STAND. COM. REP. NO. 333

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1744
                                     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 Consumer Protection and Commerce, to which
was referred H.B. No. 1744, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO COMMUNITY DEVELOPMENT
     FINANCIAL INSTITUTIONS,"

begs leave to report as follows:

     The purpose of this bill is to appropriate funds, with a
requirement for matching funds, for the development of community
development financial institutions.  The bill describes community
development financial institutions (CDFIs) as private for-profit
and nonprofit financial institutions that provide financial
services to distressed geographic areas and populations that are
underserved by conventional lenders and investors.

     Testimony in support of this measure was received from the
Department of Hawaiian Homelands, Na Po'e Kokua, and the Nation
of Hawaii.

     Your Committee recognizes the far-reaching benefits that
CDFIs can offer in the way of economic revitalization and
community development, particularly for our most socio-
economically distressed communities, and therefore encourages the
development of such institutions.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and

 
 
 
                                 STAND. COM. REP. NO. 333
                                 Page 2

 
purpose of H.B. No. 1744, H.D. 1, and recommends that it be
referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair