Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Transportation, Military Affairs and Government Operations and Agriculture, to which was referred H.B. No. 1941 entitled:

beg leave to report as follows:

The purpose of this measure is to make permanent the public utility commission rate exemption for the transportation of seed corn to a processing facility.

Testimony supporting this measure was received from the Department of Agriculture, Hawaii Farm Bureau Federation, Kauai County Farm Bureau, Hawaii Crop Improvement Association, Hawaii Agriculture Research Center, and Pioneer HI-Bred International, Inc. Comments were received from the Public Utilities Commission.

Your Committees find that the seed crop industry in Hawaii, ninety-three percent of which is seed corn, is a burgeoning industry that has accomplished visible and significant progress since 1997. The seed crop industry utilizes over 8,000 acres of land previously in sugar production and is a prime example of the transition to diversified agriculture in Hawaii. This measure further ensures that the seed corn industry in Hawaii will be allowed to flourish in a supportive atmosphere.

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs and Government Operations and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1941, and recommend that it pass Second Reading and be referred to the Committee on Commerce, Consumer Protection and Housing.