STAND. COM. REP. NO. 260

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 945
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Education and Technology, to which was
referred S.B. No. 945 entitled: 

     "A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII,"

begs leave to report as follows:

     The purpose of this measure is to create a separate line
item in the budget for the Small Business Development Center at
the University of Hawaii at Hilo.  This measure also appropriates
funds to the Center.

     Testimony in support of this measure was submitted by the
Hawaii Small Business Development Center Network, the Business
Research Library of the Hawaii Small Business Development Center
Network, and the Rural Economic Transition Assistance-Hawaii
Program.  The Department of Budget and Finance submitted
testimony in opposition of this measure.

     Your Committee finds that the Hawaii Small Business
Development Center assists small businesses and potential small
businesses throughout the State.  The Center promotes economic
development through each of its four centers on Hawaii, Kauai,
Maui, and Oahu.  This Center is a partnership program between the
University of Hawaii at Hilo and the U.S. Small Business
Administration in which both federal and state dollars are
appropriated.  

     Your Committee further finds that the Business Research
Library of the Center is critical to Hawaii's economic

 
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development.  The resources the library provides fulfill the
needs of small business owners and those who are interested in
starting new ventures.

     While your Committee commends the Hawaii Small Business
Development Center for all it has done, and continues to do, to
improve the economic development of this State, your Committee
finds that it is not necessary to designate a separate line item
in the budget for its funding.  Accordingly, your Committee has
amended this measure to delete this provision.

     Your Committee has also deleted the specified dollar amounts
to be appropriated.  Because of the State's weak economic
condition, your Committee believes that there must be further
discussion on the amount to be funded.  The Committee on Ways and
Means, with its knowledge of available funds, is best able to
determine the specific appropriation.

     Technical, nonsubstantive amendments were also made to
reflect the preferred drafting style.

     As affirmed by the record of votes of the members of your
Committee on Education and Technology that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 945, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 945,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Education and
                                   Technology,



                                   ______________________________
                                   DAVID Y. IGE, Chair

 
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