Appropriates $6 million in GO bond funds to extend the community-based economic development loan and grant program to information technology for distressed rural areas. Appropriates $200,000 to increase the program's funding.

A BILL FOR AN ACT

SECTION 1. The legislature finds that the Hawaii community-based economic development loan and grant program has a proven track record in assisting distressed rural areas. The legislature further finds that the expansion of the Internet has fundamentally transformed business, and government must turn its attention to providing literacy information and services over the Internet free of cost in order to reduce the "digital divide".

The purpose of this Act is to expand the Hawaii community-based economic development loan and grant program to include information technology in distressed rural areas.

SECTION 2. The director of finance is authorized to issue general obligation bonds in the sum of $6,000,000, or so much thereof as may be necessary, and the same sum, or so much thereof as may be necessary, is appropriated for fiscal year 2001-2002, to be paid into the Hawaii community-based economic development revolving fund created in section 210D-4, Hawaii Revised Statutes, for the purpose of supporting information technology businesses in distressed rural areas, including a maximum grant of $100,000 by the Hawaii community-based economic development loan and grant program towards provision of literacy training services, with audio and visual enhancing components, on the Internet.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $200,000, or so much thereof as may be necessary for fiscal year 2001-2002, to be paid into the Hawaii community-based economic development revolving fund created in section 210D-4, Hawaii Revised Statutes, for the purpose of increasing funding for the Hawaii community-based economic development loan and grant program.

SECTION 4. The sums appropriated shall be expended by the department of business, economic development, and tourism through the Hawaii community-based economic development loan and grant program for the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2001.