§211F-7  Actions of corporation; guidelines. 
(a)  All actions taken by the corporation shall be necessary to achieve the
purposes and objectives of this chapter.  The corporation shall evaluate all
programs after three years to determine their effectiveness.  The corporation
shall establish rules to assure equal opportunity to minority-owned businesses,
and shall encourage the development of minority-owned businesses.  The
corporation shall support and encourage participation by Hawaii companies in
federal grant programs, such as the Small Business Innovation Research Program.



(b)  Financial participation shall be made on
the condition that the recipient of the assistance shall utilize the money to
assist economic development projects within the State that have potential for
creating new jobs or retaining current jobs within the State.



(c)  Financial participation by the corporation
in private financial investment funds shall be made with the provision that the
private fund shall make investments in Hawaii in amounts at least equal to the
amount of state participation.



(d)  The corporation shall not make direct
investments in individual businesses except upon a two-thirds vote of the board
in each case considered.  When deciding whether to enter into a direct
investment, the corporation shall consider whether:



(1)  The project is economically sound;



(2)  The project can be successfully completed;



(3)  The project will promote economic
diversification;



(4)  The project is located in or will locate in the
State and has a reasonable potential to create desirable employment
opportunities for residents of the State;



(5)  The project has been unable to obtain sufficient
funding on reasonable terms through ordinary means; and



(6)  The project can be partially financed through
ordinary means at reasonable terms.



The corporation shall not acquire securities to an
extent that would provide the corporation effective voting control of any
enterprise after giving effect to the conversion of all outstanding convertible
securities of the enterprise.



(e)  Investments by the corporation to persons
shall be made on the basis of solicitation and a competitive technical review
process, subject to the availability of funds allocated to the corporation for
making investments.  Investments by the corporation shall not be subject to
chapter 42F.  Any organization applying for an investment shall meet the
following standards:



(1)  Have bylaws or policies that describe the manner
in which business is conducted and policies relating to nepotism and management
of potential conflict of interest situations;



(2)  Be licensed and accredited, as applicable, in
accordance with the requirements of federal, state, and county governments;



(3)  Comply with applicable federal and state laws
prohibiting discrimination against any person on the basis of race, color,
national origin, religion, creed, sex, age, or physical handicap; and



(4)  Comply with other requirements as the board may
prescribe. [L 1990, c 110, pt of §3; am L 1991, c 335, §5; am L 1997, c 190,
§6]