STAND. COM. REP. NO. 1427

Honolulu, Hawaii

RE:    S.C.R. No. 3

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Water, Land, Agriculture, and Hawaiian Affairs, to which was referred S.C.R. No. 3 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF AGRICULTURE TO STUDY THE EFFECTIVENESS OF VAPOR HEAT TREATMENT FOR NEUTRALIZING FRUIT FLIES ON FRUITS AND VEGETABLES FOR INTERSTATE RETAIL DISTRIBUTION,"

begs leave to report as follows:

     The purpose of this measure is to protect and promote Hawaii's agricultural export market by requesting the Department of Agriculture to study the effectiveness of vapor heat treatment for neutralizing fruit flies on fruits and vegetables for interstate retail distribution, and submit a written report of its findings and recommendations to the Legislature.

     Testimony in support of this measure was submitted by the Department of Agriculture.

     Vapor heat treatment is primarily used for fruits and vegetables that are hosts for fruit flies, and is an approved treatment of Hawaii grown vegetables and fruits intended for mainland retail distribution.  Your Committee finds that although further study of the effectiveness of vapor heat treatment will assist in promoting Hawaii's agricultural export market, this type of study is already within the purview of the Department of Agriculture's responsibilities.

     Accordingly, your Committee has amended this measure by deleting its contents and inserting similar language from S.B. No. 561, S.D. 1, that requests the Public Utilities Commission to study the rate structures of private entities that furnish water used for agricultural purposes.  Your Committee finds that the rate structures and fees for the use of water from privately-owned water sources for agricultural purposes in an area zoned for agricultural use may differ among each privately-owned water source.  A uniform rate and fee structure that is comparable to the water rate structure used by the board of water supply of each respective county will allow farmers to continue to maintain agricultural production in Hawaii.

     Specifically, this measure, as amended, requests that the Public Utilities Commission study the rate and fee structures of private entities statewide that furnish water used for agricultural purposes in areas zoned for agricultural use, and further requests that the Public Utilities Commission:

     (1)  Perform an inventory of all privately-owned water systems statewide that are used for agricultural purposes;

     (2)  Examine and distinguish water rate and fee structures of privately-owned water systems used for agricultural purposes, established by local county boards of water supply, and for residential purposes; and

     (3)  Seek input, collaboration, and guidance from the Department of Agriculture, the College of Tropical Agriculture and Human Resources at the University of Hawaii, the Hawaii Farm Bureau Federation, and each county board of water supply; and

submit a written report to the Legislature of its findings and recommendations before the convening of the 2008 Regular Session.

     As affirmed by the record of votes of the members of your Committee on Water, Land, Agriculture, and Hawaiian Affairs that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 3, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 3, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Water, Land, Agriculture, and Hawaiian Affairs,

____________________________

RUSSELL S. KOKUBUN, Chair