STAND. COM. REP. NO. 2851

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2997
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development, 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 measure is to increase the authorization
for aquaculture loans.

     Your Committee received testimony in support of this measure
from the Board of Agriculture, Hawaii Aquaculture Association,
Oceanic Institute, and Mangrove Tropicals.

     This measure increases the amounts that the Department of
Agriculture may loan from the aquaculture loan revolving fund, as
follows:

     (1)  Class A loans for farm ownership from $100,000 to
          $400,000;

     (2)  Class B loans for aquaculture farm activities from
          $75,000 to $400,000;

     (3)  Class C facility loans from $250,000 to $500,000; and

     (4)  Class C operating loans from $150,000 to $300,000.

This measure also increases the loan period for operating loans
from three to seven years.

 
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                                   STAND. COM. REP. NO. 2851
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     Your Committee finds that the costs of starting and running
an aquaculture business have increased.  Aquaculture in Hawaii
tends to be technology intensive, and therefore is capital
intensive.  This measure makes loan limits for aquaculture
equivalent to general agriculture.  Your Committee believes that
this measure will encourage the development of the aquaculture
industry in Hawaii, which is an economic stimulus.  It is the
intent of your Committee to particularly help entrepreneurs and
small companies, which is the traditional base of Hawaii's
aquaculture industry.

     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. 2997 and recommends that it pass Second Reading and
be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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