STAND. COM. REP. NO. 315-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2501
                                     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 Judiciary and Hawaiian Affairs, to which
was referred H.B. No. 2501 entitled: 

     "A BILL FOR AN ACT RELATING TO THE HAWAIIAN HOMES COMMISSION
     ACT, 1920, AS AMENDED,"

begs leave to report as follows:

     The purpose of this bill is to allow the Department of
Hawaiian Home Lands to establish interest rates by administrative
rule, rather than by following a statutory interest rate
schedule.

     Testimony in support of this bill was provided by the State
of Hawaii Department of Hawaiian Home Lands and the State Council
of Hawaiian Homestead Associations.

     Your Committee finds that authorizing the Department of
Hawaiian Home Lands to adjust interest rates based on the
marketplace and on lessees' needs will generate additional income
for the Hawaiian Home Loan Fund, and will allow those who can
afford to pay to be charged market rates, leaving more funds
available for loan to lessees of more limited means.

     Your Committee amended this bill by lowering the annual
minimum interest rate from "two and one-half per cent" to "zero
per cent" to allow the Department of Hawaiian Home Lands
discretion to offer no-interest loans.    
      

 
 
 
                                 STAND. COM. REP. NO. 315-00
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Judiciary and Hawaiian Affairs that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2501, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2501, H.D. 1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary &
                                   Hawaiian Affairs,



                                   ______________________________
                                   ERIC G. HAMAKAWA, Chair