STAND. COM. REP. NO. 950

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 374
                                        H.D. 2




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. 374, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:
     
     The purpose of this measure is to appropriate funds to
develop appropriate sites for distribution and consolidation
centers to rent warehouse and cooling facilities in Hawaii and
mainland states, as appropriate, for agricultural products.

     Your Committee received testimony in support of this measure
from the Department of Agriculture, the Office of Hawaiian
Affairs, the Hawaii Farm Bureau Federation, Hawaii Agriculture
Research Center, the Hawaii Food Manufacturers Association, and
one individual.

     Your Committee finds that one of the biggest problems for
Hawaii food manufacturers is getting the products to consumers at
a reasonable cost, particularly for the U.S. mainland and
international markets.  Strategically located consolidation and
distribution centers could lower shipping costs for some
companies by thirty to fifty percent, as well as increase sales.

     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. 374, H.D. 2, and recommends that it pass Second
Reading and be referred to the Committee on Ways and Means.

 
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                                   STAND. COM. REP. NO. 950
                                   Page 2



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



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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