STAND. COM. REP. NO. 103

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1431
                                        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 S.B. No. 1431 entitled: 

     "A BILL FOR AN ACT RELATING TO THE ESTABLISHMENT OF AN
     AGRICULTURAL WATER SYSTEM FOR UPCOUNTRY MAUI,"

begs leave to report as follows:
     
     The purpose of this measure is to establish a separate
agricultural water supply and delivery system for the farms in
the upcountry region on Maui.

     Your Committee received testimony in support of this measure
from the Department of Agriculture, the Maui County Office of the
Mayor and Department of Water Supply, the Central Maui Soil and
Water Conservation District, and one individual.

     Your Committee finds that the upcountry agricultural area is
primarily dependent on surface water from the lower Kula system.
The opening of 6,000 acres of Hawaiian homelands in Waiohuli and
Keokea will further decrease the available supply of agricultural
water to the existing farms.  Your Committee further finds that
in addition to the insufficient amount of water available, the
agricultural industry is faced with escalating water rates.

     Your Committee believes an adequate and inexpensive supply
of water is critical to farming operations in upcountry Maui and
is in support of this measure.


 
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                                   STAND. COM. REP. NO. 103
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     Your Committee has heard a concern regarding the
establishment of a special account in the irrigation revolving
fund.  Separating one system under a special account would mean
all costs for operating that system would be borne entirely by
the users, who may have to pay different rates as a result.  Your
Committee has amended the measure accordingly to delete
establishment of a separate special account in the irrigation
revolving fund.

     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 S.B. No. 1431, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 1431,
S.D. 1, and be referred to the Committee on Ways and Means.

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



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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