STAND. COM. REP. NO. 2159

Honolulu, Hawaii

RE:    S.B. No. 2197

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Economic Development and Taxation, to which was referred S.B. No. 2197 entitled:

"A BILL FOR AN ACT RELATING TO COMMUNITY-BASED ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

     The purpose of this measure is to appropriate $500,000 to be paid into the Hawaii community-based economic development revolving fund for low interest loans and grants to qualifying community-based organizations involved in economic development activities under the Hawaii Community-Based Economic Development (CBED) technical and financial assistance program.

     Testimony in support of this measure was received from the Department of Business, Economic Development, and Tourism; Office of Hawaiian Affairs; Hawai‘i Alliance for Community-Based Economic Development; Empower Oahu; Hawaiian Homestead Technology Inc.; Kona Pacific Farmers Cooperative; Lana‘i Visitors Bureau; and one individual.

     Your Committee finds that since its inception in 1991, the CBED technical and financial assistance program has committed more than $4,000,000 to more than one hundred eighty community-based organizations statewide, with approximately sixty-seven per cent distributed to neighbor islands.  In fiscal year 2006, the CBED program awarded just over $260,000 in grant funds to fifteen community organizations and twelve of these completed their grants in FY 2007.  In technical assistance, CBED funds provided twelve organizations with one-on-one business planning or organizational capacity-building assistance.  In addition, more than two hundred eighty high school students were provided business training through workshops and more than two thousand six hundred individuals representing more than five hundred and fifty community organizations or agencies were provided community economic development training, information and assistance.

     Your Committee has amended this measure at the recommendation of the Attorney General to appropriate out of the Hawaii community-based economic development revolving fund the sum of $500,000, or so much thereof as may be necessary for fiscal year 2008-2009, for low-interest loans and grants, with the moneys to be expended by the Department of Business, Economic Development, and Tourism.

     As affirmed by the record of votes of the members of your Committee on Economic Development and Taxation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2197, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2197, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Taxation,

____________________________

CAROL FUKUNAGA, Chair