STAND. COM. REP. NO. 3077

Honolulu, Hawaii

RE: S.B. No. 2805

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2805, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SMALL BUSINESS LOANS,"

begs leave to report as follows:

The purpose and intent of this measure is to establish and provide moneys for the Hawaii start-up business loan program.

More specifically, the measure:

(1) Establishes the Hawaii start-up business loan program;

(2) Establishes the Hawaii start-up business loan program revolving fund to provide moneys for the loan program; and

(3) Appropriates moneys into and out of the Hawaii start-up business loan program revolving fund.

Your Committee received written comments in support of this measure from the Hawaii Technology Development Corporation; Department of Business, Economic Development, and Tourism; Hawaii Food Industry Association; Chamber of Commerce Hawaii; and Right to Start.

Your Committee received written comments on this measure from the Department of Budget and Finance.

Your Committee finds that the start-up loan program established by this measure will help create jobs, grow the State's economy, increase incomes and community wealth, and fight inequality and poverty by supporting entrepreneurs and new businesses.

Your Committee has amended this measure by:

(1) Clarifying that the Business Development and Support Division of the Department of Business, Economic Development, and Tourism shall adopt administrative rules necessary for administering the Hawaii start-up business loan program;

(2) Amending the definition of "financial institution" to include nonprofit loan funds, as recommended in written comments from the Department of Business, Economic Development, and Tourism;

(3) Changing the source of moneys appropriated into the Hawaii start-up business loan program revolving fund from federal funds to the State's general fund;

(4) Changing the amounts appropriated into and out of the Hawaii start-up business loan program revolving fund to unspecified sums;

(5) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(6) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2805, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2805, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair