Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Agriculture, to which was referred H.B. No. 861, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to appropriate funds for the continued operation and maintenance of agriculture-related infrastructure on Kauai.

Your Committee received testimony in favor of this measure from the Agribusiness Development Corporation, Kauai County Office of Economic Development, one member for the Kauai County Council, Kauai County Farm Bureau, CEATECH USA, East Kauai Water Users' Cooperative, Pioneer Hi-Bred International, Inc., Saiva Siddhanta Church Kauai's Hindu Monastery, United Horticultural Supply, Gay & Robinson, Inc., BEI, Kauai Economic Development Board, Kauai Chamber of Commerce, and two individuals.

Your Committee finds that Kauai's agriculture industry is at a critical stage due to the recent departure of a major sugar plantation from the Kekaha and Lihue areas. A substantial irrigation infrastructure remains, including hydroelectric generators, a complex electrical distribution network, miles of drainage canal, and pumping stations.

Kauai's agriculture industry is in a position to successfully diversify through the use of the existing infrastructure. By continuing the operation and maintenance of the infrastructure as provided in this measure, Kauai's agriculture industry will have the time needed to transition to and establish diversified agriculture enterprises utilizing that infrastructure.

Your Committee has amended this measure by changing the amount appropriated from the general revenues to be deposited into the Hawaii agricultural development revolving fund from $1 to $540,000.

As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 861, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 861, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.