Honolulu, Hawaii
                                                     , 1999

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

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


     Your Committee on Ways and Means, to which was referred S.B.
No. 5, S.D. 1, entitled: 


begs leave to report as follows:

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

     Your Committee finds that the State has not encouraged the
export potential of local industries as much as it can or should.
The agriculture industry is an example of an industry with export
potential that is relatively untested and undefined.  This bill
provides state support through agricultural loans to encourage
farmers to exploit the export potential of their goods and

     Your Committee also finds that local farmers need state
assistance if they are the subject of state eradication programs.
This bill also provides loan assistance to such farmers to enable
them to recuperate from losses suffered as a result of state
eradication programs.

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                                   STAND. COM. REP. NO. 599
                                   Page 2

     Your Committee has amended the bill by:

     1.   Clarifying that the eradication programs refer to
          farmers who have been subject to any state eradication

     2.   Redrafting the proposed language relating to
          eradication programs in section 2 of the bill; and

     3.   Making other technical changes that have no substantive

     Finally, your Committee is aware of a possible conflict
between the proposed provision regarding farm loans for export
purposes and the functions of the Agribusiness Development
Corporation.  It is the intent of your Committee that this bill
not establish duplicative state functions and that the Department
of Agriculture and the Agribusiness Development Corporation
develop rules or guidelines, at their discretion, to qualify and
distinguish the assistance provided by their respective agencies
to prevent such duplication.

     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. 5,
S.D. 1, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 5, S.D. 2.

                                 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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