STAND. COM. REP. NO. 1423

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1607
                                     S.D. 2
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred S.B. No. 1607, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT AND
     PRIVATE INVESTMENT ATTRACTION,"

begs leave to report as follows:

     The purpose of this bill is to appropriate funds to be paid
into the Hawaii strategic development corporation (HSDC)
revolving fund for investment in primarily high technology
companies.

     Testimony in support of this bill was submitted by the
Honolulu Japanese Chamber of Commerce, Premier Capital Advisors,
the Hawaii Venture Capital Association, and one individual.
Testimony in support of the intent of this measure was submitted
by the department of Business, Economic Development, and Tourism,
and the High Technology Development Corporation.

     Your Committee has amended this measure by:

     (1)  Making technical and nonsubstantive changes for the
          purposes of clarity and style; and

     (2)  Adding Part II, requiring the board of trustees of the
          Employees' Retirement System to invest funds in
          qualified high technology businesses, subject to

 
 
 
                                 STAND. COM. REP. NO. 1423
                                 Page 2

 
          minimum and maximum limits as a means of providing
          venture capital for such businesses.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of S.B. No. 1607, S.D. 2, as amended herein,
and recommends that it pass Second Reading in the form attached
hereto as S.B. No. 1607, S.D. 2, H.D. 1, and be referred to the
Committee on Finance.

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



                                   ______________________________
                                   ROBERT N. HERKES, Chair