STAND. COM. REP. NO. 1432

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 979
                                        H.D. 2
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 979, H.D. 2, entitled:

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

begs leave to report as follows:

     The purpose of this bill is to assist agricultural loan
applicants by enhancing the Department of Agriculture's
agricultural loan program.

     This bill expands an applicant's lender choices by amending
the definition of "private lender" to include credit unions and
by changing the reference to "farm credit system bank" to
"members of the farm credit system".  The bill also allows the
department to service and collect on its portion of participation
loans with private lenders to eliminate lender collection fees.

     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 H.B.
No. 979, H.D. 2, and recommends that it pass Third Reading.


 
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                                   STAND. COM. REP. NO. 1432
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                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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