Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2748 entitled:

begs leave to report as follows:

The purpose of this measure is to make technical amendments for clarity and style to section 39-17, Hawaii Revised Statutes, pertaining to general obligation bonds.

Prior to the hearing on this measure, your Committee created and circulated a proposed Senate Draft 1 that deleted the substantive provisions of the measure and inserted therefor, provisions that grant civil service status to the employees of the Department of Business, Economic Development, and Tourism's Business Action Center.

Your Committee received testimony in support of the measure from the Department of Business, Economic Development, and Tourism, the County of Maui's Office of Economic Development, the Hawaii Small Business Development Center Network, the National Federation of Independent Business, TeraBiz, and Jean Williams, Inc. The Department of Budget and Finance testified in opposition to the measure.

Your Committee believes that the existence of the Business Action Center fosters the growth of the State's small business community. Your Committee also recognizes the profound impact small businesses have on the State's revenues through their contributions to job creation, attraction of revenues from outside the State, and income and general excise tax revenues. Without a vital and expanding small business community and the revenues they generate, the State's finances would suffer immeasurably.

Your Committee also finds that the employees of the Business Action Center possess a total of over forty years of experience in servicing the needs of Hawaii's small businesses. This combined experience is invaluable in assuring continuity in the high quality and level of service already provided by the Business Action Center. Granting civil service status to these employees not only ensures that the level and quality of service will continue for Hawaii's small business community and aspiring entrepreneurs, but also demonstrates the State's understanding of the importance of small business to the State's financial well being.

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 H.B. No. 2748, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2748, S.D. 1, and be placed on the calendar for Third Reading.