STAND. COM. REP. NO. 3310

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2501
                                        H.D. 2
                                        S.D. 1




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

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 2501, H.D. 2, S.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 give the Department of
Hawaiian Home Lands the authority to set interest rate for loans
by rule, with a baseline rate of 2 1/2 per cent.

     Current law provides for an interest rate of 2 1/2 per cent
for loans from the Hawaiian home loan fund, and 2 1/2 per cent or
higher for other loans, as established by law.  This change would
establish a baseline rate of 2 1/2 per cent for all types of
loans, and allow the department by rule to establish higher
rates.  Your Committee finds that this is a more useful and
expeditious process as compared to establishing interest rates by
statute.

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


 
a                                                     HB2501 SD1
 
 
 
                                   STAND. COM. REP. NO. 3310
                                   Page 2


                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     HB2501 SD1