STAND. COM. REP. NO.  396-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2289

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Economic Development & Business, to which was referred H.B. No. 2289 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII COMMUNITY-BASED ECONOMIC DEVELOPMENT TECHNICAL AND FINANCIAL ASSISTANCE PROGRAM,"

begs leave to report as follows:

The purpose of this measure is to continue efforts to achieve the State's overall economic development strategy by assisting community-based economic development initiatives.  Specifically, this measure, among other things:

     (1)  Amends the definition of "community-based organization" to delete the requirement that the organization be membership based;

     (2)  Reduces the number of Community-based Economic Development Advisory Council members from twelve to nine;

     (3)  Amends the qualifications for community-based economic development grants to include technical assistance to community-based organizations;

     (4)  Updates non-discrimination language applicable to a grant applicant; and

     (5)  Appropriates funds to the Hawaii Community-based Economic Development Revolving Fund.

The Department of Business, Economic Development, and Tourism and Pacific Growth Associates testified in support of this measure.

     The Community-based Economic Development Technical and Financial Assistance program has been in existence for nearly twenty-five years and has assisted over a thousand organizations with grants, loans, and technical assistance, creating numerous jobs in the process.  Community-based organizations assisted by this program are normally in rural areas and serve to promote economic development activities in the most economically distressed areas of the State.  Your Committee finds that continuing to support the Community-based Economic Development Technical and Financial Assistance program will support Hawaii's vital community-based organizations and ultimately Hawaii's economic development initiatives.

     Your Committee has amended this measure by changing its effective date to February 19, 2022, to facilitate further discussion.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2289, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2289, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

DEREK S.K. KAWAKAMI, Chair