STAND. COM. REP. NO. 720
RE: H.B. No. 1248
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Sixth State Legislature
Regular Session of 2011
State of Hawaii
Your Committee on Finance, to which was referred H.B. No. 1248 entitled:
"A BILL FOR AN ACT RELATING TO AGRICULTURAL LOANS,"
begs leave to report as follows:
The purpose of this bill is to provide affordable access to loans for new farmers by enhancing the New Farmer Program (Program). Specifically, this bill:
(1) Reduces the number of credit denials required to qualify for the Program from two to one;
(2) Changes the annual interest rate on Program loans from six percent to a rate of one and one-half percent below the prime rate or six percent, whichever is less;
(3) Raises the ceiling on Program loans from $100,000 to $250,000; and
(4) Appropriates funds for the Program.
The Department of Agriculture and the Hawaii Farm Bureau Federation supported this bill.
Your Committee has amended this measure by:
(1) Changing its effective date to July 1, 2030, to encourage further discussion; and
(2) Making technical, nonsubstantive amendments for style, clarity, and consistency.
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. 1248, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1248, H.D. 1.
Respectfully submitted on behalf of the members of the Committee on Finance,
MARCUS R. OSHIRO, Chair