HI HB701

Repeals Chapter 211G, Hawaii Revised Statutes, which established the capital formation revolving fund under the Hawaii strategic development corporation.

The capital formation revolving fund was created to mobilize equity capital and expand commerce growth through tax credit issuance, but the necessary tax credits and borrowing capacity were never enacted into law.

An auditor review in 2014 (Report 14-13) found the fund had never been activated, no investment program existed, and the fund did not meet statutory criteria for a revolving fund.

Adopts the auditor's recommendation that Chapter 211G should be repealed since the fund was inactive and failed to serve its intended purpose.

Takes effect upon approval.