STAND. COM. REP. NO. 991

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1012
                                        H.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred H.B. No. 1012, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE CLEAN HAWAII FUND,"

begs leave to report as follows:
     
     The purpose of this measure is to reestablish the clean
Hawaii fund in Chapter 201, Hawaii Revised Statutes (HRS), to
continue the recycling and remanufacturing activities now under
the clean Hawaii center, which will sunset on June 30, 1999.

     Your Committee received testimony in support of this measure
from the Department of Business, Economic Development, and
Tourism, the University of Hawaii Environmental Center, and the
Sierra Club, Hawai`i Chapter.

     Your Committee finds that continuation of the clean Hawaii
fund is necessary in order to expend the balance of obligated and
encumbered federal and state special funds that remain, to
complete current programs and agreements, and to receive any
future funds in support of recycling business development
activities.

     Your Committee further finds that in the five years of
operations of the clean Hawaii center, only twelve percent of its
funding has come from state general or restricted funds, and
eighty-eight percent from other sources, including the Department
of Health's Environmental Management special fund, the
Environmental Protection Agency, and matching private sector

 
a                                                     HB1012 HD1
                                   STAND. COM. REP. NO. 991
                                   Page 2


funding.  Under this measure, the department will continue to
serve as a clearinghouse for funds from all sources, in support
of Hawaii's small recycling industry.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 1012, H.D. 1, and recommends that it pass Second
Reading and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
a                                                     HB1012 HD1