Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Water, Land Use, and Hawaiian Affairs and Agriculture, to which was referred S.B. No. 1257 entitled:

beg leave to report as follows:

The purpose of this measure is to repeal the Irrigation Water Development Special Fund (Fund).

The Board of Agriculture, Maui Farm Bureau, Hawaii Farm Bureau, and Pineapple Growers Association of Hawaii testified in support of this measure.

Recent closures of several major sugar operations in Hawaii have resulted in numerous irrigation systems falling into disrepair and many being abandoned. Your Committees find that the Department of Agriculture was authorized by section 167-22.5, Hawaii Revised Statutes, to issue revenue bonds for the purpose of acquiring and improving these irrigation systems, with the bond proceeds being deposited into the Fund.

However, the Fund was never utilized since the creation of the Agribusiness Development Corporation, which is now responsible for acquiring and improving former irrigation systems. Thus, the Fund remains inactive and is no longer necessary.

As affirmed by the records of votes of the members of your Committees on Water, Land Use, and Hawaiian Affairs and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1257 and recommend that it pass Second Reading and be referred to the Committee on Finance.