STAND. COM. REP. NO. 65

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1646
                                     H.D. 1




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

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 1646 entitled: 

     "A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS
     TO ASSIST VERTICIL INTERNATIONAL, INC., ESTABLISH A
     MANUFACTURING FACILITY,"

begs leave to report as follows:

     The purpose of this bill is to authorize the issuance of
special purpose revenue bonds in an amount not to exceed
$20,000,000 to assist Verticil International in acquiring,
constructing, and starting up a manufacturing facility to
fabricate an electronic switching system.

     The Department of Business, Economic Development, and
Tourism and Verticil Communications, Inc. provided testimony in
support of this bill.

     Your Committee has amended this bill by changing the
authorization sum of the special purpose revenue bond to $1 to
facilitate further discussion on the financial aspects of the
bill.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 1646, as amended herein, and
recommends that it pass Second Reading in the form attached

 
 
 
                                 STAND. COM. REP. NO. 65
                                 Page 2

 
hereto as H.B. No. 1646, H.D. 1, and be referred to the Committee
on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair