STAND. COM. REP. NO. 1298

Honolulu, Hawaii

RE:    H.B. No. 1222

       H.D. 2

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Water, Land, Agriculture, and Hawaiian Affairs, to which was referred H.B. No. 1222, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO LOANS FOR AGRICULTURAL AND AQUACULTURE PURPOSES,"

begs leave to report as follows:

     The purpose of this measure is to support agriculture and aquaculture in the State.

     Specifically, this measure creates a new aquaculturists program similar to the new farmer program to help establish new aquaculture operations, increases the aquaculture loan limits for Class A & B loans to $800,000, makes aquaculture loan credit denial requirements identical to those of the agricultural loan program, and combines the aquaculture and agriculture revolving and reserve funds to provide flexibility.

     Testimony in support of this measure was submitted by the Department of Agriculture, Office of Hawaiian Affairs, Hawaii Agriculture Research Center, Hawaii Aquacultural Association, and the Hawaii Farm Bureau.

     Your Committee finds that the aquaculture industry has undergone tremendous growth within the State.  Your Committee notes the significant increase in costs associated with aquaculture including facilities, operating inputs, and transportation.  Your Committee finds, therefore, that it is appropriate to raise the loan limit and to establish parity between the aquaculture and agriculture loan programs.

      This measure was amended to conform to the language of Senate Bill No. 1308, S.D. 1, which has substantially similar language with the exception of:

     (1)  An effective date of July 1, 2007; and

     (2)  Various technical and grammatical differences.

     Technical, nonsubstantive changes for the purposes of clarity and consistency were also made.

     As affirmed by the record of votes of the members of your Committee on Water, Land, Agriculture, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1222, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1222, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water, Land, Agriculture, and Hawaiian Affairs,

____________________________

RUSSELL S. KOKUBUN, Chair