Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Water, Land, and Agriculture, to which was referred S.R. No. 119 entitled:

begs leave to report as follows:

The purpose of this measure is to request the auditor to conduct a study to determine the multiplier effect of the agricultural industry in Hawaii's economy.

Testimony in support of this measure was submitted by the Department of Agriculture, the Dean of the University of Hawaii College of Tropical Agriculture and Human Resources, the Hawaii Crop Improvement Association, the Hawaii Farm Bureau Federation, Maui Land & Pineapple Company, Meadow Gold Dairies, the Pineapple Growers Association of Hawaii, and one individual.

Your Committee finds that there is a need for business and government policy makers to be informed of the multiplier effect for increases or decreases in agricultural production on employment, purchases of agricultural inputs, and consumer spending on goods and services. Currently, there are mathematical techniques that may be used to measure the multiplier effect on numerous factors; however, those models typically do not address or conform to Hawaii's unique economy. This measure requests a study to establish models that are appropriate for Hawaii.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 119, as amended herein, and recommends its adoption in the form attached hereto as S.R. No. 119, S.D. 1.