STAND. COM. REP. NO.1740

Honolulu, Hawaii

, 2001

RE: H.B. No. 869

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 869 entitled:

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

begs leave to report as follows:

The purpose of this measure is to expand the availability of the state agricultural loan program.

Generally, the bill would allow trusts and other new legal forms of business entities conducting business in the State to qualify for loans under the state agricultural loan program. The bill also eliminates redundant provisions with respect to residency requirements.

Your Committee finds that the purpose of the agricultural loan program is to assist farmers to secure financing for their farms. The program, however, necessarily limits its availability by providing loans only to farmers formed under conventional legal entities.

This bill not only expands the availability of state farm loans by allowing farmers formed under newer forms of legal entities to qualify for state agricultural loans, but also allows farmers to change the form of their legal entity without jeopardizing their farm loan eligibility.

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. 869 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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BRIAN T. TANIGUCHI, Chair