STAND. COM. REP. NO. 757
Honolulu, Hawaii
, 2005
RE: S.B. No. 719
S.D. 2
Honorable Robert Bunda
President of the Senate
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred S.B. No. 719, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE CAPITAL LOAN PROGRAM,"
begs leave to report as follows:
The purpose of this measure is to improve government efficiency by merging the State's business financing programs, the Hawaii Capital Loan Program, and the Hawaii Strategic Development Corporation, into a single financial assistance entity to be administered by the Hawaii Strategic Development Corporation.
Specifically, this bill repeals chapter 210, Hawaii Revised Statutes, relating to the Capital Loan Program under the Department of Business, Economic Development, and Tourism and creates a new part to chapter 211F relating to the same subject wherein financing programs are administered by the Hawaii Strategic Development Corporation.
Your Committee finds that creating a single financing program from existing programs will facilitate issuing and administering loans to businesses that do not meet the criteria for conventional lending services. Your Committee believes that this measure ensures that the State will continue to offer a range of financing options to new and developing businesses and that the program will be strengthened by coordinating the two entities' resources under a single program.
Upon further consideration, your Committee has amended this bill by:
(1) Clarifying that moneys in certain funds are disbursed by a board of directors and not by a departmental director on page 3, lines 14-15;
(2) Clarifying that moneys are transferred "between" rather than "to" the State Disaster Revolving Loan Fund "and" rather than "or" the Hawaii Capital Loan Special Fund on page 3, lines 20 and 21;
(3) Clarifying that loans are made to small business concerns by inserting the word "small" on page 6, line 8;
(4) Deleting the word "qualified" in front of the phrase "small business" for purposes of consistency on page 10, line 14;
(5) Clarifying that loan guarantees are to be limited to small business concerns by inserting the word "small" on page 11, line 7;
(6) Clarifying that a reduced fee of one per cent is paid on loans of $75,000 or less with a maturity exceeding twelve months and on loans with a maturity of twelve months or less by re-deleting the paragraph format and re-arranging text on page 12, lines 11-14; and
(7) Making various technical amendments for purposes of clarity and style.
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. 719, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 719, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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____________________________ BRIAN T. TANIGUCHI, Chair |
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