| 47 | | - | SECTION 1. The purpose of this Act is to reclassify, repeal, or abolish various non-general funds, including accounts of the department of business, economic development, and tourism pursuant to the recommendations made by the auditor in auditor's report no. 20-01 and to transfer the unencumbered balances to the general fund. SECTION 2. Section 206E-6, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows: "(g) All sums collected under this section shall be deposited in the Hawaii community development [revolving] special fund established by section 206E-16; except that notwithstanding section 206E-16, all moneys collected on account of assessments and interest thereon for any specific public facilities financed by the issuance of bonds shall be set apart in a separate special fund and applied solely to the payment of the principal and interest on these bonds, the cost of administering, operating, and maintaining the program, the establishment of reserves, and other purposes as may be authorized in the proceedings providing for the issuance of the bonds. If any surplus remains in any special fund after the payment of the bonds chargeable against [such] that fund, it shall be credited to and become a part of the Hawaii community development [revolving] special fund. Moneys in the Hawaii community development [revolving] special fund may be used to make up any deficiencies in the special fund." SECTION 3. Section 206E-16, Hawaii Revised Statutes, is amended to read as follows: "[[]§206E-16[]] Hawaii community development [revolving] special fund. There is created the Hawaii community development [revolving] special fund into which all receipts and revenues of the authority shall be deposited. Proceeds from the fund shall be used for the purposes of this chapter." SECTION 4. Section 206E-16.5, Hawaii Revised Statutes, is amended to read as follows: "[[]§206E-16.5[]] Expenditures of [revolving] special funds under the authority exempt from appropriation and allotment. Except as to administrative expenditures, and except as otherwise provided by law, expenditures from any [revolving] special fund administered by the authority may be made by the authority without appropriation or allotment of the legislature; provided that no expenditure shall be made from and no obligation shall be incurred against any [revolving] special fund in excess of the amount standing to the credit of the fund or for any purpose for which the fund may not lawfully be expended. Nothing in sections 37-31 to 37-41 shall require the proceeds of any [revolving] special fund administered by the authority to be reappropriated annually." SECTION 5. Section 206E-184, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) In addition to the conditions and terms set forth in this part, any special facility lease entered into by the authority shall at least contain provisions obligating the other person to the special facility lease: (1) To pay to the authority during the initial term of the special facility lease, whether the special facility is capable of being used or occupied or is being used or occupied by the other person, a rental or rentals at the time or times and in the amount or amounts that will be sufficient: (A) To pay the principal and interest on all special facility revenue bonds issued for the special facility; (B) To establish or maintain any reserves for these payments; and (C) To pay all fees and expenses of the trustees, paying agents, transfer agents, and other fiscal agents for the special facility revenue bonds issued for the special facility; (2) To pay to the authority: (A) A ground rental, as determined by the authority, if the land on which the special facility is located was not acquired from the proceeds of the special facility revenue bonds; or (B) A properly allocable share of the administrative costs of the authority in carrying out the special facility lease and administering the special facility revenue bonds issued for the special facility, if the land was acquired from the proceeds of the special facility revenue bonds; (3) To either operate, maintain, and repair the special facility and pay the costs thereof or to pay to the authority all costs of operation, maintenance, and repair of the special facility; (4) To: (A) Insure, or cause to be insured, the special facility under builder's risk insurance (or similar insurance) in the amount of the cost of construction of the special facility to be financed from the proceeds of the special facility revenue bonds; (B) Procure and maintain, or cause to be procured or maintained, to the extent commercially available, a comprehensive insurance policy providing protection and insuring the authority and its officers, agents, servants, and employees (and so long as special facility revenue bonds are outstanding, the trustee) against all direct or contingent loss or liability for damages for personal injury or death or damage to property, including loss of use thereof, occurring on or in any way related to the special facility or occasioned by reason of occupancy by and the operations of the other person upon, in, and around the special facility; (C) Provide all risk casualty insurance, including insurance against loss or damage by fire, lightning, flood, earthquake, typhoon, or hurricane, with standard extended coverage and standard vandalism and other malicious mischief endorsements; and (D) Provide insurance for workers' compensation and employer's liability for personal injury or death or damage to property (the other party may self-insure for workers' compensation if permitted by law); provided that all policies with respect to loss or damage of property including fire or other casualty and extended coverage and builder's risk shall provide for payments of the losses to the authority, the other person, or the trustee as their respective interests may appear; and provided further that the insurance may be procured and maintained as part of or in conjunction with other policies carried by the other person; and provided further that the insurance shall name the authority, and so long as any special facility revenue bonds are outstanding, the trustee, as additional insured; and (5) To indemnify, save, and hold the authority, the trustee and their respective agents, officers, members, and employees harmless from and against all claims and actions and all costs and expenses incidental to the investigation and defense thereof, by or on behalf of any person, firm, or corporation, based upon or arising out of the special facility or the other person's use and occupancy thereof, including, without limitation, from and against all claims and actions based upon and arising from any: (A) Condition of the special facility; (B) Breach or default on the part of the other person in the performance of any of the person's obligations under the special facility lease; (C) Fault or act of negligence of the other person or the person's agents, contractors, servants, employees, or licensees; or (D) Accident to, or injury or death of, any person or loss of, or damage to any property occurring in or about the special facility, including any claims or actions based upon or arising by reason of the negligence or any act of the other person. Any moneys received by the authority pursuant to paragraphs (2) and (3) shall be paid into the Hawaii community development [revolving] special fund and shall not be nor be deemed to be revenues of the special facility." SECTION 6. Section 206E-185, Hawaii Revised Statutes, is amended to read as follows: "§206E-185 Special facility revenue bonds. All special facility revenue bonds authorized to be issued in principal amounts not to exceed the total amount of bonds authorized by the legislature shall be issued pursuant to part III of chapter 39, except as follows: (1) No revenue bonds shall be issued unless at the time of issuance the authority shall have entered into a special facility lease with respect to the special facility for which the revenue bonds are to be issued; (2) The revenue bonds shall be issued in the name of the authority, and not in the name of the State; (3) The revenue bonds shall be payable solely from and secured solely by the revenues derived by the authority from the special facility for which they are issued; (4) The final maturity date of the revenue bonds shall not be later than either the estimated life of the special facility for which they are issued or the initial term of the special facility lease; (5) If deemed necessary or advisable by the authority, or to permit the obligations of the other person to the special facility lease to be registered under the U.S. Securities Act of 1933, the authority, with the approval of the director of finance, may appoint a national or state bank within or without the State to serve as trustee for the holders of the revenue bonds and may enter into a trust indenture or trust agreement with the trustee. The trustee may be authorized by the authority to collect, hold, and administer the revenues derived from the special facility for which the revenue bonds are issued and to apply the revenues to the payment of the principal and interest on the revenue bonds. If any trustee shall be appointed, any trust indenture or agreement entered into by the authority with the trustee may contain the covenants and provisions authorized by part III of chapter 39 to be inserted in a resolution adopted or certificate issued, as though the words "resolution" or "certificate" as used in that part read "trust indenture or agreement". The covenants and provisions shall not be required to be included in the resolution or certificate authorizing the issuance of the revenue bonds if included in the trust agreement or indenture. Any resolution or certificate, trust indenture, or trust agreement adopted, issued, or entered into by the authority pursuant to this part may also contain any provisions required for the qualification thereof under the U.S. Trust Indenture Act of 1939. The authority may pledge and assign to the trustee the special facility lease and the rights of the authority including the revenues thereunder; (6) If the authority, with the approval of the director of finance, shall have appointed or shall appoint a trustee for the holders of the revenue bonds, then notwithstanding the provisions of the second sentence of section 39-68, the director of finance may elect not to serve as fiscal agent for the payment of the principal and interest, and for the purchase, registration, transfer, exchange, and redemption, of the revenue bonds, or may elect to limit the functions the director of finance shall perform as the fiscal agent. The authority, with the approval of the director of finance, may appoint the trustee to serve as the fiscal agent, and may authorize and empower the trustee to perform the functions with respect to payment, purchase, registration, transfer, exchange, and redemption, that the authority may deem necessary, advisable, or expedient, including, without limitation, the holding of the revenue bonds and coupons which have been paid and the supervision and conduction of the destruction thereof in accordance with sections 40-10 and 40-11. Nothing in this paragraph shall be a limitation upon or construed as a limitation upon the powers granted in the preceding paragraph to the authority, with the approval of the director of finance, to appoint the trustee, or granted in sections 36-3 and 39-13 and the third sentence of section 39-68 to the director of finance to appoint the trustee or others, as fiscal agents, paying agents, and registrars for the revenue bonds or to authorize and empower the fiscal agents, paying agents, and registrars to perform the functions referred to in that paragraph and sections, it being the intent of this paragraph to confirm that the director of finance as aforesaid may elect not to serve as fiscal agent for the revenue bonds or may elect to limit the functions the director of finance shall perform as the fiscal agent, that the director of finance may deem necessary, advisable, or expedient; (7) The authority may sell the revenue bonds either at public or private sale; (8) If no trustee shall be appointed to collect, hold, and administer the revenues derived from the special facility for which the revenue bonds are issued, the revenues shall be held in a separate account in the treasury of the State, separate and apart from the Hawaii community development [revolving] special fund, to be applied solely to the carrying out of the resolution, certificate, trust indenture, or trust agreement authorizing or securing the revenue bonds; (9) If the resolution, certificate, trust indenture, or trust agreement shall provide that no revenue bonds issued thereunder shall be valid or obligatory for any purpose unless certified or authenticated by the trustee for the holders of the revenue bonds, signatures of the officers of the State upon the bonds required by section 39-56 may be facsimiles of their signatures; (10) Proceeds of the revenue bonds may be used and applied by the authority to reimburse the other person to the special facility lease for all preliminary costs and expenses, including architectural and legal costs; and (11) If the special facility lease shall require the other person to operate, maintain, and repair the special facility which is the subject of the lease, at the other person's expense, the requirement shall constitute compliance by the authority with section 39‑61(a)(2), and none of the revenues derived by the authority from the special facility shall be required to be applied to the purposes of section 39‑62(2). Sections 39-62(4), 39-62(5), and 39-62(6) shall not apply to the revenues derived from a special facility lease." SECTION 7. Section 206E-195, Hawaii Revised Statutes, is amended by amending its title and subsections (a) and (b) to read as follows: "[[]§206E-195[]] Kalaeloa community development [revolving] special fund. (a) There is established in the state treasury the Kalaeloa community development [revolving] special fund, into which shall be deposited: (1) All revenues, income, and receipts of the authority for the Kalaeloa community development district, notwithstanding any other law to the contrary, including section 206E-16; (2) Moneys directed, allocated, or disbursed to the Kalaeloa community development district from government agencies or private individuals or organizations, including grants, gifts, awards, donations, and assessments of landowners for costs to administer and operate the Kalaeloa community development district; and (3) Moneys appropriated to the fund by the legislature. (b) Moneys in the Kalaeloa community development [revolving] special fund shall be used for the purposes of this part." SECTION 8. Section 206E-201, Hawaii Revised Statutes, is amended by amending the definition of "fund" to read as follows: ""Fund" means the Heeia community development [revolving] special fund." SECTION 9. Section 206E-204, Hawaii Revised Statutes, is amended by amending its title and subsection (a) to read as follows: "[[]§206E-204[]] Heeia community development [revolving] special fund. (a) There is established in the state treasury the Heeia community development [revolving] special fund, into which shall be deposited: (1) All revenues, income, and receipts of the authority for the district, notwithstanding any other law to the contrary, including section 206E-16; (2) Moneys directed, allocated, or disbursed to the district from government agencies or private individuals or organizations, including grants, gifts, awards, donations, and assessments of landowners for costs to administer and operate the district; and (3) Moneys appropriated to the fund by the legislature." SECTION 10. Section 206M-15.2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) Subject to available funds, the research and development program shall: (1) Apply [the research and development special fund] funds to support product development, technology transfer, and commercialization; (2) Provide capital to support accelerated commercialization activities for qualified Hawaii-based small businesses; (3) Provide capital to sustain high-potential infrastructure development to assist qualified Hawaii-based small businesses towards commercial success; (4) Promote efforts that reverse the loss of qualified workers to other states by providing jobs to retain existing Hawaii technology employees and enable highly qualified scientists and engineers to return to living-wage jobs in Hawaii; (5) Promote efforts that keep technology companies in Hawaii by limiting the need to seek out-of-state venture capital, which dilutes local ownership and increases the probability of high-potential technology companies moving from Hawaii; and (6) Provide grants of up to $300,000 for critical product development that enables a qualified Hawaii-based small business to achieve significant product development and technical milestones." SECTION 11. Section 210D-4, Hawaii Revised Statutes, is amended to read as follows: "§210D-4 Hawaii community-based economic development [revolving] special fund; established. There is established a [revolving] special fund to be known as the Hawaii community-based economic development [revolving] special fund from which moneys shall be loaned or granted by the department under this chapter. All moneys appropriated to the fund by the legislature, received as repayments of loans, payments of interest or fees, and all other moneys received by the fund from any other source shall be deposited into the [revolving] special fund and used for the purposes of this chapter. The department may deposit moneys it receives from the repayments of loans and payments of interest or fees from the Hawaii capital loan program established by chapter 210, the Hawaii large fishing vessel purchase, construction, renovation, maintenance, and repair loan program established by part II of chapter 189, and the Hawaii small fishing vessel loan program established by part IV of chapter 189, into the Hawaii community-based economic development [revolving] special fund to be used for the purposes of this chapter. The department may use all appropriations and other moneys in the [revolving] special fund not appropriated for a designated purpose to make grants or loans." SECTION 12. Section 210D-8, Hawaii Revised Statutes, is amended to read as follows: "§210D-8 Powers and duties. The department shall have the necessary powers to carry out the purposes of this chapter, including the following: (1) With advice from the council, prescribe the qualifications for eligibility of applicants for loans and grants; (2) With advice from the council, establish preferences and priorities in determining eligibility for financial assistance; (3) Establish the conditions, consistent with the purpose of this chapter, for the awarding of financial assistance; (4) Provide for inspection at reasonable hours of facilities, books, and records of a community-based organization that has applied for or has been awarded financial assistance and require the submission of progress and final reports; (5) Provide loans and grants for community-based economic development activities and community-based enterprises for purposes consistent with this chapter; (6) Determine the necessity for and the extent of security required in a loan; (7) Prescribe and provide appropriate management counseling and monitoring of business activities; (8) Administer the Hawaii community-based economic development [revolving] special fund; (9) Include in its budget for subsequent fiscal periods amounts necessary to effectuate the purposes of this chapter; (10) Participate in loans made to qualified persons by private lenders; (11) Establish interest rates chargeable by the State for direct and participation loans; and (12) Adopt rules pursuant to chapter 91 to implement this chapter." SECTION 13. Section 206M-15.3, Hawaii Revised Statutes, is repealed. ["[§206M-15.3] Research and development special fund; established. There is established in the treasury of the State of Hawaii the research and development special fund to be administered by the development corporation pursuant to section 206M-15.2."] SECTION 14. Section 206M-15.6, Hawaii Revised Statutes, is repealed. ["[§206M-15.6] Hawaii technology loan revolving fund. There is established the Hawaii technology loan revolving fund for the purpose of investing in technology development in Hawaii. The following shall be deposited into the Hawaii technology loan revolving fund: (1) Appropriations from the legislature; (2) Moneys received as repayments of loans; (3) Investment earnings; (4) Royalties; (5) Premiums, or fees or equity charged by the corporation, or otherwise received by the corporation; and (6) Loans that are convertible to equity; provided that the total amount of moneys in the fund shall not exceed $2,000,000 at the end of any fiscal year."] SECTION 15. All unencumbered balances in the research and development special fund repealed by section 13 of this Act and the Hawaii technology loan revolving fund repealed by section 14 of this Act shall lapse to the credit of the general fund. SECTION 16. The Kalaeloa facilities trust account administratively established in 2018 is reclassified as a special fund. SECTION 17. The energy audits - recipients' share of cost trust account administratively established in 2012 is abolished and any unencumbered balance shall lapse to the credit of the general fund. SECTION 18. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 19. This Act shall take effect on July 1, 2050. |
|---|
| 47 | + | SECTION 1. The purpose of this Act is to reclassify, repeal, or abolish various non-general funds, including accounts, of the department of business, economic development, and tourism pursuant to the recommendations made by the auditor in auditor's report no. 20-01 and to transfer the unencumbered balances to the general fund. SECTION 2. Section 206E-6, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows: "(g) All sums collected under this section shall be deposited in the Hawaii community development [revolving] special fund established by section 206E-16; except that notwithstanding section 206E-16, all moneys collected on account of assessments and interest thereon for any specific public facilities financed by the issuance of bonds shall be set apart in a separate special fund and applied solely to the payment of the principal and interest on these bonds, the cost of administering, operating, and maintaining the program, the establishment of reserves, and other purposes as may be authorized in the proceedings providing for the issuance of the bonds. If any surplus remains in any special fund after the payment of the bonds chargeable against [such] that fund, it shall be credited to and become a part of the Hawaii community development [revolving] special fund. Moneys in the Hawaii community development [revolving] special fund may be used to make up any deficiencies in the special fund." SECTION 3. Section 206E-16, Hawaii Revised Statutes, is amended to read as follows: "[[]§206E-16[]] Hawaii community development [revolving] special fund. There is created the Hawaii community development [revolving] special fund into which all receipts and revenues of the authority shall be deposited. Proceeds from the fund shall be used for the purposes of this chapter." SECTION 4. Section 206E-184, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) In addition to the conditions and terms set forth in this part, any special facility lease entered into by the authority shall at least contain provisions obligating the other person to the special facility lease: (1) To pay to the authority during the initial term of the special facility lease, whether the special facility is capable of being used or occupied or is being used or occupied by the other person, a rental or rentals at the time or times and in the amount or amounts that will be sufficient: (A) To pay the principal and interest on all special facility revenue bonds issued for the special facility; (B) To establish or maintain any reserves for these payments; and (C) To pay all fees and expenses of the trustees, paying agents, transfer agents, and other fiscal agents for the special facility revenue bonds issued for the special facility; (2) To pay to the authority: (A) A ground rental, as determined by the authority, if the land on which the special facility is located was not acquired from the proceeds of the special facility revenue bonds; or (B) A properly allocable share of the administrative costs of the authority in carrying out the special facility lease and administering the special facility revenue bonds issued for the special facility, if the land was acquired from the proceeds of the special facility revenue bonds; (3) To either operate, maintain, and repair the special facility and pay the costs thereof or to pay to the authority all costs of operation, maintenance, and repair of the special facility; (4) To: (A) Insure, or cause to be insured, the special facility under builder's risk insurance (or similar insurance) in the amount of the cost of construction of the special facility to be financed from the proceeds of the special facility revenue bonds; (B) Procure and maintain, or cause to be procured or maintained, to the extent commercially available, a comprehensive insurance policy providing protection and insuring the authority and its officers, agents, servants, and employees (and so long as special facility revenue bonds are outstanding, the trustee) against all direct or contingent loss or liability for damages for personal injury or death or damage to property, including loss of use thereof, occurring on or in any way related to the special facility or occasioned by reason of occupancy by and the operations of the other person upon, in, and around the special facility; (C) Provide all risk casualty insurance, including insurance against loss or damage by fire, lightning, flood, earthquake, typhoon, or hurricane, with standard extended coverage and standard vandalism and other malicious mischief endorsements; and (D) Provide insurance for workers' compensation and employer's liability for personal injury or death or damage to property (the other party may self-insure for workers' compensation if permitted by law); provided that all policies with respect to loss or damage of property including fire or other casualty and extended coverage and builder's risk shall provide for payments of the losses to the authority, the other person, or the trustee as their respective interests may appear; and provided further that the insurance may be procured and maintained as part of or in conjunction with other policies carried by the other person; and provided further that the insurance shall name the authority, and so long as any special facility revenue bonds are outstanding, the trustee, as additional insured; and (5) To indemnify, save, and hold the authority, the trustee and their respective agents, officers, members, and employees harmless from and against all claims and actions and all costs and expenses incidental to the investigation and defense thereof, by or on behalf of any person, firm, or corporation, based upon or arising out of the special facility or the other person's use and occupancy thereof, including, without limitation, from and against all claims and actions based upon and arising from any: (A) Condition of the special facility; (B) Breach or default on the part of the other person in the performance of any of the person's obligations under the special facility lease; (C) Fault or act of negligence of the other person or the person's agents, contractors, servants, employees, or licensees; or (D) Accident to, or injury or death of, any person or loss of, or damage to any property occurring in or about the special facility, including any claims or actions based upon or arising by reason of the negligence or any act of the other person. Any moneys received by the authority pursuant to paragraphs (2) and (3) shall be paid into the Hawaii community development [revolving] special fund and shall not be nor be deemed to be revenues of the special facility." SECTION 5. Section 206E-185, Hawaii Revised Statutes, is amended to read as follows: "§206E-185 Special facility revenue bonds. All special facility revenue bonds authorized to be issued in principal amounts not to exceed the total amount of bonds authorized by the legislature shall be issued pursuant to part III of chapter 39, except as follows: (1) No revenue bonds shall be issued unless at the time of issuance the authority shall have entered into a special facility lease with respect to the special facility for which the revenue bonds are to be issued; (2) The revenue bonds shall be issued in the name of the authority, and not in the name of the State; (3) The revenue bonds shall be payable solely from and secured solely by the revenues derived by the authority from the special facility for which they are issued; (4) The final maturity date of the revenue bonds shall not be later than either the estimated life of the special facility for which they are issued or the initial term of the special facility lease; (5) If deemed necessary or advisable by the authority, or to permit the obligations of the other person to the special facility lease to be registered under the U.S. Securities Act of 1933, the authority, with the approval of the director of finance, may appoint a national or state bank within or without the State to serve as trustee for the holders of the revenue bonds and may enter into a trust indenture or trust agreement with the trustee. The trustee may be authorized by the authority to collect, hold, and administer the revenues derived from the special facility for which the revenue bonds are issued and to apply the revenues to the payment of the principal and interest on the revenue bonds. If any trustee shall be appointed, any trust indenture or agreement entered into by the authority with the trustee may contain the covenants and provisions authorized by part III of chapter 39 to be inserted in a resolution adopted or certificate issued, as though the words "resolution" or "certificate" as used in that part read "trust indenture or agreement". The covenants and provisions shall not be required to be included in the resolution or certificate authorizing the issuance of the revenue bonds if included in the trust agreement or indenture. Any resolution or certificate, trust indenture, or trust agreement adopted, issued, or entered into by the authority pursuant to this part may also contain any provisions required for the qualification thereof under the U.S. Trust Indenture Act of 1939. The authority may pledge and assign to the trustee the special facility lease and the rights of the authority including the revenues thereunder; (6) If the authority, with the approval of the director of finance, shall have appointed or shall appoint a trustee for the holders of the revenue bonds, then notwithstanding the provisions of the second sentence of section 39-68, the director of finance may elect not to serve as fiscal agent for the payment of the principal and interest, and for the purchase, registration, transfer, exchange, and redemption, of the revenue bonds, or may elect to limit the functions the director of finance shall perform as the fiscal agent. The authority, with the approval of the director of finance, may appoint the trustee to serve as the fiscal agent, and may authorize and empower the trustee to perform the functions with respect to payment, purchase, registration, transfer, exchange, and redemption, that the authority may deem necessary, advisable, or expedient, including, without limitation, the holding of the revenue bonds and coupons which have been paid and the supervision and conduction of the destruction thereof in accordance with sections 40-10 and 40-11. Nothing in this paragraph shall be a limitation upon or construed as a limitation upon the powers granted in the preceding paragraph to the authority, with the approval of the director of finance, to appoint the trustee, or granted in sections 36-3 and 39-13 and the third sentence of section 39-68 to the director of finance to appoint the trustee or others, as fiscal agents, paying agents, and registrars for the revenue bonds or to authorize and empower the fiscal agents, paying agents, and registrars to perform the functions referred to in that paragraph and sections, it being the intent of this paragraph to confirm that the director of finance as aforesaid may elect not to serve as fiscal agent for the revenue bonds or may elect to limit the functions the director of finance shall perform as the fiscal agent, that the director of finance may deem necessary, advisable, or expedient; (7) The authority may sell the revenue bonds either at public or private sale; (8) If no trustee shall be appointed to collect, hold, and administer the revenues derived from the special facility for which the revenue bonds are issued, the revenues shall be held in a separate account in the treasury of the State, separate and apart from the Hawaii community development [revolving] special fund, to be applied solely to the carrying out of the resolution, certificate, trust indenture, or trust agreement authorizing or securing the revenue bonds; (9) If the resolution, certificate, trust indenture, or trust agreement shall provide that no revenue bonds issued thereunder shall be valid or obligatory for any purpose unless certified or authenticated by the trustee for the holders of the revenue bonds, signatures of the officers of the State upon the bonds required by section 39-56 may be facsimiles of their signatures; (10) Proceeds of the revenue bonds may be used and applied by the authority to reimburse the other person to the special facility lease for all preliminary costs and expenses, including architectural and legal costs; and (11) If the special facility lease shall require the other person to operate, maintain, and repair the special facility which is the subject of the lease, at the other person's expense, the requirement shall constitute compliance by the authority with section 39‑61(a)(2), and none of the revenues derived by the authority from the special facility shall be required to be applied to the purposes of section 39‑62(2). Sections 39-62(4), 39-62(5), and 39-62(6) shall not apply to the revenues derived from a special facility lease." SECTION 6. Section 206E-195, Hawaii Revised Statutes, is amended by amending its title and subsections (a) and (b) to read as follows: "[[]§206E-195[]] Kalaeloa community development [revolving] special fund. (a) There is established in the state treasury the Kalaeloa community development [revolving] special fund, into which shall be deposited: (1) All revenues, income, and receipts of the authority for the Kalaeloa community development district, notwithstanding any other law to the contrary, including section 206E-16; (2) Moneys directed, allocated, or disbursed to the Kalaeloa community development district from government agencies or private individuals or organizations, including grants, gifts, awards, donations, and assessments of landowners for costs to administer and operate the Kalaeloa community development district; and (3) Moneys appropriated to the fund by the legislature. (b) Moneys in the Kalaeloa community development [revolving] special fund shall be used for the purposes of this part." SECTION 7. Section 206E-201, Hawaii Revised Statutes, is amended by amending the definition of "fund" to read as follows: "Fund" means the Heeia community development [revolving] special fund." SECTION 8. Section 206E-204, Hawaii Revised Statutes, is amended by amending its title and subsection (a) to read as follows: "[[]§206E-204[]] Heeia community development [revolving] special fund. (a) There is established in the state treasury the Heeia community development [revolving] special fund, into which shall be deposited: (1) All revenues, income, and receipts of the authority for the district, notwithstanding any other law to the contrary, including section 206E-16; (2) Moneys directed, allocated, or disbursed to the district from government agencies or private individuals or organizations, including grants, gifts, awards, donations, and assessments of landowners for costs to administer and operate the district; and (3) Moneys appropriated to the fund by the legislature." SECTION 9. Section 206M-15.2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) Subject to available funds, the research and development program shall: (1) Apply [the research and development special fund] funds to support product development, technology transfer, and commercialization; (2) Provide capital to support accelerated commercialization activities for qualified Hawaii-based small businesses; (3) Provide capital to sustain high-potential infrastructure development to assist qualified Hawaii-based small businesses towards commercial success; (4) Promote efforts that reverse the loss of qualified workers to other states by providing jobs to retain existing Hawaii technology employees and enable highly qualified scientists and engineers to return to living-wage jobs in Hawaii; (5) Promote efforts that keep technology companies in Hawaii by limiting the need to seek out-of-state venture capital, which dilutes local ownership and increases the probability of high-potential technology companies moving from Hawaii; and (6) Provide grants of up to $300,000 for critical product development that enables a qualified Hawaii-based small business to achieve significant product development and technical milestones." SECTION 10. Section 210D-4, Hawaii Revised Statutes, is amended to read as follows: "§210D-4 Hawaii community-based economic development [revolving] special fund; established. There is established a [revolving] special fund to be known as the Hawaii community-based economic development [revolving] special fund from which moneys shall be loaned or granted by the department under this chapter. All moneys appropriated to the fund by the legislature, received as repayments of loans, payments of interest or fees, and all other moneys received by the fund from any other source shall be deposited into the [revolving] special fund and used for the purposes of this chapter. The department may deposit moneys it receives from the repayments of loans and payments of interest or fees from the Hawaii capital loan program established by chapter 210, the Hawaii large fishing vessel purchase, construction, renovation, maintenance, and repair loan program established by part II of chapter 189, and the Hawaii small fishing vessel loan program established by part IV of chapter 189, into the Hawaii community-based economic development [revolving] special fund to be used for the purposes of this chapter. The department may use all appropriations and other moneys in the [revolving] special fund not appropriated for a designated purpose to make grants or loans." SECTION 11. Section 210D-8, Hawaii Revised Statutes, is amended to read as follows: "§210D-8 Powers and duties. The department shall have the necessary powers to carry out the purposes of this chapter, including the following: (1) With advice from the council, prescribe the qualifications for eligibility of applicants for loans and grants; (2) With advice from the council, establish preferences and priorities in determining eligibility for financial assistance; (3) Establish the conditions, consistent with the purpose of this chapter, for the awarding of financial assistance; (4) Provide for inspection at reasonable hours of facilities, books, and records of a community-based organization that has applied for or has been awarded financial assistance and require the submission of progress and final reports; (5) Provide loans and grants for community-based economic development activities and community-based enterprises for purposes consistent with this chapter; (6) Determine the necessity for and the extent of security required in a loan; (7) Prescribe and provide appropriate management counseling and monitoring of business activities; (8) Administer the Hawaii community-based economic development [revolving] special fund; (9) Include in its budget for subsequent fiscal periods amounts necessary to effectuate the purposes of this chapter; (10) Participate in loans made to qualified persons by private lenders; (11) Establish interest rates chargeable by the State for direct and participation loans; and (12) Adopt rules pursuant to chapter 91 to implement this chapter." SECTION 12. Section 206M-15.3, Hawaii Revised Statutes, is repealed. ["[§206M-15.3] Research and development special fund; established. There is established in the treasury of the State of Hawaii the research and development special fund to be administered by the development corporation pursuant to section 206M-15.2."] SECTION 13. Section 206M-15.6, Hawaii Revised Statutes, is repealed. ["[§206M-15.6] Hawaii technology loan revolving fund. There is established the Hawaii technology loan revolving fund for the purpose of investing in technology development in Hawaii. The following shall be deposited into the Hawaii technology loan revolving fund: (1) Appropriations from the legislature; (2) Moneys received as repayments of loans; (3) Investment earnings; (4) Royalties; (5) Premiums, or fees or equity charged by the corporation, or otherwise received by the corporation; and (6) Loans that are convertible to equity; provided that the total amount of moneys in the fund shall not exceed $2,000,000 at the end of any fiscal year."] SECTION 14. All unencumbered balances in the research and development special fund repealed by section 12 of this Act and the Hawaii technology loan revolving fund repealed by section 13 of this Act shall lapse to the credit of the general fund. SECTION 15. The Kalaeloa facilities trust account administratively established in 2018 is reclassified as a special fund. SECTION 16. The energy audits - recipients' share of cost trust account administratively established in 2012 is abolished and any unencumbered balance shall lapse to the credit of the general fund. SECTION 17. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 18. This Act shall take effect on July 1, 2021. INTRODUCED BY: _____________________________ |
|---|