STAND. COM. REP. NO. 35

                                Honolulu, Hawaii
                                                  , 1999

                                RE:  S.B. No. 1060
                                     




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 S.B. No. 1060 entitled: 

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

begs leave to report as follows:
   
   The purposes of this measure are to:

   (1)  Include credit unions in the definition of a "private
       lender";

   (2)  Reduce the number of credit denials required for the
       Department of Agriculture's loan program; and

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

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

   Your Committee finds this measure will streamline the loan
process, clarify applicable agricultural loan statutes, and
increase the program's flexibility.  These amendments will
provide better and faster loan services to farmers, as well as
increase efficiency and cost savings to the State.

   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

 
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                                STAND. COM. REP. NO. 35
                                Page 2


of S.B. No. 1060 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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