STAND. COM. REP. NO. 2949

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2964
                                        H.D. 1




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. 2964, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO COMMUNITY-BASED ECONOMIC
     DEVELOPMENT,"

begs leave to report as follows:

     The purpose of this measure is to appropriate funds to
encourage and support community-based physical improvements that
are the result of comprehensive regional community-based economic
development planning initiatives.

     Testimony in favor of this measure was submitted by the
Department of Business, Economic Development, and Tourism,
Community-Based Economic Development Program, Hawaii Alliance for
Community-Based Economic Development, Empower O`ahu, Nanakuli
Neighborhood Housing Services, Inc., Hale Ku`ai Cooperative,
Pacific Gateway Center, Hamakua District Development Council, and
Rural South Hilo Community Association.

     Your Committee finds that this program builds on the value
of grassroots planning to bring improvements to economically
distressed communities.  Your Committee has heard that through a
$20,000 planning grant from this program, the island of Molokai
leveraged these funds to obtain $2,900,000 in additional funding
to develop a community and retail center, as well as bringing
$250,000 a year for the past ten years to Molokai through its
status as a Federal Empowerment Zone.


 
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                                   STAND. COM. REP. NO. 2949
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     Your Committee is strongly supportive of these community
directed efforts.

     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. 2964, H.D. 1, 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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