STAND. COM. REP. NO. 163-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2964
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 2964 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to appropriate funds to
encourage and support community-based physical improvements that
are the result of comprehensive regional community-based economic
development planning initiatives.

     The Hawaii Alliance for Community-Based Economic Development
(HACBED), the Big Island Sustainable Communities Association, the
Hamakua District Development Council, the Hilo-Hamakua Community
Development Corporation, Honomu Computer Resource Center, the
Pacific Gateway Center, and several individuals testified in
support of the measure.  The Department of Business, Economic
Development, and Tourism (DBEDT) testified in support of the
intent of the measure but indicated that it is unable to support
new proposals for budget items that are not already in its
Supplemental Budget.

     Your Committee notes that the Community-Based Economic
Development Program (Program) has been successful in helping
communities to become more economically self-sufficient through
the creation of economic development ventures and jobs.  This
Program has provided technical and financial assistance to

 
 
 
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nonprofit community-based organizations statewide that are
involved in economic development efforts.

     Your Committee has amended this bill by:

     (1)  Specifying that the physical improvements are part of
          an existing or emerging comprehensive, regional, multi-
          sector community-based strategic action planning
          process coordinated by HACBED;

     (2)  Stipulating that the appropriation is to be expended by
          DBEDT's Program; and

     (3)  Making technical, nonsubstantive amendments for clarity
          and style.

     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 H.B. No. 2964, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 2964, 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