STAND. COM. REP. NO. 302

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 979
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred H.B.
No. 979 entitled: 

     "A BILL FOR AN ACT RELATING TO AGRICULTURAL LOANS,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Reduce the number of credit denials required for the
          Department of Agriculture (DOA) loan program;

     (2)  Include credit unions in the definition of "private
          lender"; and

     (3)  Allow the DOA to jointly service and collect on its
          portion of participation loans.

     The DOA submitted testimony in support of this measure and
proposed an amendment which has been incorporated.  The Hawaii
Credit Union League supported the bill as it relates to credit
unions.
 
     Your Committee has amended this measure by adding a
provision to provide low interest financing for agricultural
producers directly affected by state eradication programs.  Such
financing will provide assistance for their recovery and
rehabilitation.


 
 
 
                                 STAND. COM. REP. NO. 302
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Agriculture that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
979, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 979, H.D. 1, and
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Agriculture,



                                   ______________________________
                                   FELIPE P. ABINSAY, JR., Chair