STAND. COM. REP. NO. 764

Honolulu, Hawaii

RE:    S.B. No. 993

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 993, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to amend provisions relating to the New Farmer Program to provide incentives for individuals to choose farming as a career.

     More specifically, this measure:

(1)  Amends the term "new farmer program" to "new farmer";

(2)  Expands the definition of "new farmer" to include a person who graduated from a farm trainee program;

(3)  Establishes farm innovation loans as a new type of class F loan; and

(4)  Excepts from the restrictions of section 155-3, Hawaii Revised Statutes, relating to credit denials, new farmer and farm innovation program loans for less than $100,000 for farmer trainees and recent college graduates with a degree in agriculture.

     Written comments in support of this measure were submitted by the Department of Agriculture, the Hawaii Farm Bureau Federation, and the Ulupono Initiative.

     Your Committee finds that the current population of farmers is aging and that providing incentives for new farmer loans and enhancements to the New Farmer Program will encourage younger individuals to choose farming as a career.  Your Committee also finds that this measure will provide well-trained farmers in the State and encourage the development of new and innovative farming techniques.

     Your Committee has amended this measure by:

(1)  Amending the effective date of this Act to July 1, 2050, to further discussion on the matter; and

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

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 993, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 993, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair