STAND. COM. REP. NO. 157-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1989
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Higher Education, to which was referred
H.B. No. 1989 entitled: 

     "A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII AT
     HILO,"

begs leave to report as follows:

     The purpose of this bill is to appropriate funds for the
Small Business Development Center (Center) at the University of
Hawaii at Hilo.  

     The funds are necessary to keep the Center operational as
its closure could result in a loss of federal funds.  Federal
requirements for funds for the Center's program dictate that the
programs be statewide and closure of the Center could be
considered as a lack of statewide participation.  Since 1994, the
State has received $15 in federal funds for every $1 the State
has invested in this program for a total of $26,000,000. 

     The County of Hawaii, Hawaii Small Business Development
Center Network, County of Kauai's Office of Economic Development,
University of Hawaii's Office of Technology Transfer and Economic
Development, Central Pacific Bank, Torkildson, Katz, Fonseca,
Jaffe, Moore & Hetherington Attorneys at Law, A Law Corporation,
The Chamber of Commerce of Hawaii, Hawaii Community Loan Fund,
Maui Economic Opportunity, Hawaii Association of Realtors, H & S
Publishing, Lynn C. Fox & Associates, Inc., Kauai Business
Assistance Corporation, Kauai Chamber of Commerce, Visitor
Industry Training and Education Center, Kauai Micro, Maui

 
 
                                 STAND. COM. REP. NO. 157-00
                                 Page 2

 
Community College, and concerned citizens testified in support of
this bill.

     Your Committee has amended this bill by increasing the
amount of the appropriation from $345,000 to $735,000.
Technical, nonsubstantive amendments have also been made for the
purpose of clarity.

     As affirmed by the record of votes of the members of your
Committee on Higher Education that is attached to this report,
your Committee is in accord with the intent and purpose of H.B.
No. 1989, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 1989, H.D. 1, and
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Higher Education,



                                   ______________________________
                                   DAVID MORIHARA, Chair