STAND. COM. REP. NO. 1248
RE: H.B. No. 1402
Honorable Ronald D. Kouchi
President of the Senate
Thirtieth State Legislature
Regular Session of 2019
State of Hawaii
Your Committee on Hawaiian Affairs, to which was referred H.B. No. 1402, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE COMMUNITY-BASED ECONOMIC DEVELOPMENT PROGRAM,"
begs leave to report as follows:
The purpose and intent of this measure is to establish the micro enterprise assistance program on Hawaiian home lands subaccount within the Hawaii community-based economic development revolving fund to provide grants and loans through the micro enterprise assistance program to qualified native Hawaiian entities.
Your Committee received testimony in support of this measure from the Council for Native Hawaiian Advancement, Sovereign Council of Hawaiian Homestead Associations, and one individual. Your Committee received comments on this measure from the Department of Budget and Finance; Department of the Attorney General; Department of Business, Economic Development, and Tourism; and Department of Hawaiian Home Lands.
Your Committee finds that when Hawaii was admitted to the Union, the Hawaii Admission Act of 1959 transferred complete responsibility of the Hawaiian Homes Commission Act and Hawaiian home lands from the federal government to the State. One of the goals of the Hawaiian Homes Commission Act that the State agreed to undertake is to enable native Hawaiians to live self-sufficient lives on the Hawaiian home lands. This measure is intended to help achieve that goal by providing grants and loans to support commercial and community projects being initiated on Hawaiian homelands.
Your Committee understands the constitutional concerns raised by the Attorney General, however your Committee also notes the position of proponents of this measure that the State's obligation under the Hawaiian Homes Commission Act remains in effect today and, while the State has traditionally used the Department of Hawaiian Home Lands to fulfill this obligation, it is not the only agency at the State's disposal to meet its responsibilities. Your Committee further notes that the Department of Business, Economic Development, and Tourism has experience administering programs similar to the one contemplated in this measure and has authority to contract with outside sources for program administration as it deems necessary.
Your Committee has amended this measure by:
(1) Establishing the micro enterprise assistance program on Hawaiian home lands revolving fund in lieu of creating a subaccount within the Hawaii community-based economic development revolving fund;
(2) Clarifying that loans and grants under this measure may be provided to qualified native Hawaiians, native Hawaiian-controlled homestead associations, and Hawaiian homestead associations' designated community development corporations;
(3) Removing references to the Hawaiian home lands development program as a source of monies for the micro enterprise assistance program on Hawaiian home lands revolving fund; and
(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1402, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1402, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Hawaiian Affairs,
MAILE S.L. SHIMABUKURO, Chair