HI HB366

Establishes a state private investment fund governed by a separate fund board with six members, including three appointed based on venture capital expertise and three ex-officio members from the corporation, employees' retirement system, and fund management.

Creates a fund-of-funds model based on Utah's program to invest in venture capital firms rather than direct investments in companies, with a 30% target for Hawaii-based businesses and limits of 10% per single fund and 20% capital commitment per fund.

Authorizes the Hawaii Strategic Development Corporation to issue and transfer tax credits as collateral and guarantees for fund investments, with tax credits becoming refundable and available for use against income taxes beginning July 1 of specified years.

Requires fund investments to be in high-quality venture capital entities with experienced managers capable of advising entrepreneurs and facilitating follow-on investments, with no direct investments permitted and limits on seed capital investments.

Directs that fund returns exceeding operating costs, indebtedness, and investor equity interests be deposited into the general fund, while protecting trade secrets and confidential business information from public disclosure.