State grants for technology research and development

(a) All moneys necessary to carry out the purposes of this section shall be allocated by the legislature through appropriations out of the state general fund. The development corporation shall include in its budgetary request for the upcoming fiscal period, the amounts necessary to effectuate the purposes of this section. All moneys, interest charges, and other fees collected by the development corporation under this section shall be deposited to the credit of the state general fund. In making any expenditure under this section, the development corporation shall analyze each funding request to determine whether the project to be undertaken will be economically viable and beneficial to the State. (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, in an amount not to exceed $3,000, subject to the availability of funds. (c) The development corporation shall adopt rules pursuant to chapter 91 that: (1) Specify the qualifications for eligibility of grant applicants; (2) Establish priorities in determining eligibility in the event that insufficient funds are available to fund otherwise qualified applicants; and (3) Give preference to all qualified businesses receiving their first award in one fiscal year over multiple award grantees. The development corporation may adopt any other rules pursuant to chapter 91 necessary for the purposes of this section.