STAND. COM. REP. NO. 605

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1072
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 1072 entitled:

     "A BILL FOR AN ACT RELATING TO THE HAWAII CAPITAL LOAN
     PROGRAM,"

begs leave to report as follows:

     The purpose of this bill is to repeal the "drop-dead"
provisions for the Department of Business, Economic Development
and Tourism's business loan guarantee program and neighbor island
preferential business loan interest rate, thereby making both
permanent.

     This measure allows the Department to continue to offer the
business guarantee loan program and preferential business loan
interest rate to counties with populations of less than one
hundred fifty thousand.

     Economic conditions on the neighbor islands continue to be
strained.  Your Committee finds that allowing the Department of
Business, Economic Development, and Tourism to continue these
programs increases the likelihood that business on the neighbor
island will return and prosper sooner.

     Your Committee has amended this bill by clarifying that only
the Section 4 of Act 311, Session Laws 1996, and Section 6, Act

 
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                                   STAND. COM. REP. NO. 605
                                   Page 2


104, Session Laws of 1998 are being amended, and that the
remaining provisions of those acts are not being repealed.

     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 S.B. No.
1072, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 1072, S.D. 1.

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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair



 
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