HI HB701

Repeals Chapter 211G, Hawaii Revised Statutes, which established the Capital Formation Revolving Fund.

The fund was created to provide a mechanism for the Hawaii Strategic Development Corporation to mobilize equity capital and expand commerce through tax credits.

The fund never became operational because the required tax credits and borrowing capacity were never enacted into legislation.

An auditor's 2014 review found the fund was inactive, did not serve its intended purpose, and did not meet statutory criteria for a revolving fund, recommending repeal.

The repeal adopts the auditor's recommendations from report number 14-13 and takes effect upon approval.