§206M-15  High technology research anddevelopment loans and grants.  (a)  All moneys necessary to carry out thepurposes of this section shall be allocated by the legislature throughappropriations out of the state general fund.  The development corporationshall include in its budgetary request for the upcoming fiscal period, theamounts necessary to effectuate the purposes of this section.  All moneys,interest charges, and other fees collected by the development corporation underthis section shall be deposited to the credit of the state general fund.  Inmaking any expenditure under this section, the development corporation shallanalyze each funding request to determine whether the project to be undertakenwill be economically viable and beneficial to the State.

(b)  The development corporation may providegrants to any business in Hawaii that:

(1)  Receives a federal small business innovationresearch phase I award or contract from any participating federal agency, up tofifty per cent of the amount of the federal award or contract;

(2)  Receives a federal small business technologytransfer program award or contract from any participating federal agency, up tofifty per cent of the amount of the federal award or contract; or

(3)  Applies for a small business innovation researchfederal grant or a small business technology transfer program federal grant, inan amount not to exceed $3,000,

subject to the availability of funds.

(c)  The development corporation shall adoptrules pursuant to chapter 91 that:

(1)  Specify the qualifications for eligibility ofgrant applicants;

(2)  Establish priorities in determining eligibilityin the event that insufficient funds are available to fund otherwise qualifiedapplicants; and

(3)  Give preference to all qualified businessesreceiving their first award in one fiscal year over multiple award grantees.

The development corporation may adopt any otherrules pursuant to chapter 91 necessary for the purposes of this section.

(d)  If funds appropriated for the purpose ofmaking grants under this section are inadequate to satisfy all qualifiedrequests, the development corporation shall apply for funds to be transferredfrom the Hawaii capital loan revolving fund to provide the grants in accordancewith subsection (b).  The amount of any single transfer of funds shall notexceed $100,000, and the development corporation shall transfer the entireamount back to the Hawaii capital loan revolving fund within twelve months ofreceiving the funds.  No more than one fund transfer shall be outstanding atany one time.  The director of business, economic development, and tourism maytransfer funds from the Hawaii capital loan revolving fund to the developmentcorporation upon request to carry out the purposes of this section.  Transfersof funds shall be made without any charges or fees. [L 1983, c 152, pt of §2;am L 1989, c 196, §3; am L 1991, c 85, §1; am L 1992, c 63, §1; am L 1993, c280, §18; am L 2000, c 72, §19; am L 2006, c 282, §2; am L 2009, c 136, §1]