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 S.B. No. 1300 entitled:

begs leave to report as follows:

The purpose of this measure is to encourage diversified agriculture on Kauai by appropriating funds to allow the Agribusiness Development Corporation to provide for the uninterrupted operation and maintenance for one year of the infrastructure systems servicing the Kekaha and Lihue plantation areas.

Your Committee received testimony in favor of this measure from the Agribusiness Development Corporation, Office of Economic Development of Kauai County, Department of Water of Kauai County, Kauai County Farm Bureau, West Kauai Agri-Products Inc., East Kauai Water Users' Cooperative, Syngenta, Gay & Robinson, Inc., Saiva Siddhanta Church Kauai's Hindu Monastery, CEATECH USA, and one individual.

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 increasing the appropriated amount 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 S.B. No. 1300, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1300, S.D. 1, and be referred to the Committee on Ways and Means.