STAND

STAND. COM. REP. NO. 1038

Honolulu, Hawaii

, 2005

RE: S.B. No. 719

S.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Economic Development & Business Concerns, to which was referred S.B. No. 719, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE CAPITAL LOAN PROGRAM,"

begs leave to report as follows:

The purpose of this bill is to improve government efficiency, coordination, and centralization by merging the Hawaii Capital Loan Program (Program) and the Hawaii Strategic Development Corporation (HSDC) into a single entity to be administered by HSDC. Specifically, this bill, among other things:

(1) Statutorily establishes the Program within Chapter 211F, Hawaii Revised Statutes (HRS), relating to HSDC;

(2) Establishes a Capital Loan Special Fund to receive repayment of loans and interest payments;

(3) Ensures that loans are limited to small businesses;

(4) Requires an annual report to the Legislature and the Governor on the progress of the Program; and

(5) Repeals the Capital Loan Program established under Chapter 210, HRS, relating to the Capital Loan Program.

The Department of Business, Economic Development, & Tourism testified in support of this bill.

Your Committee finds that consolidating existing programs into a single financing program will facilitate the issuance and administration of loans to businesses that do not meet conventional lending criteria. The consolidation of existing programs will create a continuum of services and resources.

As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 719, S.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

		____________________________ ROBERT N. HERKES, Chair