Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 549, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to provide matching funds for the establishment of extension services to assist manufacturers in Hawaii.

This is intended to improve the performance of business enterprises in Hawaii and thereby strengthen Hawaii's competitiveness both locally and globally.

Your Committee finds that the three-and-a-half year-old Hawaii Manufacturing Extension Partnership 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 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.

Upon further consideration, your Committee has amended this bill to change the appropriated amounts for fiscal year 2001-2002 and 2002-2003 to $1 for the purpose of promoting further discussion.

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. 549, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 549, S.D. 2.