STAND. COM. REP. NO. 3365

Honolulu, Hawaii

RE:    H.B. No. 2179

       H.D. 1

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 2179, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LOWER HAMAKUA DITCH,"

begs leave to report as follows:

     The purpose and intent of this measure is to support the State's agricultural industry by limiting the toll that the Board of Agriculture may charge for water from the Lower Hamakua Ditch.

     Your Committee received written comments in support of this measure from the Hawaii Farm Bureau Federation and the Ulupono Initiative.  The Department of Agriculture submitted written comments on the measure.

     Your Committee finds that the high cost of water is deterring farmers and ranchers from expanding their operations and increasing efficiency in the area served by the Lower Hamakua Ditch.  Stabilizing the water rate in this area will provide an incentive for farmers to grow additional crops and for ranchers to grass feed their livestock instead of utilizing expensive imported feeds.

     Your Committee has amended this measure by making technical nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2179, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2179, H.D. 1, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair