STAND. COM. REP. NO. 2690

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2782
                                        S.D. 1




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

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 2782 entitled: 

     "A BILL FOR AN ACT RELATING TO BIOLOGICAL MATERIALS,"

begs leave to report as follows:

     The purpose of this measure is to facilitate the growth and
development of the biotechnical industry in the State by
protecting intellectual property rights in biological materials.

     The Department of Business, Economic Development, and
Tourism, Board of Agriculture, Hawaii Technology Trade
Association, Glaxowellcome, and the Hawaii Technology Development
Corporation submitted testimony on the measure. 

     Your Committee finds that in order to stimulate further
biotechnological research in the State and the development of the
State's biotechnical industry, current law needs to be clarified
with respect to ownership of biological materials and trade
protections afforded biological materials.  This measure provides
that clarification by establishing personal property rights in
biological materials and broadening the definition of trade
secrets to include biological materials. 

     Your Committee further finds that the creation of property
rights in biological materials raises questions as to the scope
of the rights being established and the type of materials covered
under this measure.  Additionally, the Department of Agriculture
expressed concerns about the measure's impact on its review and

 
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permitting processes for the importation of non-domestic animals
and microorganisms.  Therefore, in order to allow for further
discussion and clarification, your Committee has delayed the
measure's effective date to July 1, 2010.  Additional,
nonsubstantive amendments were made for purposes of clarity.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 2782, as amended herein, and recommends that
it pass Third Reading in the for attached hereto as S.B.
No. 2782, S.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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