Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Agriculture and Water, Land, Energy and Environment, to which was referred H.B. No. 1939, H.D. 2, entitled:

beg leave to report as follows:

The purpose of this measure is to authorize the issuance of general obligation bonds and appropriate corresponding funds for the development and maintenance of agricultural water systems in the State.

Testimony supporting this measure was received from the Department of Agriculture, Hawaii Farm Bureau Federation, Maui County Farm Bureau, Hawaii Agriculture Research Center, Kauai County Farm Bureau, Hawaii Leeward Planning Conference, East Kauai Water Users' Cooperative, Hawaii Macadamia Nut Association, Honomalino Irrigation Cooperative, Mother Goose Farms, Gay & Robinson, Inc., Pineapple Growers Association of Hawaii, MacFarms of Hawaii, Land Use Research Foundation of Hawaii, Big Island Farm Bureau, Agro Resources, Inc., University of Hawaii College of Tropical Agriculture and Human Resources, Saiva Siddhanta Church, and Ka Lahui Hawaii.

Your Committees find that Hawaii's agricultural industry is growing, as there is further diversification in the types of agricultural products being developed, grown, and processed in Hawaii. The State has been successful in implementing various programs that promote diversified agriculture, however, more needs to be done to support Hawaii's basic agriculture infrastructure. This measure appropriates the necessary funds to develop and maintain agricultural water systems in the State and, thus, support Hawaii's growing agriculture industry.

Your Committees have amended this measure by specifying the amount of the general obligation bonds issuance and corresponding appropriation to be $40,285,000 with $5,000,000 to be for federal aid financing or reimbursement for the following projects: Upcountry Maui Watershed Project, Lower Hamakua Ditch Watershed Project, Kekaha Drainage and Irrigation System, East Kauai Irrigation System, Honomalino Irrigation Watershed Project, West Maui Irrigation System, Molokai Irrigation System, Waiahole Irrigation System, Waimanalo Irrigation Watershed Project, Waimea Irrigation System, and the State Agriculture Water and Use Development Plan. In addition, your Committees have clarified that the sum to be expended is that appropriated in section 2 of the measure.

As affirmed by the records of votes of the members of your Committees on Agriculture and Water, Land, Energy and Environment that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1939, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1939, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.