sector and federal projects for research, development, testing, and implementation of the Hawaii renewable hydrogen program, as set forth in section 196-10; and (2) For any other purpose deemed necessary to carry out the purposes of section 196-10. [L 2019, c 56, pt of §2]

HRS §206M-64 Contracts for services necessary for management and operation of the strategic development programs

206M-64. Contracts for services necessary for management and operation of the strategic development programs The development corporation may contract with others, public or private, for the provision of all or a portion of the services necessary for the management and operation of the strategic development programs. The development corporation may use all appropriations, grants, contractual reimbursements, and all other funds not appropriated for a designated purpose to pay for the proper general expenses and to carry out the purposes of the strategic development programs. [L 2019, c 56, pt of §2]

HRS §206M-66 Business and industry evaluation and priorities for job opportunity and economic development

206M-66. Business and industry evaluation and priorities for job opportunity and economic development The development corporation shall develop procedures to set priorities as to which types of businesses and industries are most likely to provide significant opportunities for economic development and diversification in the State, consistent with the purposes of this subpart. This evaluation shall take into account the guidelines provided by the state plan for economic development. Based on these findings, the development corporation shall establish targets by which the operations and programs of the development corporation under this part shall be guided. [L 2019, c 56, pt of §2]

HRS §206M-69 Private sector financial support

206M-69. Private sector financial support Significant private sector financial support shall be associated with any economic development project for which the development corporation provides assistance under this part. L 2019, c 56, pt of §2

HRS §206M-70 Limitations on debt owed to the development corporation

206M-70. Limitations on debt owed to the development corporation Not more than $5,000,000 in financial assistance, excluding rights and royalties under a venture capital agreement, shall be provided to any one enterprise at any time under this part. The direct investments of the development corporation shall not exceed five per cent of the assets of the development corporation, excluding rights and royalties under a venture capital agreement; provided that by a two-thirds vote of the board, this amount may be increased to a limit of twenty-five per cent of the total assets of the development corporation. [L 2019, c 56, pt of §2]

HRS §206M-71 Limitation on liability

206M-71. Limitation on liability Chapters 661 and 662 or any other law to the contrary notwithstanding, nothing in this part shall create an obligation, debt, claim, cause of action, claim for relief, charge, or any other liability of any kind whatsoever in favor of any person or entity, without regard to whether that person or entity receives any benefits under this part, against the State or its officers and employees. The State and its officers and employees shall not be liable for the results of any investment, purchase of securities, loan, or other assistance provided pursuant to this part. Nothing in this part shall be construed as authorizing any claim against the development corporation in excess of any note, loan, or other specific indebtedness incurred by the development corporation or in excess of any insurance policy acquired for the development corporation or its employees. [L 2019, c 56, pt of §2]

HRS §206M-72 HI growth initiative; report to legislature

206M-72. HI growth initiative; report to legislature The development corporation shall submit an annual report to the legislature no later than twenty days prior to the convening of a regular session on the specific annual outcome achieved through the activities and expenditures of the HI growth initiative. [L 2019, c 56, pt of §2]

HRS §206M-74 Establishment

206M-74. Establishment The development corporation shall establish a program for seed capital assistance. L 2019, c 56, pt of §2

HRS §206M-75 Seed capital investments

206M-75. Seed capital investments Subject to this subpart, the development corporation may invest in: (1) A certified development company under sections 501 to 503 of the Small Business Investment Act of 1958 (15 U.S.C. 695 to 697) and the regulations adopted under those sections; (2) A small business investment company under the Small Business Investment Act (15 U.S.C. 631 to 634, 636 to 649) and the regulations adopted under those sections; (3) A minority enterprise small business investment corporation or equivalent venture capital corporation; (4) A similar entity that may leverage its capital under a federal program; or (5) A seed capital fund or partnership. [L 2019, c 56, pt of §2]

HRS §206M-76 Purposes and terms of investments

206M-76. Purposes and terms of investments (a) Investments may be used for any purpose consistent with the purposes and objectives of this part, including but not limited to: (1) Developing a working prototype; (2) Preparing a development plan; (3) Performing an initial market analysis; (4) Organizing a management team; and (5) Any other purpose reasonably related to an economic development project. (b) Investments may be made on such terms and conditions as the development corporation shall determine to be reasonable, appropriate, and consistent with the purposes and objectives of this part. [L 2019, c 56, pt of §2]

HRS §206M-77 Establishment

206M-77. Establishment The development corporation shall establish a program for venture capital. L 2019, c 56, pt of §2

HRS §206M-78 Venture capital investments

206M-78. Venture capital investments Subject to this subpart, the development corporation may invest in: (1) A certified development company under sections 501 to 503 of the Small Business Investment Act of 1958 (15 U.S.C. 695 to 697) and the regulations adopted under those sections; (2) A small business investment company under the Small Business Investment Act (15 U.S.C. 631 to 634, 636 to 649) and the regulations adopted under those sections; (3) A minority enterprise small business investment corporation or equivalent venture capital corporation; (4) A similar entity that may leverage its capital under a federal program; or (5) A venture capital fund or partnership. [L 2019, c 56, pt of §2]

HRS §206M-80 Establishment

206M-80. Establishment The development corporation shall establish a program for capital access. L 2019, c 56, pt of §2

HRS §206M-81 Financial assistance

206M-81. Financial assistance The development corporation, through the program for capital access, may: (1) Procure insurance, a guarantee, or a letter of credit from any source for all or a part of a loan, debenture, or lease of others, public or private, or a revenue bond issue of the State or other entity or authority authorized by law to issue revenue bonds; and (2) Procure insurance, a guarantee, or a letter of credit for either a single loan, debenture, or lease or for any combination of loans, debentures, or leases, or a single revenue bond issue or for all or a part of any combination of revenue bond issues. [L 2019, c 56, pt of §2]

HRS §206M-82 Purposes and priorities required in the procuring of insurance, loan guarantees, or letters of credit

206M-82. Purposes and priorities required in the procuring of insurance, loan guarantees, or letters of credit (a) Insurance, guarantees, or letters of credit procured pursuant to section 206M-81 shall be procured only for economic development projects within the State that are consistent with the purposes and objectives of this part. (b) The development corporation shall give paramount priority in procuring insurance, guarantees, and letters of credit to economic development projects that have the greatest potential for creating new jobs or retaining current jobs within the State. [L 2019, c 56, pt of §2]

HRS §206M-83 Conditions for procuring of insurance, loan guarantees, or letters of credit

206M-83. Conditions for procuring of insurance, loan guarantees, or letters of credit (a) Insurance, guarantees, or letters of credit shall not be procured pursuant to section 206M-81 unless the development corporation is assured that the loans, debentures, or leases insured, or guaranteed, or for which letters of credit are issued, shall be used to assist economic development projects that also have significant private sector financial support. (b) Insurance, guarantees, or letters of credit may be procured on such terms and conditions as the development corporation, in its sole discretion, shall determine to be reasonable, appropriate, and consistent with the purposes and objectives of this part. (c) The development corporation shall charge the lender or the borrower, or both, a fee or premium for procuring loan, debenture, or lease insurance, guarantee, or a letter of credit. Rules for premiums or fees shall be established by the corporation. [L 2019, c 56, pt of §2]

HRS §206M-84 Program for capital access participation agreements

206M-84. Program for capital access participation agreements The development corporation shall enter into agreements with lenders for participation in the program for capital access that shall include but not be limited to: (1) Authorization for the lender to determine, collect, and transmit to the development corporation a fee or premium charge within a specified range established consistent with the purposes and objectives of the development corporation; (2) Specification of whether the premium charge shall be paid by the lender, the borrower, the development corporation, or by a combination thereof in specified proportions; (3) The procedure by which a lender may make a claim upon the development corporation upon default by the borrower, and the conditions under which a claim may be made; and (4) The maximum amount of claims a lender may make upon the development corporation, which amount may be equal to or less than the proportion of the total premiums contributed by the development corporation. [L 2019, c 56, pt of §2]

HRS §206M-85 Establishment of special funds to secure loan insurance obligations; source of funds

206M-85. Establishment of special funds to secure loan insurance obligations; source of funds The development corporation may establish a special fund or funds for capital access into which fees or premiums collected by the development corporation are deposited. L 2019, c 56, pt of §2

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0206M/HRS_0206M-.htmFetched: 11/10/2026