STAND. COM. REP. NO. 2109

Honolulu, Hawaii

RE:    S.B. No. 2639

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Agriculture and Hawaiian Affairs, to which was referred S.B. No. 2639 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:

     (1)  Increase the limits of Class A and B aquaculture loans from $400,000 to $800,000;

     (2)  Make credit denial requirements for aquaculture loans consistent with the requirements for agriculture loans;

     (3)  Create a "new aquaculturist program" within the aquaculture loan program;

     (4)  Transfer and incorporate aquaculture loan funds into the agricultural loan revolving fund; and

     (5)  Increase the expenditure ceiling of the agriculture loan revolving fund up to the combined ceiling total for the agricultural and aquaculture loan revolving funds.

     Testimony in support of this measure was submitted by the Department of Agriculture, Hawaii Aquaculture Association, and Hawaiian Electric Company, Inc.

     Your Committee finds that the aquaculture industry has undergone tremendous growth in recent years.  This measure will assist the aquaculture industry by making the aquaculture loan program more equal to the agricultural loan program and will provide greater flexibility in funding.  The Department of Agriculture currently has two separate programs for agriculture and aquaculture farmers.  This measure would combine the programs and allow for increased loan limits.

     As affirmed by the record of votes of the members of your Committee on Agriculture and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2639 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 Agriculture and Hawaiian Affairs,

____________________________

JILL TOKUDA, Chair