STAND. COM. REP. NO. 195-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2997
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred H.B.
No. 2997 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to increase the maximum amount
of moneys that applicants may borrow from the Aquaculture
Revolving Loan Fund in accordance with specified classes as
follows: 1) Class A, Aquaculture farm ownership and improvement
loans, from $100,000 to $400,000; 2) Class B, Aquaculture
operating loans, from $75,000 to $400,000; and, 3) Class C,
Aquaculture cooperative and corporation loans to purchase or
improve land, building, and equipment, from $250,000 to $500,000,
and, to finance inventories of supplies, warehousing, and
shipping commodities, extension of consumer credit to justified
farmer-members, and other normal operating expenses, from
$150,000 to $300,000.  The term for operating loans to finance
inventories is extended from three to seven years.

     Your Committee finds that aquaculture business cannot
succeed or make necessary expansions because of lack of funding
from lending institutions due to the lack of understanding of the
aquaculture operations.  Your Committee further finds that the
costs for starting and running an aquaculture business have
increased due to intensive technology and the need for capital
funding.


 
 
 
                                 STAND. COM. REP. NO. 195-00
                                 Page 2

 
     The Board of Agriculture and the Mangrove Tropicals
submitted testimonies in support of this bill.

     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.
2997 and recommends that it pass Second Reading 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