STAND. COM. REP. NO. 37

                                Honolulu, Hawaii
                                                  , 1999

                                RE:  S.B. No. 1064
                                     




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. 1064 entitled: 

   "A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR THE
   AGRIBUSINESS DEVELOPMENT CORPORATION,"

begs leave to report as follows:
   
   The purpose of this measure is to appropriate funds out of
the agriculture development revolving fund to allow the
Agribusiness Development Corporation (ADC) to reimburse the
papaya industry for securing patent licenses needed to
commercialize the transgenic papaya, and to allow the ADC to
carry out its ongoing projects.

   Your Committee received testimony in support of this measure
from the Agribusiness Development Corporation.

   Your Committee finds that as a result of devastation to the
papaya industry caused by the ringspot virus disease, the ADC
authorized a project to assist the industry in securing the
patent licenses for a disease-resistant papaya.  Reimbursement to
the industry for the patent licenses will exceed the sums
currently appropriated from the revolving fund to the ADC.

   Your Committee further finds that this is a request to
increase the spending ceiling of the revolving fund for fiscal
year 1998-1999, not a request for additional general funds.  Your
Committee is in support of this measure to provide critical
assistance to the State's papaya industry.

 
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                                STAND. COM. REP. NO. 37
                                Page 2



   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. 1064 and recommends that it pass Second Reading 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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