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HB1614
HOUSE OF REPRESENTATIVES
H.B. NO.
1614
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to economic development
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1.
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The legislature finds that the Hawaii
technology development corporation, established in 1983, serves as the State's
lead agency for supporting the growth and diversification of the technology,
innovation, and manufacturing sectors in the State.
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Over the past four decades, the corporation
has advanced statewide initiatives that have helped small businesses and
entrepreneurs expand into global markets, supported the development of clean
and renewable energy technologies, and strengthened the manufacturing and
innovation ecosystem in the State through programs such as the Hawai
ʻ
i small business
innovation research program, the manufacturing assistance program and the
accelerator program.
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The
legislature further finds that the corporation has played a critical role in
positioning innovation and technology as key pillars of the State's economic
development strategy.
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Through
partnerships with federal agencies, universities, and local businesses, the
corporation has helped attract federal investment, foster workforce
development, and cultivate high-growth industries that contribute to long-term
job creation and the State's economic resilience.
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The
legislature, however, additionally finds many federal grants require state
matching funds, often ranging from one-to-one to one-to-five ratios between
state and federal contributions.
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The existing
process securing these matching funds is not aligned with federal grant
timelines, forcing state agencies to seek emergency or ad hoc appropriations
after federal awards are announced.
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This
misalignment reduces the State's competitiveness and risks forfeiting millions
in potential federal dollars that could support the State's economic
diversification goals.
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The
legislature further finds that consistent and predictable state support is
essential for the corporation to continue fulfilling its mission as an economic
driver.
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By providing access to timely
matching funds, the legislature can ensure that the State remains competitive
in securing federal awards that amplify local investment, support small
businesses, and advance the goals of a diversified and innovation-based
economy.
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Furthermore,
the legislature finds that the establishment of a revolving fund will ensure
that the corporation has timely access to matching funds when applying for and
administering eligible federal grants.
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The
fund shall only be allocated if the corporation successfully secures a federal
award that requires a state match, thereby safeguarding state resources while
enhancing the State's ability to leverage federal investment.
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Accordingly,
the purpose of this Act is to provide a dedicated source of funds, through the
establishment of a revolving fund, to be used and administered by the Hawaii
technology development corporation to finance the State's matching
contributions required by federal grants supporting innovation, technology,
research, and manufacturing initiatives.
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SECTION
2.
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Chapter 206M, Hawaii Revised
Statutes, is amended by adding a new section to be appropriately designated and
to read as follows:
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"
�206M-
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Hawaii technology development corporation
revolving fund.
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(a)
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There is established in the state treasury the Hawaii technology
development corporation revolving fund to be administered by the development
corporation.
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(b)
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The following shall be deposited into the Hawaii technology development
corporation revolving fund:
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(1)
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Appropriations made by the legislature to
the revolving fund;
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(2)
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Transfers from other funds as authorized by
law;
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(3)
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Federal funds received by the corporation
as part of grant awards;
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(4)
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Repayments or reimbursements associated
with prior grant activities; and
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(5)
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Any interest earned on the revolving fund
balance.
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(c)
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Moneys in the Hawaii technology development
corporation revolving fund shall be used for the following purposes:
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(1)
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To provide state matching funds for federal
grants awarded to the development corporation that require a state contribution
as a condition of the award;
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(2)
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To cover administrative costs directly
associated with the management of the grants or the revolving fund; and
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(3)
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To support related activities approved by
the board that are necessary to fulfill federal grant obligations.
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(d)
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Moneys in the revolving fund shall not lapse
at the end of any fiscal year and shall remain available for expenditure until
the conclusion of the federal grant contract or until the contract is otherwise
terminated in accordance with federal and state law.
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(e)
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The development corporation shall submit an
annual report to the legislature no later than twenty days prior to the
convening of each regular session, beginning with the regular session of
2027.
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The report shall include:
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(1)
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The balance of the revolving fund;
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(2)
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A list of federal grant applications and
awards requiring matching funds;
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(3)
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The amount of state moneys used as a match;
and
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(4)
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The outcomes and economic impact of each
federally matched project.
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SECTION
3.
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There is appropriated out of the
general revenues of the State of Hawaii the sum of $10,000,000 or so much
thereof as may be necessary for fiscal year 2026-2027 to be deposited into the
Hawaii technology development corporation revolving fund established by this
Act.
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SECTION
4
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There
is appropriated out of the Hawaii technology development corporation revolving
fund the sum of $10,000,000 or so much thereof as may be necessary for fiscal
year 2026-2027 for the purposes of the Hawaii technology development
corporation revolving fund.
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The sum appropriated shall be expended by
the Hawaii technology development corporation for the purposes of this Act.
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SECTION 5.
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Notwithstanding any other law to the
contrary, the moneys appropriated by this Act shall not be allocated or
expended unless the Hawaii technology development corporation has been formally
awarded a federal grant requiring a state match.
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Upon notice of a federal grant award to the Hawaii
technology development corporation requiring a state match, the director of
finance shall transfer from the general fund to the Hawaii technology
development corporation revolving fund an amount not to exceed the matching
requirement, up to the available balance authorized by this Act.
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If the Hawaii
technology development corporation does not receive a qualifying federal award
during the fiscal period, no allocation shall be made.
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SECTION 6.
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New statutory material is underscored.
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SECTION 7.
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This Act shall take effect on July 1, 2026.
INTRODUCED BY:
_____________________________
Report Title:
HTDC;
Hawaii Technology Development Corporation Revolving Fund; Federal Grants;
Appropriation
Description:
Establishes
the Hawaii Technology Development Corporation Revolving Fund for the purpose of
financing the State's matching contributions required by federal grants.
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Appropriates funds.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.