Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Economic Development and Technology, to which was referred S.B. No. 2540 entitled:

begs leave to report as follows:

The purpose of this measure is to appropriate funds for the Community-Based Economic Development Program of the Department of Business, Economic Development, and Tourism.

Your Committee received testimony in favor of this measure from the Department of Business, Economic Development, and Tourism, Hawaii County Department of Research and Development, Kauai County Office of Economic Development, Kauai Food Bank, Hawaii County Economic Opportunity Council, Hilo-Hamakua Community Development Corporation, Hawaii Alliance for Community-Based Economic Development, Hawaii Alliance for Community-Based Economic Development, Louis Pohl Gallery, Na Po'e Hoa'Aina, MEO Business Development Corporation, Nanakuli Neighborhood Housing Services, Inc., Community Works, Garden Island Resource Conservation & Development, Inc., Maunalaha Valley Community Association, Papakolea Community Development Corporation, Ko'olauloa Educational Alliance Corporation, Hamakua Diversified Agricultural Association, Waimanalo Community Development Corporation, and three individuals.

Your Committee finds that the Community-Based Economic Development Program has helped communities become economically self-sufficient by funding community-based economic development ventures and assisting in the building of business and organizational skill levels.

Your Committee has amended this measure by inserting $150,000 as the appropriation amount.

The $150,000 appropriation is to permit the enhancement and continuation of financial and technical assistance to eligible community organizations that enables them to plan and implement economic development projects and ventures that provide employment opportunities, builds economic capacity, strengthens identity, and helps to retain and create cultural anchors. Funding will increase the number of jobs, create additional new businesses and assist in expanding established businesses in Hawaii's communities. The program also anticipates a significant increase in the number of community organizations seeking technical and financial assistance. Funding will assure the Program is able to provide training and capacity building opportunities to promote, support, and invest in community-based development projects that result in measurable economic impact.

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. 2540, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2540, S.D. 1, and be referred to the Committee on Ways and Means.