STAND. COM. REP. NO. 557

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1380
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Agriculture and Water and Land Use, to
which was referred H.B. No. 1380 entitled: 

     "A BILL FOR AN ACT MAKING AN INTERIM APPROPRIATION FOR THE
     DEPARTMENT OF AGRICULTURE, AGRICULTURAL RESOURCE MANAGEMENT
     DIVISION,"

beg leave to report as follows:

     The purpose of this bill is to provide an interim subsidy to
the Rrrigation Revolving Fund to allow:

     (1)  Irrigation systems to meet operating costs; and 

     (2)  Affected parties to recover from the depressed economy.

     Testimony in strong support of the bill was received from
the Hawaii Farm Bureau.  The Department of Agriculture (DOA)
supported the bill provided that it does not replace or adversely
impact priorities indicated in DOA's executive biennium budget.

     Your Committees find that presently, fees being charged to
farmers and ranchers are not sufficient to cover the projected
cost and operating expenses of existing irrigation systems.  The
interim subsidies will help DOA meet its operating costs until an
agreement is reached on a water toll increase.


 
 
 
 
 
                                 STAND. COM. REP. NO. 557
                                 Page 2

 
     As affirmed by the records of votes of the members of your
Committees on Agriculture and Water and Land Use that are
attached to this report, your Committees are in accord with the
intent and purpose of H.B. No. 1380 and recommend that it pass
Second Reading and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Agriculture and
                                   Water and Land Use,

                                   
                                   
                                   
                                   
______________________________     ______________________________
ROMY M. CACHOLA, Chair             FELIPE P. ABINSAY, JR., Chair