STAND. COM. REP. NO.  993

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1121

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1121, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WATER RATES FOR AGRICULTURAL USES,"

begs leave to report as follows:

     The purpose of this bill is to direct the Public Utilities Commission (PUC) to require private entities that furnish water used for agricultural purposes in an area zoned for agricultural use to establish a water rate structure for qualified agricultural users by January 1, 2008.

     The Mayor of Hawaii County, Hawaii Farm Bureau Federation, Maui County Farm Bureau, and Palila Growers, LLC, supported this bill.  The Department of Agriculture supported the intent of this measure.  E-Scape Enterprises and a concerned individual opposed this bill.  The Consumer Advocate and PUC submitted comments.

     Your Committee has amended this measure by deleting the reference to the PUC and making the Board of Agriculture responsible for requiring the private entities described in this bill to establish a water rate structure for qualified agricultural users by January 1, 2008.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1121, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1121, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROBERT N. HERKES, Chair