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

(b)  Financial participation shall be made onthe condition that the recipient of the assistance shall utilize the money toassist economic development projects within the State that have potential forcreating new jobs or retaining current jobs within the State.

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

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

(1)  The project is economically sound;

(2)  The project can be successfully completed;

(3)  The project will promote economicdiversification;

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

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

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

The corporation shall not acquire securities to anextent that would provide the corporation effective voting control of anyenterprise after giving effect to the conversion of all outstanding convertiblesecurities of the enterprise.

(e)  Investments by the corporation to personsshall be made on the basis of solicitation and a competitive technical reviewprocess, subject to the availability of funds allocated to the corporation formaking investments.  Investments by the corporation shall not be subject tochapter 42F.  Any organization applying for an investment shall meet thefollowing standards:

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

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

(3)  Comply with applicable federal and state lawsprohibiting 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 mayprescribe. [L 1990, c 110, pt of §3; am L 1991, c 335, §5; am L 1997, c 190,§6]