STAND. COM. REP. NO. 2009

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2003
                                        




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 S.B. No. 2003 entitled: 

     "A BILL FOR AN ACT MAKING AN APPROPRIATION TO MATCH FEDERAL
     FUNDS FOR THE ESTABLISHMENT OF MANUFACTURING EXTENSION
     PROGRAMS,"

begs leave to report as follows:
     
     The purpose of this measure is to appropriate $200,000 for
fiscal year 2000-2001, to establish manufacturing extension
programs in Hawaii; provided that no funds shall be made
available unless the Department of Business, Economic
Development, and Tourism provides a dollar-for dollar match of
federal funds.

     Testimony in favor of this measure was submitted by the
Department of Business, Economic Development, and Tourism, the
Oahu Economic Development Board, the West Kaua`i Community
Development Board, Industry Network Corporation (INC Hawaii), the
Maui Economic Development Board, Inc., Arturo's of Hawaii, the
Hawai`i Fashion Industry Association, the Hawai`i Forest Industry
Association, Martin & MacArthur, Oils of Aloha, and one
individual.

     Your Committee finds that manufacturing extension programs
have made a significant impact on Hawaii's economy.  Over the
past three years, they have created nearly 400 jobs and have
provided much needed assistance to the manufacturing businesses
in Hawaii, including the initiation of new distribution channels

 
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                                   STAND. COM. REP. NO. 2009
                                   Page 2


and support for a number of activities and organizations that
assist manufacturers.  Your Committee further finds that this
proactive program will greatly help in broadening the State's
economic base through direct technical, business, and workforce
development assistance for new and existing businesses.

     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 S.B. No. 2003 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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