STAND. COM. REP. NO. 34-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1969
                                     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. 1969 entitled: 

     "A BILL FOR AN ACT MAKING AN APPROPRIATION TO MATCH FEDERAL
     FUNDS FOR THE ESTABLISHMENT OF MANUFACTURING EXTENSION
     PROGRAMS,"

begs leave to report as follows:

     The purpose of this bill is to appropriate funds to match
federal funds for the establishment of manufacturing extension
programs.

     Testimony in support of this measure was submitted by the
Oahu Economic Development Board, the Hawai'i Forest Industry
Association, Industry Network Corporation, the Hawaii Fashion
Industry Association, Martin & MacArthur, Arturo's, Marsh USA
Inc., Hawai'i Gourmet Cookies, Inc., and an individual.  The
Department of Business, Economic Development, and Tourism (DBEDT)
submitted testimony in support of this measure, provided the
appropriation does not replace the current priorities in DBEDT's
Supplemental Budget.

     Your Committee finds that the Manufacturing Extension
Program (Program) has made a significant impact on Hawaii's
economy by creating nearly 400 jobs and producing much-needed
assistance to manufacturing businesses in Hawaii over the last
three years.  Among other things, the Program has initiated new
distribution channels, and supported small businesses in the Made
in Hawaii Festival, the Hawaii Fashion Technology Training

 
 
                                 STAND. COM. REP. NO. 34-00
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Center, the branding of the Hawaii Forest Products, the launching
of the Hawaii Technology Trade Association, and the creation of
e-commerce sites for manufacturers.

     Your Committee has amended this measure by making technical
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. 1969, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 1969, 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