Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1635
                                     H.D. 2

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


     Your Committee on Agriculture, to which was referred H.B.
No. 1635, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to support economic growth in
economically depressed areas by appropriating funds to farmers in
these areas.

     The Department of Agriculture (DOA), the Big Island Farm
Bureau, and the Hawaii Farm Bureau Federation submitted testimony
in support of this measure.

     Your Committee notes that the provision of agricultural
loans to farmers in economically depressed areas was established
in Act 118, Session Laws of Hawaii 1998, which established a
pilot loan project to facilitate the development of diversified
agriculture in the depressed areas.  According to DOA's
testimony, the DOA was overwhelmed by growers who were interested
in obtaining these low-interest loans at its initial offering.
Your Committee recognizes the strong demand for investment
capital beyond what commercial institutions are willing or
prepared to offer.

     Your Committee has amended this bill by:

     (1)  Appropriating the funds from the Agricultural Loan
          Revolving Fund rather than the general fund; and

                                 STAND. COM. REP. NO. 559
                                 Page 2


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

     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.
1635, H.D. 1, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 1635, H.D.
2, and be referred to the Committee on Finance.

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

                                   FELIPE P. ABINSAY, JR., Chair