CONFERENCE COMMITTEE REP. NO. 83

Honolulu, Hawaii

                 , 2009

RE:    S.B. No. 91

       S.D. 2

       H.D. 2

       C.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 91, S.D. 2, H.D. 2, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to update and improve services provided by the Community-based Economic Development Technical and Financial Assistance Program by, among other things:

     (1)  Allowing the Hawaii Community-based Economic Development Revolving Fund to receive funding from any source;

     (2)  Deleting the prohibition against reallocating loan funds to the grant program that could cause an insufficient availability of funds to make loans;

     (3)  Reducing the cap on the outstanding balance of loans issued to any one applicant under Community-based Economic Development from $500,000 to $250,000; and

     (4)  Reducing the maximum interest rate for loans from ten to six percent.

     Your Committee on Conference finds that it is fiscally responsible to authorize the Hawaii community-based economic development revolving fund to receive monies from sources other than the general fund.  Your Committee also finds that this measure will allow community-based organizations in the State to keep pace with the changing economy.  Your Committee further finds that it is the right time to revise chapter 210D, Hawaii Revised Statutes, in order to help community‑based organizations meet the challenges of the most distressed communities in this State.

     Your Committee on Conference has amended this measure by:

     (1)  Clarifying its purposes;

     (2)  Changing the effective date to July 1, 2009; and

     (3)  Making a technical, nonsubstantive amendment for the purpose of clarity.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 91, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 91, S.D. 2, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ ANGUS L.K. MCKELVEY, Co-Chair	____________________________ CAROL FUKUNAGA, Chair
____________________________ ISAAC W. CHOY, Co-Chair	____________________________ SHAN S. TSUTSUI, Co-Chair