STAND. COM. REP. NO. 2163

Honolulu, Hawaii

RE:    S.B. No. 2983

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Economic Development and Taxation, to which was referred S.B. No. 2983 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to facilitate the Community-Based Economic Development Program (CBED) in providing financial assistance to community-based businesses and enterprises by:

     (1)  Amending the definition of "community of interest" to conform to the definition of "community of identity";

     (2)  Authorizing the CBED revolving fund to receive funding from other sources; and

     (3)  Adjusting the terms of loans to decrease the outstanding balance allowed to any one applicant from $500,000 to $250,000, and the maximum interest rate from ten per cent to six per cent.

     Testimony in support of this measure was received from the Department of Business, Economic Development, and Tourism.

     Your Committee finds that this measure will provide the CBED program with greater flexibility, with the intent of improving the delivery of services, particularly loans.

     Your Committee has amended this measure by:

     (1)  Deleting section 7, as there were no amendments made to section 210D-11, Hawaii Revised Statutes, and the related reference in the purpose section; and

     (2)  Making technical amendments to correct errors and to conform to the preferred drafting style.

     As affirmed by the record of votes of the members of your Committee on Economic Development and Taxation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2983, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2983, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

CAROL FUKUNAGA, Chair