STAND. COM. REP. NO. 2842

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 1969
                                        H.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred H.B. No. 1969, H.D. 2, entitled: 

     "A BILL FOR AN ACT MAKING AN APPROPRIATION TO MATCH FEDERAL
     FUNDS FOR THE ESTABLISHMENT OF MANUFACTURING EXTENSION
     PROGRAMS,"

begs leave to report as follows:

     The purpose of this measure is to appropriate funds to match
federal funds for the establishment of manufacturing extension
programs (MEP) in Hawaii.

     Testimony in favor of this measure was submitted by the
Department of Business, Economic Development, and Tourism, Maui
Economic Development Board, Inc., Hawaii Manufacturing Extension
Partnership, Hawai`i Fashion Industry Association, Hawai`i Forest
Industry Association, A.I.R. Inc., Arturo's, CRT Consulting,
Carolynn K's Toffee, Honolulu Sauce Company, Jungle Jerky, Maui
Net, Oils of Aloha, and Tahitian Goddess.  One individual gave
oral testimony in support.

     Your Committee has heard that the Hawaii MEP recently became
a stand-alone program, locally administered, and is no longer
part of a regional program.  As such, the appropriation to match
federal dollars is particularly important to ensure that the
federal funds in this highly competitive program do not go to
other states.


 
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     Your Committee finds that the Hawaii MEP has contributed
significantly to the local economy through its support of local
manufacturers, and that the federal matching funds are important
to continued growth in a wide range of manufacturing enterprises.

     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. 1969, H.D. 2, 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

 
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