STAND. COM. REP. NO. 780-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2501
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2501, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE HAWAIIAN HOMES COMMISSION
     ACT, 1920, AS AMENDED,"

begs leave to report as follows:

     The purpose of this bill is to allow the Department of
Hawaiian Home Lands (DHHL) the flexibility to set the interest
rate on loans from the Hawaiian Home Loan Fund and other loan
sources by:

     (1)  Authorizing DHHL to adjust interest rates by
          administrative rule; and

     (2)  Lowering the minimum interest rate on such loans from
          two and one-half percent to zero percent.

     DHHL testified in support of this measure.

     Your Committee has amended this bill by adding a
severability clause provision.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2501, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 2501, H.D.
2.

 
 
                                 STAND. COM. REP. NO. 780-00
                                 Page 2

 
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair