S.B. 2144 Summary

• Establishes a State Private Investment Fund as a limited partnership or limited liability company administered by the Hawaii Strategic Development Corporation to invest in venture capital and seed capital entities, modeled after Utah's successful Fund of Funds Program.

• Creates a Fund Board consisting of six members with expertise in venture capital investment and investment management, with authority to select and oversee venture capital investment allocation managers and establish investment priorities.

• Authorizes the Hawaii Strategic Development Corporation to issue tax credits (amount to be determined) backed by refundable, transferable contingent tax credits to secure loans or investments, with guarantees payable solely from fund revenues rather than general state funds.

• Establishes investment parameters requiring the State Private Investment Fund to invest in high-quality venture capital firms with experienced managers and demonstrated commitment to advising and mentoring entrepreneurs, with a 30 percent target for Hawaii-based business investments and limitations on individual fund allocations.

• Amends the Hawaii Community-Based Economic Development Revolving Fund to fund operations and personnel costs of the Community-Based Economic Development Program and Enterprise Zone Program, with remaining funds used for grants and loans.