STAND. COM. REP. NO. 231

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 576
                                        S.D. 1




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. 576 entitled: 

     "A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:
     
     The purpose of this measure is to extend the current board
members of the Agribusiness Development Corporation (ADC) an
additional five years and to appropriate an unspecified amount
for the performance of their duties.

     Your Committee received testimony in support of this measure
from the Big Island Farm Bureau and one individual.  The
Department of Agriculture submitted testimony in opposition.

     Your Committee finds that the ADC was established in 1994
to administer an aggressive and dynamic agribusiness development
program to support the transition of Hawaii's agricultural
industry from large-scale, single crop plantations to more
diversified farming operations.

     Your Committee further finds that supporting this transition
remains critical to a continually evolving industry.  If
agriculture is to progress, expand, and flourish, it will need
creative and innovative leadership.  Your Committee believes this
can best be provided by extending the ADC board in its present
form and by expanding the work of the ADC.

     Your Committee has amended this measure accordingly to:

 
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                                   STAND. COM. REP. NO. 231
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     (1)  Provide an unspecified appropriation for four positions
          and general operating expenses of the ADC;

     (2)  Direct the ADC to allot the necessary financial and
          human resources necessary to plan, design, and
          construct an agricultural subdivision in the Hamakua
          district of the Island of Hawaii, with an unspecified
          appropriation for this purpose; and

     (3)  Require the ADC to report annually to the Legislature.

     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. 576, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 576,
S.D. 1, 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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