Hawaii House Bill HB681

Hawaii 2022 Regular Session

• Introduced: 1/25/21
• Refer: 1/27/21
• Report Pass: 2/8/21
• Refer: 2/8/21
• Report Pass: 2/19/21
• Refer: 2/19/21

Caption

Relating To Management Of State Funds.

Impact

By implementing the linked investment concept, the bill seeks to bolster the financial health of agriculture in Hawaii. It allows eligible borrowers—defined as individuals or entities engaged in agricultural activities—to obtain loans at favorable terms, with financial backing from the state through certificates of deposit held by lending institutions. This approach aims to ease the financial burdens faced by those in the agriculture sector and could lead to improved economic stability for communities dependent on agricultural production.

Summary

House Bill 681, also known as the Linked Investment Program for Agriculture, was introduced to support Hawaii's agricultural sector, which has experienced significant disruptions due to recent natural disasters. The bill aims to establish a linked investment framework that allows the director of finance to allocate up to $5 million from state funds into a program that will help provide loans to agricultural enterprises through eligible lending institutions. The intention is to diversify Hawaii's agricultural economy, support minority-owned businesses, and promote rural employment by enabling farmers and related businesses to secure financing for sustainable practices and operations.

Sentiment

The sentiment surrounding HB 681 has been generally supportive among legislators, particularly those advocating for economic aid in the agricultural sector. Proponents believe that creating access to funds through this program is a critical step in reviving and sustaining agriculture, which has faced severe challenges. However, concerns have been raised regarding the adequacy of funding and the potential bureaucratic hurdles that may arise in the application and qualification processes for borrowers.

Contention

While the bill promotes positive intervention in the agricultural economy through enhanced access to capital, discussions have also highlighted potential contentions regarding its implementation. Critics emphasize the importance of ensuring that the funds are distributed efficiently and equitably to benefit a broad range of agricultural businesses, without creating barriers for smaller farms that may lack the resources to navigate complex financial applications. The debate underscores essential issues related to the prioritization of funding and the effectiveness of support measures tailored to agricultural enterprises.