SB 3084: Hawaii Technology Development Corporation; Matching Funds; Research and Development Grants

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 Hawaii's research and development ecosystem requires flexible funding to leverage federal investment opportunities.  Federal and non-federal programs administered by the United States Department of Energy, National Oceanic and Atmospheric Administration, United States Department of War, advanced research projects agencies, and other agencies and organizations offer competitive awards to advance high‑impact technologies.  These awards often require matching funds from state or private sources as a condition of participation.

     The legislature further finds that existing law governing technology research and development loans and grants currently authorizes the Hawaii technology development corporation to provide grants to businesses applying for federal small business innovation research program or small business technology transfer program grants, but does not expressly permit the use of state funds to support applicants for other federal research and development grant programs or to meet matching requirements for those awards.

     The purpose of this Act is to expand the allowable uses of Hawaii technology development corporation grant funds to include providing grants to any business that applies for a federal research and development grant or receives a federal research and development award or contract that requires non-federal funding match, with certain exceptions.

     SECTION 2.  Section 206M-15, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The development corporation may provide grants to any business in Hawaii that:

     (1)  Receives a federal small business innovation research phase I or II award or contract from any participating federal agency, up to fifty per cent of the amount of the federal award or contract;

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

     (3)  Receives a federal small business innovation research phase III or small business technology transfer program phase III award or contract, up to fifty per cent of the amount of the award or contract funded by private sector or government sources outside of the program; [or]

     (4)  Applies for a [small business innovation research federal grant or a small business technology transfer program federal grant,] federal research and development grant, in an amount not to exceed $3,000[,]; or

     (5)  Receives a federal research and development award or contract from a participating federal agency that requires a non‑federal funding match on a matching basis, in an amount not to exceed fifty per cent of the amount of the required non‑federal share; provided that no grant shall be awarded pursuant to this paragraph to a business with a primary purpose of developing or testing weapons or munitions,

subject to the availability of funds."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

Hawaii Technology Development Corporation; Matching Funds; Research and Development Grants

Description:

Expands the allowable uses of Hawaii Technology Development Corporation grant funds to include providing grants to any business that applies for a federal research and development grant or receives a federal research and development award or contract that requires non-federal funding match, with certain exceptions.  Effective 7/1/2050.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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 Hawaii's research and development ecosystem requires flexible funding to leverage federal investment opportunities.  Federal and non-federal programs administered by the United States Department of Energy, National Oceanic and Atmospheric Administration, United States Department of War, advanced research projects agencies, and other agencies and organizations offer competitive awards to advance high‑impact technologies.  These awards often require matching funds from state or private sources as a condition of participation.

     The legislature further finds that section 206M-15, Hawaii Revised Statutes, governing technology research and development loans and grants, currently authorizes the Hawaii technology development corporation to provide grants to businesses applying for federal small business innovation research or small business technology transfer grants, but does not expressly permit the use of state funds to support applicants for other federal research and development grant programs or to meet matching requirements for those awards.

     The purpose of this Act is to expand the allowable uses of funds under section 206M-15, Hawaii Revised Statutes, to include providing grants to applicants for qualifying federal research and development awards and matching funds for recipients of those awards and related contracts.

     SECTION 2.  Section 206M-15, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The development corporation may provide grants to any business in Hawaii that:

     (1)  Receives a federal small business innovation research phase I or II award or contract from any participating federal agency, up to fifty per cent of the amount of the federal award or contract;

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

     (3)  Receives a federal small business innovation research phase III or small business technology transfer program phase III award or contract, up to fifty per cent of the amount of the award or contract funded by private sector or government sources outside of the program; [or]

     (4)  Applies for a [small business innovation research federal grant or a small business technology transfer program federal grant,] federal research and development grant, in an amount not to exceed $3,000[,]; or

     (5)  Receives a federal research and development award or contract from a participating federal agency that requires a non‑federal funding match on a matching basis, in an amount not to exceed fifty per cent of the amount of the required non‑federal share,

subject to the availability of funds."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

Hawaii Technology Development Corporation; Matching Funds; Research and Development Grants

Description:

Expands the allowable uses of Hawaii Technology Development Corporation grant funds to include providing grants to applicants for qualifying federal research and development awards and matching funds for recipients of those awards and related contracts.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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 Hawaii's research and development ecosystem requires flexible funding to leverage federal investment opportunities.  Federal and non-federal programs administered by the Advanced Research Projects Agency, United States Department of Energy, National Oceanic and Atmospheric Administration, United States Department of Defense, and other agencies and organizations offer competitive awards to advance high‑impact technologies.  These awards often require matching funds from state or private sources as a condition of participation.

     The legislature further finds that section 206M-15, Hawaii Revised Statutes, currently authorizes the Hawaii technology development corporation to provide grants to businesses applying for federal small business innovation research or small business technology transfer awards, but does not expressly permit the use of state funds to support applicants for other federal research and development grant programs or to meet matching requirements for those awards.

     The purpose of this Act is to expand the allowable uses of funds under section 206M-15, Hawaii Revised Statutes, to include providing grants to applicants for qualifying federal research and development awards and matching funds for recipients of those awards and related contracts.

     SECTION 2.  Section 206M-15, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The development corporation may provide grants to any business in Hawaii that:

     (1)  Receives a federal small business innovation research phase I or II award or contract from any participating federal agency, up to fifty per cent of the amount of the federal award or contract;

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

     (3)  Receives a federal small business innovation research phase III or small business technology transfer program phase III award or contract, up to fifty per cent of the amount of the award or contract funded by private sector or government sources outside of the program; [or]

     (4)  Applies for a [small business innovation research federal grant or a small business technology transfer program federal grant,] federal research and development grant, in an amount not to exceed $3,000[,]; or

     (5)  Receives a federal research and development award or contract from a United States government agency that requires a non‑federal match on a matching basis, in an amount not to exceed fifty percent of the amount of the required non‑federal share,

subject to the availability of funds."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Hawaii Technology Development Corporation; Matching Funds; Research and Development Grants

Description:

Expands the allowable uses of Hawaii Technology Development Corporation grant funds to include providing grants to applicants for qualifying federal research and development awards and matching funds for recipients of those awards and related contracts.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 2973

Honolulu, Hawaii

RE:     S.B. No. 3084

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 3084, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII TECHNOLOGY DEVELOPMENT CORPORATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to support the State's small businesses and make more businesses eligible for federal grants by expanding the scope of grants that the Hawaii Technology Development Corporation may provide.

     Specifically, the measure amends section 206M-15, Hawaii Revised Statutes, to authorize the Hawaii Technology Development Corporation to provide grants to any business in Hawaii that:

     (1)  Applies for a federal research and development grant, in an amount not to exceed $3,000; or

     (2)  Receives a federal research and development award or contract from a participating federal agency that requires a non‑federal funding match on a matching basis, in an amount not to exceed fifty percent of the amount of the required non‑federal share.

     Your Committee received written comments in support of this measure from Department of Business, Economic Development, and Tourism; Hawaii Technology Development Corporation; Nalu Scientific, LLC; Oceanit; Simonpietri Enterprises LLC; Aloha Shoyu Company, Ltd.; Holomua Collaborative; Chamber of Commerce Hawaii; Hawaii Innovation, Inc.; CivicNexus; Malolo Enterprises, Inc; Neuromuse LLC; Hawaii Ocean Power Solutions LLC; WaiHome; and one individual.

     Your Committee recognizes that many federal research and development grants require grant recipients to receive matching funds from state or other non-federal sources.  Your Committee also recognizes that, although section 206M-15, Hawaii Revised Statutes, currently authorizes the Hawaii Technology Development Corporation to provide grants to businesses applying for federal small business innovation research or small business technology transfer grants, the statute does not expressly authorize the provision of state grants to support applicants for other federal research and development grants or the recipients of other federal awards or contracts that have matching fund requirements.  Your Committee believes that this measure's amendments to section 206M‑15, Hawaii Revised Statutes, will help the State's qualifying small businesses obtain much-needed funding.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3084, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

STAND. COM. REP. NO. 2241

Honolulu, Hawaii

RE:     S.B. No. 3084

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Economic Development and Tourism, to which was referred S.B. No. 3084 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII TECHNOLOGY DEVELOPMENT CORPORATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to expand the allowable uses of Hawaii Technology Development Corporation grant funds to include providing grants to applicants for qualifying federal research and development awards and matching funds for recipients of those awards and related contracts.

     Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaiʻi Technology Development Corporation; Chamber of Commerce Hawaii; Simonpietri Enterprises LLC; Hawaii Food Industry Association; Oceanit Laboratories, Inc.; and Maui Chamber of Commerce.

     Your Committee finds that federal research grants, including the Small Business Innovation Research and Small Business Technology Transfer programs, are highly competitive and bring significant external capital and technical validation into the State.  In addition to federal funding, companies often require supplemental state-level support to successfully compete for awards and advance projects toward commercialization.  Your Committee further finds that other states have demonstrated that leveraging state funds to match federal research dollars accelerates commercialization, job creation, and the development of strategic sectors such as renewable energy technology, biotech, and ocean sciences.  This measure aligns the State with best practices in technology-based economic development and strengthens the State's ability to attract and retain high-potential technology companies and entrepreneurs.

     Your Committee has amended this measure by:

     (1)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3084, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3084, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,