Hawaii House Bill HB2356

Hawaii 2024 Regular Session

• Introduced: 1/24/24
• Refer: 1/26/24
• Report Pass: 2/16/24
• Report Pass: 3/1/24
• Refer: 2/16/24
• Engrossed: 3/5/24
• Refer: 3/7/24
• Report Pass: 3/20/24
• Refer: 3/20/24

Caption

Relating To The Hawaii Technology Development Corporation.

Impact

By increasing the cap on grants and expanding the criteria for eligible expenses—including renewable energy technology systems—the bill aims to stimulate economic growth within Hawaii. Businesses engaged in manufacturing will benefit significantly as they will now have access to more extensive funding for equipment purchases, necessary training, and energy efficiency upgrades. This change is likely to enhance the competitiveness of Hawaii's manufacturing sector and facilitate a transition towards more sustainable energy sources in production.

Summary

House Bill 2356 focuses on supporting small businesses in Hawaii through various grant programs administered by the Hawaii Technology Development Corporation (HTDC). The bill amends existing statutes to enhance financial assistance to local businesses that receive federal grants, specifically the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. It outlines eligibility criteria for businesses to qualify for financial support, which includes receiving federal contracts or awards. Moreover, it introduces a new manufacturing development program that emphasizes employee training and energy efficiency improvements within manufacturing processes.

Sentiment

The general sentiment surrounding HB 2356 is predominantly supportive within the business community and among legislators interested in economic development. Proponents argue that the bill will provide much-needed support to local businesses, potentially leading to job creation and increased economic resilience in Hawaii. However, some concerns have been raised regarding the implications of increased spending on the state budget, particularly as some appropriations may exceed the general fund expenditure ceiling for the upcoming fiscal years, which could spark opposition among fiscal conservatives.

Contention

Notably, while the bill aims to benefit local businesses, there are lingering questions about the sustainability of funding and whether these grant programs will adequately address the unique challenges faced by small manufacturers in Hawaii. The inclusion of renewable energy technology into the eligible grant categories highlights an effort to align economic development with environmental sustainability, yet it also raises concerns about the effectiveness and long-term impact of the programs authorized by this bill. Critics may scrutinize the state’s ability to manage these grants efficiently and whether they can genuinely translate to sustained economic benefits.