Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred S.B. No. 560 entitled:

begs leave to report as follows:

The purpose of this measure is to appropriate funds to the University of Hawaii to support the current services and expand the programs of the Hawaii Small Business Development Center Network (SBDC).

Testimony supporting this measure was received from the Department of Business, Economic Development, and Tourism, SBDC, Maui Economic Development Board, Inc., Kona-Kohala Chamber of Commerce, Strategic Visions International, Hawaii Venture Capital Association, Maui High Performance Computing Center, Inaba Architecture, Precision Payroll & Bookkeeping Service, CJ Creations Optique, Hawaii Taro Company, Inc., Ohana Orchids, Inc., Kapala'Ahu, Origin – The Language Agency, Volcano Orchid Farms, Business Plans Hawaii, and four individuals.

Your Committee finds that small businesses in Hawaii comprise ninety-seven per cent of businesses in the State and are the primary contributors to the economy, generators of new jobs, and innovators in industry. The SBDC is a partnership program between the University of Hawaii at Hilo and the U.S. Small Business Administration. Through its programs, SBDC has assisted numerous individuals in starting, sustaining, and growing their small businesses. Your Committee believes that SBDC's efforts have fortified Hawaii's economic foundation and finds that the appropriation made by this measure is necessary for SBDC to continue and expand its programs.

Your Committee notes that SBDC has experienced substantial reductions of $475,000 in operating revenue during the past biennium. The appropriation is intended to offset these reductions, and to expand the number of small businesses served from 1,000 to 2,000 throughout Hawaii.

Your Committee has amended this measure by requiring SBDC to report to the 2004 Legislature on the services it provides, volume and categories of businesses served, and any other information relevant to assessing the performance of SBDC.

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. 560, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 560, S.D. 1, and be referred to the Committee on Ways and Means.