Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1280
                                     H.D. 1

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


     Your Committee on Agriculture, to which was referred H.B.
No. 1280 entitled: 


begs leave to report as follows:

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

     (1)  Extending the current composition of the Agribusiness
          Development Corporation (ADC) Board for five years,
          until July 1, 2004; and

     (2)  Appropriating funds for the expenses incurred by the
          ADC Board.

     The Big Island Farm Bureau, the Hawaii Farm Bureau
Federation, the Hamakua County Farm Bureau, and an individual
submitted testimony in support of the measure.  The Department of
Agriculture testified in opposition to the measure.

     Upon further consideration, your Committee has amended this
bill by:

     (1)  Changing the composition of the ADC Board;

     (2)  Giving the Governor, rather than the Senate President
          and the House Speaker, the authority to appoint eight
          members to the ADC Board;

                                 STAND. COM. REP. NO. 680
                                 Page 2

     (3)  Changing the selection requirements for the ADC Board
          to include knowledge, experience, and expertise in
          banking, real estate, and promotion;

     (4)  Extending the ADC Board under its new composition as
          specified in the bill for two years until June 30,
          2001, rather than extending the ADC Board under its
          current composition for five years until June 30, 2004;

     (5)  Enabling ADC to develop, promote, assist, and market
          export crops and other crops for local markets without
          the Board of Agriculture's approval; and

     (6)  Making technical, nonsubstantive amendments for
          purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your
Committee on Agriculture that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1280, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 1280, H.D. 1, and
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Agriculture,

                                   FELIPE P. ABINSAY, JR., Chair