STAND. COM. REP. NO. 854________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1628

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Finance, to which was referred H.B. No.
1628 entitled: 


begs leave to report as follows:

     The purpose of this bill is to provide financial assistance
for diversified agricultural interests by:

     (1)  Authorizing the Department of Agriculture (DOA) to
          underwrite and service loans for cooperating private
          lenders and government loan programs that provide loans
          to qualified farmers; and

     (2)  Allowing the Employees' Retirement System to invest in:

          (A)  Obligations secured by mortgages on farm land
               guaranteed by the DOA; and

          (B)  Obligations for the repayment of loans guaranteed
               by the DOA.

     The DOA testified in support of this measure.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1628 and recommends that it pass Third Reading.

                                 STAND. COM. REP. NO. 854________
                                 Page 2

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

                                   DWIGHT Y. TAKAMINE, Chair