STAND. COM. REP. NO. 943

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 978
                                        




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

Sir:

     Your Committee on Economic Development, 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 measure is to encourage private lenders
to provide financing for diversified agriculture by reducing
private lenders' risks through the Department of Agriculture's
loan guarantee.

     Your Committee received testimony in support of this measure
from the Department of Agriculture.

     Your Committee finds that financing is one of the critical
elements required to foster diversified agriculture's growth, and
further contribute to Hawaii's economy.  Agricultural lending
poses higher risks in comparison to conventional commercial
lending, and the program in this measure will further encourage
private lenders to provide financing by virtue of streamlined
procedures.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 978 and recommends that it pass Second Reading and be
referred to the Committee on Ways and Means.


 
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                                   STAND. COM. REP. NO. 943
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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