STAND. COM. REP. NO. 2977

Honolulu, Hawaii

RE: H.B. No. 2333

H.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Economic Development, Tourism, and Technology, to which was referred H.B. No. 2333, H.D. 1, 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 and intent of this measure is to authorize the Department of Business, Economic Development, and Tourism to deposit monies it receives from the repayments of outstanding loans and payments of certain loan programs into the Hawaii community-based economic development revolving fund.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawai‘i Alliance for Community-Based Economic Development; O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i; Waianae Economic Development Council; Hawai‘i Farm Bureau; and one individual.

Your Committee finds that the Hawaii capital loan program, Hawaii large fishing vessel purchase, construction, renovation, maintenance, and repair loan program, and Hawaii small fishing vessel loan program have been inactive since the repeal of the three programs' revolving funds. Your Committee further finds that the recoveries from outstanding loans from these programs would be better utilized in the Hawaii community-based economic development revolving fund, which supports the community-based economic development (CBED) program. The three loan programs share similar missions with the CBED program in that all of the programs were designed to assist small businesses and positively impact their communities, thereby validating the deposit of monies into the Hawaii community-based economic development revolving fund.

Your Committee believes that reallocating funds to the CBED program will support Hawaii's most socially and economically challenged regions and demographic groups through community-supported economic development projects. The CBED program improves the living standards of Hawaii's residents in the most vulnerable communities and provides an opportunity to not only stimulate business activity, but also create jobs for socially and economically challenged communities.

As affirmed by the record of votes of the members of your Committee on Economic Development, Tourism, and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2333, H.D. 1, and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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GLENN WAKAI, Chair