STAND. COM. REP. NO. 122

Honolulu, Hawaii

, 2019

RE: H.B. No. 1402

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Water, Land, & Hawaiian Affairs, to which was referred H.B. No. 1402 entitled:

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

begs leave to report as follows:

The purpose of this measure is to establish the Micro Enterprise Assistance Program on Hawaiian Home Lands subaccount in the Hawaii Community-based Economic Development Revolving Fund for the purpose of providing grants and loans for qualified native Hawaiians, native Hawaiian-controlled homestead associations, and Hawaiian homestead associations' designated tax-exempt community development corporations.

Your Committee received testimony in support of this measure from the Sovereign Council of Hawaiian Homestead Associations, Kanehili Community Association, and an individual. Your Committee received testimony in opposition to this measure from two individuals. Your Committee received comments on this measure from the Department of Hawaiian Home Lands, Department of the Attorney General, Department of Business, Economic Development & Tourism, Department of Budget and Finance, and Council for Native Hawaiian Advancement.

Your Committee has amended this measure by:

(1) Clarifying that funds in the subaccount may be used exclusively for providing loans and grants to qualified native Hawaiians through implementation of the Micro Enterprise Assistance Program;

(2) Clarifying that entities eligible to receive funding are native Hawaiian-controlled homestead associations with members who are qualified native Hawaiians, Hawaiian Homestead associations' designated tax-exempt community development corporations, and native Hawaiian community organizations with the ability and history of making and administering loans and providing support to qualified native Hawaiians;

(3) Changing appropriations to unspecified amounts;

(4) Changing its effective date to July 1, 2050 to encourage further discussion; and

(5) Making nonsubstantive technical amendments for the purpose of clarity and consistency.

Should your Committee on Finance choose to hear this measure, your Committee respectfully requests that the Committee on Finance consider appropriating $4,000,000 for deposit into the Micro Enterprise Assistance Program on Hawaiian Home Lands subaccount and appropriating the same sum out of the subaccount to the Department of Business, Economic Development, and Tourism for expenditure on the Program.

As affirmed by the record of votes of the members of your Committee on Water, Land, & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1402, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1402, H.D. 1, and be referred to your Committee on Economic Development & Business.

Respectfully submitted on behalf of the members of the Committee on Water, Land, & Hawaiian Affairs,

____________________________

RYAN I. YAMANE, Chair