STAND. COM. REP. NO. 232

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 784
                                        




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. 784 entitled: 

     "A BILL FOR AN ACT MAKING AN APPROPRIATION FOR BIG ISLAND
     PAPAYA INDUSTRY,"

begs leave to report as follows:
     
     The purpose of this measure is to appropriate $150,000 for
the papaya industry on the island of Hawaii to develop new
markets and expand existing markets in foreign countries.

     Your Committee received testimony in support of this measure
from the Department of Agriculture, the University's College of
Tropical Agriculture and Human Resources, the Big Island Papaya
Growers Association, and the Hawaii Papaya Industry Association.

     Your Committee finds that in 1993, the State's papaya
production was sixty-four million pounds.  As a result of the
ring spot virus, production has dropped to thirty-five million
pounds and foreign suppliers have taken over many of Hawaii's
former markets.

     Your Committee further finds that the industry is recovering
with the transgenic papaya, new acreage has been planted, and
production levels are expected to reach sixty-three million
pounds between 2001 and 2002.  Your Committee is in support of
this measure and believes it will help develop markets for Hawaii
papaya and reestablish the State's dominance in Canadian,
Japanese, and U.S. mainland markets.

 
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                                   STAND. COM. REP. NO. 232
                                   Page 2



     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. 784 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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