STAND. COM. REP. NO. 197-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2404
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Agriculture and Ocean Recreation and
Marine Resources, to which was referred H.B. No. 2404 entitled: 

     "A BILL FOR AN ACT RELATING TO AQUACULTURE,"

beg leave to report as follows:

     The purpose of this bill is to authorize the department of
agriculture to establish and assess fees for aquatic animal and
plant health diagnostic services and for any items or expert
services purchased from the department related to aquaculture
planning, disease management, and the marketing of seafood
products.  Additionally, this measure establishes the Aquaculture
Development Special Fund and defines moneys to be deposited in
the fund and the permitted uses of the moneys deposited in the
fund.  Also, the bill appropriates funds for fiscal year 2000-
2001 to carry out the purposes of the aquaculture development
special fund.

     Your Committees find that the State budgets for aquaculture
development in recent years have declined, particularly in the
critical service area of aquatic animal health management.
Workload in aquaculture disease management has increased
dramatically with more species and farms, increasing the demands
on financial resources.  The procedures, e.g., virology, is also
critical to keep Hawaii competitive in global markets.  With
limited general fund resources and the many demands for general
fund monies, other sources of income must be developed to support
the industry.  Thus, charging fees for aquaculture services is

 
 
 
                                 STAND. COM. REP. NO. 197-00
                                 Page 2

 
one means of raising revenues that can be used to directly
benefit the aquaculture industry.

     Testimonies in support of this bill were received from the
Board of Agriculture, the Hawaii Aquaculture Association, the
Aquatic Farms, and the Mangrove Tropicals, Inc.

     As affirmed by the records of votes of the members of your
Committees on Agriculture and Ocean Recreation and Marine
Resources that are attached to this report, your Committees are
in accord with the intent and purpose of H.B. No. 2404 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
                                   Ocean Recreation and Marine
                                   Resources,

                                   
                                   
                                   
                                   
______________________________     ______________________________
ROY M. TAKUMI, Chair               FELIPE P. ABINSAY, JR., Chair