Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Economic Development and Technology, to which was referred S.B. No. 549 entitled:

begs leave to report as follows:

The purpose of this measure is to provide matching funds for the establishment of extension services to improve performance of business enterprises in Hawaii and thereby strengthen global and local competitiveness.

Your Committee received testimony in favor of this measure from the Department of Business, Economic Development, and Tourism, Hawaii Manufacturing Extension Partnership, Jane Yamashiro and Associates, Oahu Economic Development Board, Hawai'i Technology Trade Association, and Oils of Aloha.

The three and one half year old Hawaii Manufacturing Extension Partnership (HMEP) program has proven to be a powerful support for small and medium-sized businesses in improving their capacity and efficiency, and has assisted with the diversification of Hawaii's economy. There is no other program that is directed at the manufacturing sector, which by Federal definition includes technology and high technology products and services. The Federal government has indicated that this is one of the most effective programs they have created and has allocated matching funds available to Hawaii.

Your Committee has adopted the recommendation of the Department of Business, Economic Development, and Tourism by amending the measure to add a preamble that explains the purpose of the appropriation and the activities and impacts of the Hawaii Manufacturing Extension Partnership.

For the purposes of consistency your Committee has also renumbered sections 1, 2, and 3 as section 2, 3, and 4 respectively.

As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 549, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 549, S.D. 1, and be referred to the Committee on Ways and Means.