STAND. COM. REP. NO. 270

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 34
                                        




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

Sir:

     Your Committee on Economic Development, to which was
referred S.B. No. 34 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 make an appropriation to
match federal funds for establishment of Manufacturing Extension
Programs (MEP) in Hawaii.

     Your Committee received testimony in support of this measure
from the Department of Business, Economic Development, and
Tourism, Maui Economic Development Board, Inc., the Hawai
Agriculture Research Center, the Hawaii Food Manufacturers
Association, Hawaii Candy Inc., Extraordinary Experiences,
Industry Network Corporation (INC), and two individuals.

     Your Committee finds that while many people think Hawaii has
little or no manufacturing, in fact there are many small and
medium size businesses that are eligible for MEP funds.

     Your Committee has been informed that the Maui Economic
Development Development Board, Inc., has been working with INC,
the federal designee for the Hawaii MEP since 1998.  In less than
a year, the Maui MEP has achieved significant results with direct
technical assistance to over ninety companies, management of four
projects for manufacturing customers, made numerous community

 
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                                   STAND. COM. REP. NO. 270
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presentations, participated in local events and trade shows, and
created a homepage for the Maui county MEP.

     Your Committee is supportive of these efforts and believes
manufacturing extension partnerships should be encouraged and
expanded.

     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. 34 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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