CONFERENCE COMMITTEE REPORT NO.147

                            Honolulu, Hawaii
                                            , 1999

                            RE:   H.B. No. 1280
                                  H.D. 2
                                  S.D. 2
                                  C.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 1280, H.D. 2, S.D. 2, entitled:

    "A BILL FOR AN ACT RELATING TO AGRICULTURE,"

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this bill is to support the continued
redevelopment of the State's agricultural industry by:

     (1) Changing the composition of the Board of the
         Agribusiness Development Corporation (ADC Board) to
         include persons with expertise in banking, real estate,
         and promotion, and provide more flexibility with regard
         to county representation on the ADC Board;

     (2) Appropriating funds for:


 
 
 
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         (a)  Four positions and other operating expenses
              relating to the ADC; and

         (b)  The planning, design, and construction of an
              agricultural subdivision in the Hamakua district of
              the island of Hawaii;

     (3) Requiring ADC to allot financial and human resources to
         plan, design, and construct an agricultural subdivision
         in the Hamakua district; and

     (4) Requiring the ADC Board to submit annual reports to the
         Legislature with regard to:

         (a)  Development of the Hamakua agricultural
              subdivision;

         (b)  Technical support to small, start-up farming
              operations;

         (c)  Farm credit from public and private sources;

         (d)  New, start-up farming operations;

         (e)  Tax incentives and their effects on diversified
              agricultural operations; and

         (f)  Transport and distribution programs.

     Your Committee on Conference has amended this bill by
deleting all provisions in the bill except for:

     (1) Retaining the provision that changes the composition of
         the ADC Board to include persons with expertise in
         banking, real estate, and promotion, and provide more
         flexibility with regard to county representation on the
         ADC Board; and

     (2) Adding provisions that:

         (a)  Enable ADC to develop, promote, assist, and market
              export crops and other crops for local markets
              without the approval of the Board of Agriculture
              (BOA);

         (b)  Specify that members of the ADC Board consist of
              the members of the BOA, effective July 1, 2001; and


 
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         (c)  Appropriate the sum of $400,000 for fiscal year
              1999-2000 for the expenses incurred in the
              performance of the duties of the ADC Board.

     Your Committee on Conference is in accord with the intent
and purpose of H.B. No. 1280, H.D. 2, S.D. 2, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as H.B. No. 1280, H.D. 2, S.D. 2, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
           SENATE                              HOUSE
                                   
                                   
                                   
______________________________     ______________________________
LORRAINE R. INOUYE, Co-Chair       FELIPE P. ABINSAY, JR., Co-
                                   Chair
                                   
                                   
                                   
______________________________     ______________________________
ANDREW LEVIN, Co-Chair             DWIGHT Y. TAKAMINE, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
JAN YAGI BUEN, Member              JERRY L. CHANG, Member
                                   
                                   
                                   
______________________________     ______________________________
BRIAN T. TANIGUCHI, Member         SCOTT K. SAIKI, Member
                                   
                                   
                                   
______________________________     ______________________________
SAM SLOM, Member                   CHRIS HALFORD, Member