STAND. COM. REP. NO. 1364_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 5
                                     S.D. 2
                                     H.D. 1

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 S.B.
No. 5, S.D. 2, entitled: 


begs leave to report as follows:

     The purpose of this bill is to provide agricultural loans to
farmers for export purposes and for state eradication programs.

     The Department of Agriculture (DOA) testified in support of
this bill.

     Your Committee notes the recommendation in DOA's testimony
to incorporate the appropriation of funds for loans to farmers in
economically depressed areas.  Your Committee further notes that
the provision of agricultural loans to farmers in economically
depressed areas was established in Act 118, Session Laws of
Hawaii 1998, which created a pilot loan project to facilitate the
development of diversified agriculture in depressed areas.

     Upon careful consideration, your Committee has amended this
bill by:

     (1)  Appropriating $2,500,000 from the Agricultural Loan
          Revolving Fund for fiscal year 1999-2000 for loans to
          farmers in economically depressed areas;

     (2)  Changing the effective date to July 1, 1999; and

                                 STAND. COM. REP. NO. 1364_______
                                 Page 2

     (3)  Making technical, nonsubstantive amendments for clarity
          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 S.B. No. 5,
S.D. 2, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as S.B. No. 5, S.D. 2, H.D.
1, 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