STAND. COM. REP. NO. 1189

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 138
                                        H.D. 2
                                        S.D. 1




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

Sir:

     Your Committee on Economic Development, to which was
referred H.B. No. 138, H.D. 2, entitled: 

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

begs leave to report as follows:
     
     The purpose of this measure is to require certification of
ownership and movement of agricultural products.

     Your Committee received testimony in support of this measure
from the Department of Agriculture (DOA), the Hawaii Agriculture
Research Center, the Hawaii Farm Bureau Federation, and the
Pineapple Growers Association of Hawaii.  The Hawaii Food
Industry Association submitted comments.

     Your Committee finds that the theft of agricultural goods is
a major problem for farmers in Hawaii.  Currently, there is
little recourse for a grower because it is difficult to prove
ownership of agricultural goods, and farmers lose both goods and
profits to resourceful thieves.

     Your Committee further finds that while the certificate
required in this measure will create some additional paperwork,
it is not burdensome, and will assist farmers in protecting their
agricultural products.

     Your Committee has amended this measure to:


 
a                                                     HB138 SD1
                                   STAND. COM. REP. NO. 1189
                                   Page 2


     (1)  Add a value of at least $100 for the agricultural
          goods;

     (2)  Include aquaculture products, flowers, and other
          ornamentals; and

     (3)  Make technical, nonsubstantive amendments.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 138, H.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 138, H.D. 2, S.D. 1, and be referred to the Committee on
Judiciary.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
a                                                     HB138 SD1