Honolulu, Hawaii
                                                     , 1999

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

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


     Your Committee on Economic Development, to which was
referred H.B. No. 1280, H.D. 2, entitled: 


begs leave to report as follows:
     The purpose of this measure is to:

     (1)  Change the composition of the board of the Agribusiness
          Development Corporation (ADC) and delete the
          requirement that the Governor appoint the board;

     (2)  Delete approval by the Board of Agriculture for
          marketing activities of the ADC;

     (3)  Amend Act 176, Session Laws of Hawaii 1998, to delete
          the requirement that the board of the ADC shall consist
          of members of the Board of Agriculture; and

     (4)  Appropriate funds for the expenses of the ADC.

     Your Committee received testimony in support of this measure
from the Hawaii Farm Bureau Federation, the Big Island Farm
Bureau, the Hamakua County Farm Bureau, the Agriculture Committee
of the Hawaii Island Economic Development Board, and one

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                                   STAND. COM. REP. NO. 1192
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     Your Committee finds that the ADC was empowered by the
Legislature to optimize the State's agricultural assets for the
benefit of the agricultural industry and the economy as a whole.

     Your Committee further finds that the ADC now has an
opportunity to meet that objective, but only if the board of the
ADC is retained as a body separate from the Board of Agriculture,
with specific authorization to undertake projects in support of
agricultural redevelopment.  Your Committee has amended this
measure to:

     (1)  Include a purpose section;

     (2)  Reinstate appointment of the ADC board by the Governor;

     (3)  Reinstate Board of Agriculture approval for marketing
          activities by the ADC;

     (4)  Change the expending agency from the DOA to the ADC;

     (5)  Authorize the ADC to plan, design, and construct an
          agricultural subdivision in Hamakua, with an annual
          progress report to the Legislature;

     (6)  Appropriate funds to the ADC for the Hamakua

     (7)  Require the ADC to submit an annual report to the
          Legislature on its overall activities; and

     (8)  Make technical, nonsubstantive amendments.

     In amending this measure, your Committee has incorporated
portions of S.B. No. 576, S.D. 1, heard previously in this

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 1280, H.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 1280, H.D. 2, S.D. 1, and be referred to the Committee on
Ways and Means.

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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic

                                   LORRAINE R. INOUYE, Chair

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