STAND. COM. REP. NO. 348________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1012
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Energy and Environmental Protection and
Economic Development and Business Concerns, to which was referred
H.B. No. 1012 entitled: 

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

beg leave to report as follows:

     The purpose of this bill is to continue many of the
activities of the Clean Hawaii Center to promote recycling and
remanufacturing business development activities in the State.
The Clean Hawaii Center and the Clean Hawaii Fund are both
scheduled to sunset on June 30, 1999.

     This bill:

     (1)  Establishes a permanent Clean Hawaii Fund (Fund) within
          the Department of Business, Economic Development, and
          Tourism (DBEDT).  Monies deposited into the Fund will
          be used to make grants and pay all fees and costs
          relative to marketing, promoting, and developing
          recycled products and local processing, manufacturing,
          or purchasing of recycled products.

     (2)  Transfers any unexpended or unencumbered balances
          remaining in the temporary Clean Hawaii Fund into the
          Fund instead of the Hawaii Capital Loan Program.

     The continuation of the Clean Hawaii Fund is necessary to
expend the balance of obligated and encumbered federal and state

 
 
                                 STAND. COM. REP. NO. 348________
                                 Page 2

 
special funds that remain for implementation to complete programs
and agreements.

     The Sierra Club, DBEDT, University of Hawaii Environmental
Center, and Hawaii Food Industry Association all submitted
favorable testimony.

     As affirmed by the records of votes of the members of your
Committees on Energy and Environmental Protection and Economic
Development and Business Concerns that are attached to this
report, your Committees are in accord with the intent and purpose
of H.B. No. 1012 and recommend that it pass Second Reading and be
referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Energy and
                                   Environmental Protection and
                                   Economic Development and
                                   Business Concerns,

                                   
                                   
                                   
                                   
______________________________     ______________________________
ROBERT N. HERKES, Chair            HERMINA M. MORITA, Chair