STAND. COM. REP. NO. 105

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1629
                                        




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. 1629 entitled: 

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

begs leave to report as follows:
     
     The purpose of this measure is to provide interim financing
to the irrigation revolving fund to allow the irrigation systems
to meet operating costs.

     Your Committee received testimony in support of this measure
from the Department of Agriculture and the Hawaii Farm Bureau.

     Your Committee finds that in recent public hearings, the
department met with considerable opposition to proposed rate
increases in water tolls.  While the proposed increases would
move the fund toward a self sustaining operation, current
economic conditions would make higher water costs a hardship for
most farming operations.

     Your Committee believes this measure will continue
operations of the existing water system until an agreement can be
reached with farming communities and the agricultural industry
for increases in water tolls.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this

 
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                                   STAND. COM. REP. NO. 105
                                   Page 2


report, your Committee is in accord with the intent and purpose
of S.B. No. 1629 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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