STAND. COM. REP. NO. 1431

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 978
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 978 entitled: 

     "A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose of this bill is to support the growth of
diversified agriculture by encouraging private lenders to provide
agricultural loans to farmers through Department of Agriculture
guaranteed loans.

     The bill authorizes the Department of Agriculture to
guarantee loans of up to ninety per cent of the principal amount.
Some restrictions apply with interest set at two per cent above
the prime rate charged by the lender.  The bill also provides a
one-time insurance fee of two per cent of the principal amount
payable by the lender to the department.

     Your Committee has amended the bill by making a technical
change that has no substantive effect.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
978, as amended herein, and recommends that it pass Third Reading
in the form attached hereto as H.B. No. 978, S.D. 1.


 
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                                   STAND. COM. REP. NO. 1431
                                   Page 2


                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                       HB978 SD1