THE SENATE
S.B. NO.
992
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO THE HAWAiI TECHNOLOGY DEVELOPMENT CORPORATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the implementation of a policy framework for the Hawaii technology development corporation (HTDC) will not require a significant additional investment in overhead resources but will require funds for specific projects that are identified collaboratively by the legislature and HTDC. The implementation will also require the establishment of specific goals that these projects will address and reports to the legislature that assess the effectiveness of the projects in meeting those goals.
The legislature further finds that HTDC will serve as a facilitative catalyst for innovation in the State and will help to align the State with the emerging knowledge-based, zero-emission, and digital global economy while putting Hawaii on the path toward economic prosperity.
Accordingly, the purpose of this Act is to promote economic recovery and diversification by:
(1) Requiring HTDC to establish state goals and implement projects to promote economic diversification through innovation and technology;
(2) Appropriating funds to HTDC to implement projects to achieve these goals; and
(3) Requiring the HTDC to submit annual reports to the legislature on the projects implemented pursuant to this Act.
SECTION 2. (a) The Hawaii technology development corporation shall establish the following state goals and implement projects to facilitate economic diversification through innovation and technology:
(1) Economic diversification through participation in the digital economy. Projects to achieve this state goal shall promote economic diversification by strengthening the State's participation in the digital economy, including:
(A) Accessing new markets and market opportunities;
(B) Strengthening business capacity and readiness to participate in the digital economy;
(C) Retaining and strengthening businesses that are increasing revenues through the digital economy;
(D) Strengthening digital economy infrastructure including broadband affordability and coworking facilities; and
(E) Increasing the number of businesses, revenue, and employees dedicated to the digital economy;
(2) Economic diversification through strengthened trade activities. Projects to achieve this state goal shall promote economic diversification by strengthening traded activities that redistribute the State's gross domestic product, including:
(A) Increasing the export of goods manufactured in the State;
(B) Increasing the export of knowledge-based professional services;
(C) Increasing the value of knowledge-based professional services through research and development and protection of intellectual property rights;
(D) Strengthening the post-production capacity for value-added agriculture and manufacturing; and
(E) Increasing the number of businesses, revenue, and employees in traded sectors; and
(3) Economic diversification through increased activity to reduce and mitigate climate change. Projects to achieve this state goal shall promote economic diversification by focusing on activities at the intersection of technology development and climate change mitigation, including:
(A) Making renewable energy more affordable;
(B) Retaining and strengthening businesses that are increasing revenues through solutions to reduce climate change;
(C) Increasing the export of knowledge-based professional services related to climate change mitigation; and
(D) Increasing the number of businesses, revenue, and employees in renewable energy sectors.
(b) The corporation may work with any other state or county agency for the implementation of these projects.
(c) No later than twenty days prior to the convening of the regular sessions of 2026, 2027, and 2028, the corporation shall submit a report to the legislature that includes:
(1) The status of the projects implemented, or to be implemented by the corporation pursuant to this Act;
(2) The outcomes of the projects, including an assessment of each project's effectiveness in achieving the applicable state goals; and
(3) Findings and recommendations, including any proposed legislation.
(d) For the purposes of this section, "corporation" means the Hawaii technology development corporation.
SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $6,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the purpose of economic diversification pursuant to this Act, to be allocated as follows:
(1) $2,000,000 to the Hawaii small business innovation research program, to provide matching grants to help companies that received federal small business innovation research or small business technology transfer grants further develop new products to solve critical issues;
(2) $2,000,000 to the manufacturing assistance program, to help Hawaii-based manufacturers become globally competitive; and
(3) $2,000,000 to the accelerator and small business training programs to help develop companies that are solving large-scale problems in the community using innovative, advanced manufacturing, and technology-based solutions.
The sums appropriated shall be expended by the Hawaii technology development corporation for the purposes of this Act.
SECTION 4. The appropriation made for projects authorized by section 3 of this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2027, shall lapse as of that date.
SECTION 5. This Act shall take effect on July 1, 2025.
INTRODUCED BY:
_____________________________
Report Title:
HTDC; SBIR; MAP; Accelerator and Small Business Training Programs; Economic Diversification; Reports; Appropriations
Description:
Requires the Hawaii Technology Development Corporation to establish state goals and implement projects to promote economic diversification through innovation and technology. Requires annual reports to the Legislature. Appropriates funds to the Small Business Innovation Research Program, Manufacturing Assistance Program, and Accelerator and Small Business Training Programs.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.