STAND. COM. REP. NO. 66

                                 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 Economic Development and Business
Concerns, to which was referred H.B. No. 1744 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 Department of Hawaiian Homelands, the State Council of
Hawaiian Homestead Associations, a represesentative from the
Nation of Hawaii, and a private citizen submitted testimony in
support of this bill.

     Your Committee finds that making available loan funds and
investment capital is essential to economic revitalization,
especially in economically distressed communities.  Your
Committee further finds that community development financial
institutions provide such financial assistance to distressed
areas and populations.

     Your Committee has amended this bill by:

     (1)  Clarifying that Bank of America Community Development
          Bank has made a financial commitment to provide
          development and technical assistance funds to Na Po`e
          Kokua, Inc.; 

 
 
                                 STAND. COM. REP. NO. 66
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     (2)  Stating that Bank of America Community Development
          Bank, and not the federal goverment, is to provide the
          matching funds; and

     (3)  Reducing the amount of the appropriation to $1 for the
          purpose of further discussion.

     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. 1744, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 1744, H.D. 1, and be referred to the Committee
on Consumer Protection and Commerce.

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



                                   ______________________________
                                   ROBERT N. HERKES, Chair