STAND. COM. REP. NO. 1191

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 949
                                        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. 949, 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 authorize and direct the
Agribusiness Development Corporation to establish agricultural
subdivisions.

     Your Committee received testimony in support of this measure
from the Agribusiness Development Corporation (ADC), the Hawaii
Farm Bureau Federation, the Big Island Farm Bureau, and two
individuals.

     Your Committee finds that on January 22, 1999, the Board of
the ADC approved a motion to support legislative measures
providing for an agricultural subdivision in Hamakua, and a
report by the ADC further identified two parcels for the proposed
agricultural subdivision.  Your Committee further finds that the
designated parcels are located below the Hamakua ditch, with
plantation installed irrigation mains already in place.

     Your Committee believes that an agricultural subdivision of
smaller size parcels will enable more farmers to use these lands
at affordable prices.  Your Committee has amended this measure
to:


 
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                                   STAND. COM. REP. NO. 1191
                                   Page 2


     (1)  Expand the purpose section to allow persons owning
          property within an agricultural district to subdivide
          the property into leasehold lots to be used for
          intensive agricultural subdivisions;

     (2)  Add two new sections to Chapter 205, Hawaii Revised
          Statutes, to authorize intensive agricultural
          subdivisions for lot sizes not less than twenty acres;
          and

     (3)  Clarify the collection and payment actions of the ADC
          with respect to agricultural subdivisions, and to
          delete collection of master lease rent.

     In amending this measure, your Committee has incorporated
portions of S.B. No. 1211, heard previously in this Committee.

     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. 949, H.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 949, H.D. 2, 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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