reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 210D. Community-Based Development › 210D-8 Powers and duties.

§210D-8 Powers and duties.
The department shall have the necessary powers to carry out the purposes of this chapter, including the following:
(1) With advice from the council, prescribe the qualifications for eligibility of applicants for loans and grants;
(2) With advice from the council, establish preferences and priorities in determining eligibility for financial assistance;
(3) Establish the conditions, consistent with the purpose of this chapter, for the awarding of financial assistance;
(4) Provide for inspection at reasonable hours of facilities, books, and records of a community-based organization that has applied for or has been awarded financial assistance and require the submission of progress and final reports;
(5) Provide loans and grants for community-based economic development activities and community-based enterprises for purposes consistent with this chapter;
(6) Determine the necessity for and the extent of security required in a loan;
(7) Prescribe and provide appropriate management counseling and monitoring of business activities;
(8) Administer the Hawaii community-based economic development special fund;
(9) Include in its budget for subsequent fiscal periods amounts necessary to effectuate the purposes of this chapter;
(10) Participate in loans made to qualified persons by private lenders;
(11) Establish interest rates chargeable by the State for direct and participation loans; and
(12) Adopt rules pursuant to chapter 91 to implement this chapter. [L 1990, c 111, pt of §2; am L 1996, c 192, §8; am L 2009, c 124, §5; am L Sp 2021, c 9, §32]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 210D. Community-Based Development › 210D-9 Loans; limitation and terms.

§210D-9 Loans; limitation and terms.
Loans made under this chapter shall be for the purposes and in accordance with the terms specified in paragraphs (1) and (2) and shall be made only to applicants who meet the eligibility requirements specified therein.
(1) Community-based enterprise establishment and improvement loans may be made to provide for:
(A) The start-up costs, purchase or improvement of a community-based enterprise or working capital; and
(B) The purchase, construction, or improvement of facilities; and
(2) Operating loans may be made to carry on and improve an existing enterprise, including:
(A) The purchase of equipment; and
(B) The payment of production and marketing expenses including materials, labor, and services.
The loans shall be for an amount not to exceed $250,000 and for a term not to exceed ten years. [L 1990, c 111, pt of §2; am L 1996, c 192, §9; am L 2009, c 124, §6]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 210D. Community-Based Development › 210D-10 Terms of loans.

§210D-10 Terms of loans.
Loans shall be made to qualified applicants with the following terms and conditions:
(1) The amount of the outstanding balance on all loans issued under this chapter to any one applicant at any one time shall not exceed $250,000;
(2) The maximum term of a loan shall not exceed ten years;
(3) Each loan shall bear simple interest at a rate of not less than three and not more than six per cent a year, depending on the nature of the loan; and
(4) The commencement date for the repayment of the first installment on principal and interest of each loan may be deferred by the director of business, economic development, and tourism for a period not to exceed two years. [L 1990, c 111, pt of §2; am L 1996, c 192, §10; am L 2009, c 124, §7]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 210D. Community-Based Development › 210D-12 Priorities and preferences.

§210D-12 Priorities and preferences.
In selecting applicants for funding, the department shall make every effort to ensure that community-based economic development activities and community-based enterprises are distributed throughout the State. [L 1990, c 111, pt of §2; am L 1996, c 192, §12]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 210D. Community-Based Development › 210D-13 Exemption from chapters 42F and 103D.

§210D-13 Exemption from chapters 42F and 103D.
The provisions of chapters 42F and 103D shall not apply to the grants made pursuant to this chapter, but all grants made under this chapter shall be made only in accordance with the standards and conditions specified in section 210D-11. [L 1990, c 111, pt of §2; am L 1991, c 335, §4; am L 1997, c 190, §6; am L 2012, c 240, §2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 211D. Capital Access Program › 211D-1 Definitions.

§211D-1 Definitions.
As used in this chapter, unless the context otherwise requires:
"Capital access loan" means a loan that is entitled to be secured by the fund.
"Department" means the department of business, economic development, and tourism.
"Financial institution" includes a bank, trust company, banking association, savings and loan association, mortgage company, investment bank, credit union, or nontraditional financial institution.
"Fund" means the Hawaii capital loan revolving fund established in section 210-3.
"Loan" includes a line of credit.
"Medium-sized business" means a corporation, partnership, sole proprietorship, or other legal entity that:
(1) Is domiciled in this State;
(2) Is formed to make a profit; and
(3) Employs one hundred or more but fewer than five hundred full-time employees.
"Nonprofit organization" means a private, nonprofit, tax-exempt corporation, association, or organization listed in section 501(c)(3), Internal Revenue Code of 1986, as amended, that is domiciled in this State.
"Participating financial institution" means a financial institution participating in the program.
"Program" means the capital access program.
"Reserve account" means an account established in a participating financial institution on approval of the department in which money is deposited to serve as a source of additional revenue to reimburse the financial institution for losses on loans enrolled in the program.
"Small business" means a corporation, partnership, sole proprietorship, or other legal entity that:
(1) Is domiciled in this State;
(2) Is formed to make a profit;
(3) Is independently owned and operated; and
(4) Employs fewer than one hundred full-time employees. [L 2000, c 290, pt of §2]
Note
Section 210-3 referred to in the definition of "fund" is repealed.
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 211D. Capital Access Program › 211D-2 Powers of department in administering the capital access program.

§211D-2 Powers of department in administering the capital access program.
In administering the program, the department shall have all the powers necessary to carry out the purposes of this chapter, including the power to:
(1) Make, execute, and deliver contracts, conveyances, and other instruments necessary to the exercise of its powers;
(2) Invest money at the department's discretion in obligations determined proper by the department, and select and use depositories for its money;
(3) Employ personnel and counsel and pay the persons from money in the fund legally available for that purpose; and
(4) Impose and collect fees and charges in connection with any transaction and provide for reasonable penalties for delinquent payment of fees or charges. [L 2000, c 290, pt of §2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 211D. Capital Access Program › 211D-3 Capital access program.

§211D-3 Capital access program.
(a) The department shall establish a capital access program to assist a participating financial institution in making loans to businesses and nonprofit organizations that face barriers in accessing capital.
(b) The department shall use money in the fund to make a deposit in a participating financial institution's reserve account in an amount specified by this chapter to be a source of money the institution may receive as reimbursement for losses attributable to loans in the program.
(c) The department shall determine the eligibility of a financial institution to participate in the program and may set a limit on the number of eligible financial institutions that may participate in the program.
(d) To participate in the program, an eligible financial institution shall enter into a participation agreement with the department that sets out the terms and conditions under which the department will make contributions to the institution's reserve account and specifies the criteria for a loan to qualify as a capital access loan.
(e) To qualify as a capital access loan, a loan shall:
(1) Be made to a small or medium-sized business or to a nonprofit organization;
(2) Be used by the business or nonprofit organization for any project, activity, or enterprise in Hawaii that fosters economic development; and
(3) Meet any other criteria provided by this chapter. [L 2000, c 290, pt of §2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 211D. Capital Access Program › 211D-4 Rulemaking authority.

§211D-4 Rulemaking authority.
(a) The department shall adopt rules relating to the implementation of the program and any other rules necessary to accomplish the purposes of this chapter. The rules may:
(1) Provide for criteria under which a certain line of credit issued by an eligible financial institution to a small or medium-sized business or nonprofit organization qualifies to participate in the program; and
(2) Authorize a consortium of financial institutions to participate in the program subject to common underwriting guidelines.
(b) To qualify for participation in the program, a line of credit shall:
(1) Be an account at a financial institution under which the financial institution agrees to lend money to a person from time to time to finance one or more projects, activities, or enterprises that are authorized by this chapter; and
(2) Contain the same restrictions, to the extent possible, that are placed on a capital access loan that is not a line of credit. [L 2000, c 290, pt of §2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 211D. Capital Access Program › 211D-5 Provisions relating to capital access loan.

§211D-5 Provisions relating to capital access loan.
(a) Except as otherwise provided by this chapter, the department may not determine the recipient, amount, or interest rate of a capital access loan or the fees or other requirements related to the loan.
(b) A loan is not eligible to be enrolled under this chapter if the loan is for:
(1) Construction or purchase of residential housing;
(2) Simple real estate investments, excluding the development or improvement of commercial real estate occupied by the borrower's business or organization;
(3) Refinancing of existing loans not originally enrolled under this chapter; or
(4) Inside bank transactions, as defined by the department.
(c) The borrower of a capital access loan shall apply the loan to working capital or to the purchase, construction, or lease of capital assets, including buildings and equipment used by the business or nonprofit organization. Working capital uses include the cost of exporting, accounts receivable, payroll, inventory, and other financing needs of the business or organization.
(d) A capital access loan may be sold on the secondary market under conditions as may be determined by the department.
(e) When enrolling a loan in the program, a participating financial institution may specify an amount to be covered under the program that is less than the total amount of the loan. [L 2000, c 290, pt of §2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 211D. Capital Access Program › 211D-6 Reserve account.

§211D-6 Reserve account.
(a) On approval by the department and after entering into a participation agreement with the department, a participating financial institution making a capital access loan shall establish a reserve account. The reserve account shall be used by the institution only to cover any losses arising from a default of a capital access loan made by the institution under this chapter or as otherwise provided by this chapter.
(b) When a participating financial institution makes a loan enrolled in the program, the institution shall require the borrower to pay to the institution a fee in an amount that is not less than two per cent but not more than three per cent of the principal amount of the loan, which the financial institution shall deposit in the reserve account. The institution shall also deposit in the reserve account an amount equal to the amount of the fee received by the institution from the borrower under this subsection. The institution may recover from the borrower all or part of the amount the institution is required to pay under this subsection in any manner agreed to by the institution and borrower.
(c) For each capital access loan made by a financial institution, the institution shall certify to the department, within the period prescribed by the department, that the institution has made a capital access loan, the amount the institution has deposited in the reserve account, including the amount of fees received from the borrower, and, if applicable, that the borrower is an eligible enterprise zone business located in an area designated as an enterprise zone under chapter 209E.
(d) On receipt of a certification made under subsection (c), the department shall deposit in the institution's reserve account for each capital access loan made by the institution:
(1) An amount equal to the amount deposited by the institution for each loan if the institution:
(A) Has assets of more than $1,000,000,000; or
(B) Has previously enrolled loans in the program that in the aggregate are more than $2,000,000;
(2) An amount equal to one hundred fifty per cent of the total amount deposited under subsection (b) for each loan if the institution is not described by paragraph (1); or
(3) Notwithstanding paragraphs (1) and (2), an amount equal to two hundred per cent of the total amount deposited under subsection (b) for each loan if:
(A) The borrower is an eligible enterprise zone business located in an area designated as an enterprise zone under chapter 209E; or
(B) The borrower is a small or medium-size business or a nonprofit organization that operates or proposes to operate a child care facility or adult residential care home. [L 2000, c 290, pt of §2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 211D. Capital Access Program › 211D-7 Limitations on state contribution to reserve account.

§211D-7 Limitations on state contribution to reserve account.
(a) The amount deposited by the department into a participating financial institution's reserve account for any single loan recipient may not exceed $100,000 during a three-year period.
(b) The maximum amount the department may deposit into a reserve account for each capital access loan made under this chapter is the lesser of $35,000 or an amount equal to:
(1) Eight per cent of the loan amount if:
(A) The borrower is an eligible enterprise zone business located in an area designated as an enterprise zone under chapter 209E; or
(B) The borrower is a small or medium-size business or a nonprofit organization that operates or proposes to operate a child care facility or adult residential care home; or
(2) Six per cent of the loan amount for any other borrower. [L 2000, c 290, pt of §2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 211D. Capital Access Program › 211D-8 State's rights with respect to reserve account.

§211D-8 State's rights with respect to reserve account.
(a) All of the money in a reserve account established under this chapter is property of the State.
(b) The State is entitled to earn interest on the amount of contributions made by the department, borrower, and institution to a reserve account under this chapter. The department shall withdraw monthly or quarterly from a reserve account the amount of the interest earned by the State. The department shall deposit the amount withdrawn under this section into the fund.
(c) If the amount in a reserve account exceeds an amount equal to thirty-three per cent of the balance of the financial institution's outstanding capital access loans, the department may withdraw the excess amount and deposit the amount in the fund. A withdrawal of money authorized under this subsection may not reduce an active reserve account to an amount that is less than $200,000.
(d) The department shall withdraw from the institution's reserve account the total amount in the account and any interest earned on the account and deposit the amount in the fund when:
(1) A financial institution is no longer eligible to participate in the program or a participation agreement entered into under this chapter expires without renewal by the department or institution; and
(2) The financial institution has no outstanding capital access loans. [L 2000, c 290, pt of §2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 211D. Capital Access Program › 211D-9 Annual report.

§211D-9 Annual report.
A participating financial institution shall submit an annual report to the department. The report shall:
(1) Provide information regarding outstanding capital access loans, capital access loan losses, and any other information on capital access loans the department considers appropriate;
(2) State the total amount of loans for which the department has made a contribution from the fund under this chapter;
(3) Include a copy of the institution's most recent financial statement; and
(4) Include information regarding the type and size of businesses and nonprofit organizations with capital access loans. [L 2000, c 290, pt of §2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 211D. Capital Access Program › 211D-10 Reports; audits.

§211D-10 Reports; audits.
(a) The department shall submit to the legislature an annual status report on the program's activities.
(b) The financial transactions of the fund are subject to audit by the auditor. [L 2000, c 290, pt of §2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 211E. Hawaii Innovation Development Program › 211E-1 Definitions.

§211E-1 Definitions.
As used in this chapter:
"Financing" means furnishing risk capital to persons for use in the development or exploitation of specific inventions or products.
"Innovation" means any new product or invention.
"Invention" means any new process or technique for which a patent has been granted; or which in the opinion of the advisory committee, the chance of obtaining a patent thereon is favorable.
"Inventor" means any resident taxpayer subject to the jurisdiction of the laws of the State of Hawaii who develops an innovation.
"Loan" means financing in which the department of business, economic development, and tourism shall prescribe the form of participation under section 211E-2(b) to carry out the purposes of this chapter.
"Product" means any product, device, technique, or process, which is or may be exploitable commercially. This term shall not refer to pure research but shall be construed to apply to such products, devices, techniques, or processes which have advanced beyond the theoretical stage and are readily capable of being, or have been reduced to practice.
"Venture" means, without limitation, any contractual arrangement with any person whereby the investor with risk capital obtain rights from or in an invention or product or proceeds therefrom in exchange for financing such persons. [L Sp 1981 1st, c 8, pt of §2; am L 1987, c 242, §3 and c 336, §7; am L 1990, c 293, §8]
Note
Section 211E-2 referred to in the definition of "loan" is repealed.
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 211E. Hawaii Innovation Development Program › 211E-3 Venture capital information center; establishment; duties.

§211E-3 Venture capital information center; establishment; duties.
(a) The department of business, economic development, and tourism shall establish a venture capital information center to promote the development and exploitation of inventions and new products that have direct economic benefits for Hawaii and to facilitate the bringing together of investors desiring to invest money in new products and inventions with inventors and developers of new products seeking financing.
(b) Among other services, the center shall:
(1) Develop a promotional program to generate and attract venture capital to Hawaii;
(2) Provide interested investors with information on prospective inventors, new products, innovations, and inventions;
(3) Maintain a listing of prospective investors, inventors, and developers of new products; and
(4) Provide a referral service to bring together investors with venture capital and inventors or developers seeking financing. [L Sp 1981 1st, c 8, pt of §2; am L 1987, c 336, §7; am L 1990, c 293, §8]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 211E. Hawaii Innovation Development Program › 211E-4 Advisory committee.

§211E-4 Advisory committee.
The director of business, economic development, and tourism may appoint an advisory committee of not more than seven members to advise the director on applications for loans from the [Hawaii innovation development fund]. The members shall serve without pay but may be compensated for travel and per diem. [L Sp 1981 1st, c 8, pt of §2; am L 1987, c 336, §7; am L 1990, c 293, §8]
Note
The Hawaii innovation development fund referred to in text is repealed.
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 212. Foreign-Trade Zones › 212-1 "Act of Congress" defined.

§212-1 "Act of Congress" defined.
As used in this chapter, "Act of Congress" means the act of Congress approved June 18, 1934, entitled, "An act to provide for the establishment, operation, and maintenance of foreign-trade zones in ports of entry of the United States, to expedite and encourage foreign commerce, and for other purposes", and the amendments thereto. [L 1963, c 7, §2; Supp, §98T-2; HRS §212-1]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 212. Foreign-Trade Zones › 212-2 "Public corporation" defined.

§212-2 "Public corporation" defined.
As used in this chapter, "public corporation" means the State of Hawaii, any political subdivision thereof, and municipality therein, or any public agency of the State. [L 1963, c 7, §3; Supp, §98T-3; HRS §212-2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 212. Foreign-Trade Zones › 212-3 Designation and approval of governor for application.

§212-3 Designation and approval of governor for application.
Any public corporation which is duly designated and approved by the governor may make application to the Foreign-Trade Zones Board of the United States for the purpose of establishing, operating, and maintaining a foreign-trade zone in accordance with the Act of Congress in any port of entry in the State. [L 1963, c 7, §4; Supp, §98T-4; HRS §212-3]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 212. Foreign-Trade Zones › 212-4 Grant of authority to governor; rules and regulations.

§212-4 Grant of authority to governor; rules and regulations.
The governor may do all things necessary and proper to carry into effect the establishing, maintaining, and operating of foreign-trade zones, and make such rules and regulations concerning the operation, maintenance, and policing of the zone as may be necessary to comply with the Act of Congress. All rules and regulations established under this chapter shall be adopted and promulgated pursuant to chapter 91. [L 1963, c 7, §5; Supp, §98T-5; HRS §212-4]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 212. Foreign-Trade Zones › 212-5 Setting aside public lands; lease, license, and permits.

§212-5 Setting aside public lands; lease, license, and permits.
Notwithstanding any law to the contrary, the governor may set aside public lands to a public corporation for the purpose of this chapter and the corporation may, by negotiation and without recourse to public auction, lease, rent, or let the lands or any part thereof or any interest therein, including concessions and concession space, by lease, license, or permit on the terms and conditions set by the corporation. [L 1963, c 7, §6; Supp, §98T-6; HRS §212-5]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 212. Foreign-Trade Zones › 212-5.5 Foreign-trade zone; jurisdiction.

§212-5.5 Foreign-trade zone; jurisdiction.
Anything to the contrary notwithstanding, the department of business, economic development, and tourism shall have jurisdiction and administrative authority over the area in the vicinity of Piers 1 and 2 currently being used as a foreign-trade zone. This area is defined as all of parcels 2 and 3-A of the Forrest Avenue subdivision, as shown on the map filed in the bureau of conveyances of the State of Hawaii, as file plan 2335, and lot A-1, as shown on map 2, filed in the office of the assistant registrar of the land court of the State of Hawaii with land court application 1328; provided that all existing easements affecting and appurtenant to the parcels to be deleted from the Kakaako community development district boundaries shall not be affected by this change. [L 2006, c 165, §2]
Cross References
Honolulu Harbor, Piers 1 and 2; jurisdiction, see §266-1.5.
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 212. Foreign-Trade Zones › 212-6 Establishment, operation, and maintenance of zone.

§212-6 Establishment, operation, and maintenance of zone.
Any public corporation authorized pursuant to this chapter to make an application and whose application is granted pursuant to the terms of the Act of Congress may establish, operate, and maintain the foreign-trade zone:
(1) Subject to the conditions and restrictions of the Act of Congress; [and]
(2) Under the rules and regulations, and for the period of time that may be prescribed by the foreign-trade zones board established by the Act of Congress to carry out the provisions of the Act. [L 1963, c 7, §7; Supp, §98T-7; HRS §212-6]
Attorney General Opinions
Application of various state taxes to foreign-trade zone activities. Att. Gen. Op. 64-52.
Hawaii's general excise tax and use tax are not expressly preempted by the federal Foreign-Trade Zones Act of 1934, and Congress has not assumed exclusive regulatory powers in foreign-trade zones such that the State is preempted from imposing taxes on all activity within a foreign-trade zone. Ultimately, whether a state tax can be applied to a particular activity within a foreign-trade zone depends on whether the tax conflicts with the purposes and objectives of the federal Act. Att. Gen. Op. 21-01.
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 212. Foreign-Trade Zones › 212-7 Powers; indemnity or assurance to the United States and deposits with United States.

§212-7 Powers; indemnity or assurance to the United States and deposits with United States.
If authorized to establish, operate, and maintain a foreign-trade zone, a public corporation may, in addition to its other powers:
(1) Provide for such indemnity or assurance to the United States or its agencies as they may request; [and]
(2) Deposit such sums of money with the United States as the United States or its agencies may request, providing the money is available therefor by direct appropriation or otherwise. [L 1963, c 7, §8; Supp, §98T-8; HRS §212-7]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 212. Foreign-Trade Zones › 212-8 Exemption from taxes.

§212-8 Exemption from taxes.
Notwithstanding any law to the contrary, sales of all products which are categorized as privileged foreign merchandise, nonprivileged foreign merchandise, domestic merchandise, or zone-restricted merchandise, and which are admitted into a foreign-trade zone, as more specifically set forth in the Act of Congress, and any rules and regulations promulgated thereunder, made directly to any common carrier in interstate or foreign commerce, or both, whether ocean-going or air, for consumption out-of-state by the crew or passengers on the shipper's vessels or airplanes, or for use out-of-state by the vessels or airplanes, shall be exempt from those taxes imposed under chapters 237, 238, 243, 244D, and 245. [L 1967, c 143, §1; HRS §212-8; am L 1985, c 16, §1; am L 1995, c 81, §1]
Attorney General Opinions
Hawaii's general excise tax and use tax are not expressly preempted by the federal Foreign-Trade Zones Act of 1934, and Congress has not assumed exclusive regulatory powers in foreign-trade zones such that the State is preempted from imposing taxes on all activity within a foreign-trade zone. Ultimately, whether a state tax can be applied to a particular activity within a foreign-trade zone depends on whether the tax conflicts with the purposes and objectives of the federal Act. Att. Gen. Op. 21-01.
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 212. Foreign-Trade Zones › 212-9 Special fund.

§212-9 Special fund.
There is established in the state treasury a fund to be known as the foreign-trade zones special fund. All fees or other moneys collected under this chapter shall be deposited in this fund. All moneys in the fund are hereby appropriated for the purposes of and shall be expended by the public corporation for the operation, capital improvement, and maintenance of the zone. [L 1971, c 93, §2; am L 1995, c 81, §2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 212. Foreign-Trade Zones › 212-10 Personnel.

§212-10 Personnel.
Permanent employees currently not in civil service and who are employed by the State to operate and maintain the foreign trade zone in the department of business, economic development, and tourism shall be converted to permanent civil service status within the meaning of chapter 76 without the necessity of examination and shall be accorded all the rights, benefits, and privileges attributable thereto. Such rights and privileges shall include seniority, prior service credit, vacation and sick leave credits, and other benefits and privileges accorded employees with civil service status. Employees so converted shall not suffer a reduction in their pay rate. [L 1971, c 195, §1; am L 1987, c 336, §7; am L 1990, c 293, §8; am L 2000, c 253, §150]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 213. Research and Development Industry Promotion Program › 213-1 Research and development industry promotion program and objectives.

§213-1 Research and development industry promotion program and objectives.
There shall be in the department of business, economic development, and tourism a program known as the research and development industry promotion program to be placed under the supervision of the director of the department and to work toward the achievement of the following objectives:
(1) The encouragement by direct contact and otherwise, of research and development and science-related industrial firms to locate and conduct operations in Hawaii.
(2) The encouragement of federal and other agencies to support research and development activities in Hawaii.
(3) The preparation and dissemination of scientific and technological information to be used to attract research and development industry and scientific projects to Hawaii.
(4) The promotion of conferences, symposia, seminars, and institutes in research and development and science and technology areas.
(5) The preparation and dissemination of information on the State's resources to assure fuller participation in national research and development and science-related programs.
(6) The provision of staff support to the governor's committee on science and technology and other appropriate official bodies that may be engaged in science-related programs.
In the accomplishment of the foregoing objectives, personnel engaged in the research and development industry promotion program shall cooperate with such state offices as may be established to coordinate federal-state relations. [L 1965, c 210, §2; Supp, §98V-2; HRS §213-1; am L 1987, c 336, §7; am L 1990, c 293, §8]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 213. Research and Development Industry Promotion Program › 213-2 Personnel.

§213-2 Personnel.
The director of business, economic development, and tourism shall select and designate qualified personnel as the director may deem essential to effectuate the objectives of the research and development industry promotion program. [L 1965, c 210, §3; Supp, §98V-3; HRS §213-2; gen ch 1985; am L 1987, c 336, §7; am L 1990, c 293, §8]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 214. Grants-in-Aid for County Capital Improvement Projects › 214-1 State grants-in-aid system established.

§214-1 State grants-in-aid system established.
There shall be a state system of grants-in-aid to the several counties for the purpose of encouraging, stimulating, and assisting the economic development of the several counties by capital improvement projects which are a part of the general plan of the State, or which will reasonably strengthen the economic development of the counties. [L 1965, c 234, §2; Supp, §138F-2; HRS §214-1]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 214. Grants-in-Aid for County Capital Improvement Projects › 214-2 Funds, allotment, and expenditure.

§214-2 Funds, allotment, and expenditure.
Money allotted under this chapter by the State shall be available to the several counties; provided that no part of state or county moneys shall be expended for capital improvement projects that are not a part of the general plan of the State or that will not reasonably contribute to the economic development of the county. The determination of:
(1) The extent of participation by the State; and
(2) What capital improvement projects shall reasonably contribute to the economic development of a county,
shall be made by the governor, taking into consideration the State's goal for specific segments of its general plan and the financial position of the county. [L 1965, c 234, §3; Supp, §138F-3; HRS §214-2; am L 1973, c 210, §2; am L 2017, c 12, §29]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 214. Grants-in-Aid for County Capital Improvement Projects › 214-3 Determination of projects.

§214-3 Determination of projects.
The executive officer of each of the several counties, with the advice of the county or city council as the case may be, shall identify the project or projects to be undertaken, in the executive officer's respective county, under this program subject to approval by the governor. All approved projects shall be in agreement with the state general plan or must contribute reasonably to the economic development of the county. These projects shall be approved on the basis of relative need on a statewide basis. [L 1965, c 234, §4; Supp, §138F-4; HRS §214-3; gen ch 1985]
Revision Note
Reference to county council substituted for "board of supervisors" to conform to county charters pursuant to §23G-15.
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 214. Grants-in-Aid for County Capital Improvement Projects › 214-4 Rules.

§214-4 Rules.
The department of budget and finance and the office of planning and sustainable development may adopt rules and regulations necessary and convenient for the administration and implementation of this chapter subject to approval by the governor. [L 1965, c 234, §5; Supp, §138F-5; HRS §214-4; am L 1987, c 336, §8; am L 1996, c 299, §3; am L 2021, c 153, §8]
Cross References
Rules, see chapter 91.
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 219. Aquaculture Loan Program › 219-1 Findings and purpose.

§219-1 Findings and purpose.
The legislature finds that:
(1) Aquaculture is a potentially viable industry for the State.
(2) Conventional financial institutions traditionally do not provide loans in the initiating stages for the establishment of new industries.
(3) No present state agency or program has the authority to financially assist an enterprise engaged in aquaculture.
(4) The State should initiate a loan program to assist aquaculture and the techniques of aquaculture as a new industry.
The purpose of this chapter is to establish a loan program to financially assist in the development of aquaculture in the State. [L 1971, c 181, pt of §1; ree L 1977, c 212, pt of §2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 219. Aquaculture Loan Program › 219-2 Definitions.

§219-2 Definitions.
As used in this chapter:
"Aquaculture" means the propagation, cultivation, or farming of aquatic plants and animals in controlled or selected environments for commercial purposes or authorized stock enhancement purposes.
"Aquaculture sustainable projects" means projects that improve the operation's viability but are not directly tied to aquaculture production. Projects may include but are not limited to photovoltaic energy, hydroelectric power, wind power generation, methane generation, food safety, product traceability, biodiesel production, and ethanol production.
"Board" means the board of agriculture of the department of agriculture.
"Chairperson" means the chairperson of the board of agriculture.
"Cooperative" means a nonprofit association of [aquaculturists] organized under chapter 421.
"Department" means the department of agriculture.
"Qualified aquaculturist" means a person, or association of persons, actively engaged in aquaculture farming, aquacultural produce processing, or aquacultural product development activities. [L 1971, c 181, pt of §1; am L 1977, c 212, pt of §2; am L 1997, c 159, §1; am L 2001, c 55, §8(1) and c 177, §3; am L 2008, c 209, §2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 219. Aquaculture Loan Program › 219-3 Hawaii aquaculture loan program.

§219-3 Hawaii aquaculture loan program.
There is established the Hawaii aquaculture loan program to be administered by the board of agriculture. [L 1971, c 181, pt of §1; ree L 1977, c 212, pt of §2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 219. Aquaculture Loan Program › 219-4 Funds; application of payments.

§219-4 Funds; application of payments.
(a) There is established a special fund to be known as the aquaculture loan revolving fund from which moneys shall be loaned by the department of agriculture under this chapter. The department, by its board of agriculture, may transfer moneys from the aquaculture loan revolving fund to the agricultural loan revolving fund, from which moneys shall be disbursed by the department pursuant to chapter 155, and may transfer moneys from that revolving fund to the aquaculture loan revolving fund for disbursement pursuant to this chapter; provided that:
(1) The amount of moneys transferred shall not exceed $1,000,000 for each revolving fund within the calendar year; and
(2) Twenty days prior to the convening of each regular session of the legislature, the department shall report to the legislature all transfers that were made between the aquaculture loan revolving fund and the agricultural loan revolving fund during the preceding calendar year and the balance of each revolving fund as of December 31 of each year.
(b) All interests and fees collected by the department shall be deposited in a loan reserve fund to the extent needed to carry on the operations of this program; any moneys surplus to these needs shall be transferred to the aquaculture loan revolving fund at the discretion of the department. All payments received on account of principal shall be credited to the loan revolving fund. [L 1971, c 181, pt of §1; ree L 1977, c 212, pt of §2; am L 1978, c 88, §1; am L 1979, c 137, §4; am L 1987, c 110, §2; am L 1989, c 347, §3; am L 1992, c 69, §3; am L 1995, c 11, §14; am L 1996, c 253, §4]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 219. Aquaculture Loan Program › 219-5 Powers; rules.

§219-5 Powers; rules.
(a) The department shall have the necessary powers to carry out the purposes of this chapter, including the following:
(1) Prescribe the qualifications for eligibility of applicants for loans;
(2) Establish preferences and priorities in determining eligibility for loans and loan repayment requirements;
(3) Establish the conditions, consistent with the purpose of this chapter, for the granting or for the continuance of a grant of a loan;
(4) Provide for inspection at reasonable hours of the plant facilities, books, and records of an enterprise that has applied for or has been granted a loan and require the submission of progress and final reports;
(5) Make loans for aquacultural products development, such as financing of plant construction, conversion, expansion, the acquisition of land for expansion, the acquisition of equipment, machinery, supplies, or materials or for the supplying of working capital, consistent with section 219-6;
(6) Secure loans by duly recorded first mortgages upon the following property within the State:
(A) Fee simple farm land;
(B) Leaseholds of farm land where the lease has an unexpired term at least two years longer than the term of the loan;
(C) Aquaculture products;
(D) Other chattels;
(E) A second mortgage when any prior mortgage does not contain provisions that might jeopardize the security position of the department or the borrower's ability to repay; and
(F) Written agreements, such as assignments of income;
(7) Administer the Hawaii aquaculture loan revolving fund and deposit into the fund all moneys received on account of principal;
(8) Include in its budget for subsequent fiscal periods amounts necessary to effectuate the purposes of this chapter;
(9) Insure loans made to qualified aquaculturists by private lenders under sections 219-7 and 219-8; provided that at no time shall the aggregate amount of the State's liability, contingent or otherwise, on these loans exceed $1,000,000;
(10) Participate in loans made to qualified aquaculturists by private lenders under section 219-8;
(11) Make direct loans to qualified aquaculturists as provided under section 219-9;
(12) Establish interest rates chargeable by the State for direct loans and by private lenders for insured and participation loans; and
(13) Maintain a proper reserve in the aquaculture loan revolving fund to guarantee payment of loans insured under sections 219-7 and 219-8.
(b) The chairperson may approve loans, where the requested amount, plus any principal balance on existing loans to the applicant, does not exceed $50,000 of state funds.
(c) The department shall adopt rules pursuant to chapter 91 to effectuate this section. [L 1971, c 181, pt of §1; am L 1977, c 212, pt of §2; am L 1978, c 88, §2; am L 1979, c 137, §2; am L 1995, c 76, §2; am L 1997, c 159, §2; am L 2002, c 16, §8(1); am L 2021, c 136, §2]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 219. Aquaculture Loan Program › 219-7 Loans insured by the department.

§219-7 Loans insured by the department.
(1) The department of agriculture may insure up to ninety per cent of the principal balance of a loan, plus interest due thereon, made to a qualified aquaculturist by a private lender who is unable otherwise to lend the applicant sufficient funds at reasonable rates;
(2) Loans insured under this section shall be limited by the provisions of section 219-6;
(3) Interest charged on an insured loan made under the provisions of this section shall be determined by the board;
(4) When the application for an insured loan has been approved by the department, the department shall issue to the lender a guaranty for that percentage of the loan on which it insures payment of principal and interest. The lender shall collect all payments from the borrower and otherwise service the loan;
(5) In return for the department's guaranty, the lender shall remit a one-time insurance fee of two per cent on the principal amount of the insured portion of the loan, at the time the loan is booked, except that:
(A) On loans of $75,000 or less with a maturity exceeding twelve months, a reduced fee of one per cent; and
(B) On all guaranteed loans with a maturity of twelve months or less, a reduced fee of one per cent;
shall be paid.
This fee may be paid by the borrower as a cost for the loan;
(6) When any installment of principal and interest has been due for sixty days and has not been paid by the borrower, the department shall issue, on request of the lender, a check for the percentage of the overdue payment guaranteed, thereby acquiring a division of interest in the collateral pledged by the borrower in proportion to the amount of the payment. The department shall be reimbursed for any amounts so paid plus the applicable interest rate, where payment is collected from the borrower;
(7) Under conditions specified in rules of the department, the lender may request that a portion or all of the guaranteed percentage of the principal balance of the loan be converted to a participating share held by the department subject to this section;
(8) Should the lender deem that foreclosure proceedings are necessary to collect moneys due from the borrower, it shall so notify the department. Within thirty days of the notification, the department may request an assignment of the loan on payment in full to the lender of the principal balance and interest due. Foreclosure proceedings shall be held in abeyance in the interim; and
(9) The lender may reduce the percentage of the principal balance insured under this section at any time. [L 1977, c 212, pt of §2; am L 1995, c 79, §2; am L 2001, c 55, §8(2)]
2023 Hawaii Revised Statutes › Title 13. Planning and Economic Development › 219. Aquaculture Loan Program › 219-8 Participation in loans by the department.

§219-8 Participation in loans by the department.
(1) The department of agriculture may provide funds for a share, not to exceed ninety per cent, of the principal amount of a loan made to a qualified aquaculturist by a private lender who is unable otherwise to lend the applicant sufficient funds at reasonable rates where the qualified farmer is unable to obtain sufficient funds for the same purpose from the United States Department of Agriculture;
(2) Participation loans under this section shall be limited by the provisions of section 219-6 and the department of agriculture's share shall not exceed the maximum amounts specified therefor;
(3) Interest charged on the private lender's share of the loan shall not be more than the sum of two per cent above the lowest rate of interest charged by all state or national banks authorized to accept or hold deposits in the State on secured short term loans made to borrowers who have the highest credit rating with those banks;
(4) The private lender's share of the loan may be insured by the department up to ninety per cent of the principal balance of the loan, under section 219-7;
(5) When a participation loan has been approved by the department, its share shall be paid to the participating private lender for disbursement to the borrower. The private lender shall collect all payments from the borrower and otherwise service the loan;
(6) Out of interest collected, the private lender may be paid a service fee to be determined by the department which fee shall not exceed one per cent of the unpaid principal balance of the loan; provided that this fee shall not be added to any amount which the borrower is obligated to pay;
(7) The participating private lender may take over a larger percentage or the full principal balance of the loan at any time that it has determined, to the satisfaction of the department, that the borrower is able to pay any increased interest charges resulting; and
(8) Security for participation loans shall be limited by section 219-5(a)(6). All collateral documents shall be held by the private lender. Division of interest in collateral received shall be in proportion to participation by the department and the private lender. [L 1977, c 212, pt of §2; am L 1989, c 261, §11; am L 1993, c 350, §10; am L 1997, c 258, §13; am L 2001, c 55, §8(3)]