STAND. COM. REP. NO.  379

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 401

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred H.B. No. 401 entitled:

"A BILL FOR AN ACT RELATING TO IMPORTANT AGRICULTURAL LANDS LOAN GUARANTY,"

begs leave to report as follows:

     The purpose of this bill is to provide loan incentives for projects on important agricultural land by authorizing the Director of Finance to guarantee loans, made by commercial lenders authorized to do business in the state, to agricultural producers for the development and implementation of agricultural projects.

     The Hawaii Crop Improvement Association, Hawaii Agriculture Research Center, and Maui County Farm Bureau supported this bill.  The Department of Agriculture and the Hawaii Farm Bureau Federation supported this bill with amendments.  The Department of Budget and Finance supported the intent of this bill. 

     Your Committee has amended this measure by:

     (1)  Establishing a cap of $2,500,000 for each loan;

     (2)  Reducing the maximum amount of the loan guaranty from 100 percent to 85 percent; and

     (3)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     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. 401, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 401, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

CLIFT TSUJI, Chair