STAND. COM. REP. NO. 2370

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2783
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Education and Technology, Commerce and
Consumer Protection, and Economic Development, to which was
referred S.B. No. 2783 entitled: 

     "A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT
     FINANCING,"

beg leave to report as follows:

     The purpose of this measure is to promote venture capital in
Hawaii by establishing a revolving fund program for venture
capital assistance.

     In addition, this measure permits participation from major
funds like the Employees' Retirement System.

     Testimony in support of the measure was received from the
Governor's Special Advisor on Technology Development, Department
of Business, Economic Development, and Tourism, High Technology
Development Corporation, ProBio, Inc., and Integrated Coffee
Technologies, Inc., and oral testimony from Hawaii Technology
Trade Association.  Comments were received from the Employees'
Retirement System.

     Your Committees find that insufficient venture capital in
Hawaii is a major obstacle in developing a high technology
industry in the State.  For example, the Employees' Retirement
System has an allocation of approximately $150 million dedicated
to venture capital, but none of it is invested in Hawaii.


 
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     Your Committees agree that establishing a revolving fund
program for venture capital assistance is necessary to support
the growth of a high technology industry in Hawaii.  Allowing a
large fund like the Employees' Retirement System to participate
in the fund will supply a larger pool of venture capital funds
that can be invested here to stimulate the growth of this
industry.

     As affirmed by the records of votes of the members of your
Committees on Education and Technology, Commerce and Consumer
Protection, and Economic Development that are attached to this
report, your Committees are in accord with the intent and purpose
of S.B. No. 2783 and recommend that it pass Second Reading and be
referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Education and
                                   Technology, Commerce and
                                   Consumer Protection, and
                                   Economic Development,



____________________________       ______________________________
BRIAN KANNO, Co-Chair              DAVID Y. IGE, Chair



____________________________
BRIAN T. TANIGUCHI, Co-Chair



____________________________
LORRAINE R. INOUYE, Chair

 
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