STAND. COM. REP. NO. 2243

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2745
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred S.B. No. 2745 entitled: 

     "A BILL FOR AN ACT RELATING TO AQUACULTURE,"

begs leave to report as follows:

     The purposes of this measure are to:

     (1)  Allow the Department of Agriculture to establish and
          assess fees for aquatic animal and plant health
          diagnostic services and other expert services related
          to aquaculture;

     (2)  Establish the aquaculture development special fund to
          be used for aquatic disease management programs,
          including state match of federal funds, and for
          research and development; and

     (3)  Appropriate $30,000 out of the fund for fiscal year
          2000-2001 for the purposes of the fund.

     Testimony in favor of this measure was submitted by the
Department of Agriculture, Hawaii Aquaculture Association,
Aquatic Farms, and Mangrove Tropicals, Inc.

     Your Committee finds that the state budget for aquaculture
development has declined in recent years, particularly in the
critical service area of aquatic animal health management.  At
the same time, the workload in disease management has increased

 
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dramatically with more species and farms competing for limited
resources.

     Your Committee has expressed concerns that the fees proposed
in this measure may harm the smaller businesses, but has been
assured by the department that this is not the intent.  The
program intends to charge fees for selected health management
services, and with deposit of these fees and other revenues into
the special fund, will be able to directly benefit the industry.

     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. 2745 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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