STAND. COM. REP. NO. 34

                                Honolulu, Hawaii
                                                  , 1999

                                RE:  S.B. No. 480
                                     




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. 480 entitled: 

   "A BILL FOR AN ACT RELATING TO MEASUREMENT STANDARDS,"

begs leave to report as follows:
   
   The purpose of this measure is to add three new terms that
may be used on the label of raw or processed macadamia nuts grown
in Hawaii.

   Your Committee received testimony in support of this measure
from the Hawaii Food Industry Association and Mauna Loa Macadamia
Nut Corporation.  The Department of Agriculture submitted
testimony in opposition.

   Your Committee finds that while the successful macadamia nut
industry started in Hawaii, foreign competition is growing.
Australia recently surpassed Hawaii as the world's largest
producing region, and growers in Central and South America and
Africa are expanding as well.

   Your Committee further finds that creating a stronger image
for Hawaii's macadamia nuts is critical to maintaining market
share, and that this measure will provide the industry with
additional flexibility in labeling and marketing Hawaii grown
products worldwide.

   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. 34
                                Page 2


report, your Committee is in accord with the intent and purpose
of S.B. No. 480 and recommends that it pass Second Reading and be
referred to the Committee on Commerce and Consumer Protection.

                                Respectfully submitted on
                                behalf of the members of the
                                Committee on Economic
                                Development,



                                ______________________________
                                LORRAINE R. INOUYE, Chair

 
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