STAND. COM. REP. NO. 956

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1380
                                        H.D. 1
                                        S.D. 1




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

Sir:

     Your Committee on Economic Development, to which was
referred H.B. No. 1380, H.D. 1, entitled: 

     "A BILL FOR AN ACT MAKING AN INTERIM APPROPRIATION FOR THE
     DEPARTMENT OF AGRICULTURE, AGRICULTURAL RESOURCE MANAGEMENT
     DIVISION,"

begs leave to report as follows:
     
     The purpose of this measure is to provide an interim subsidy
to the irrigation system revolving fund to allow the irrigation
system to meet its operating costs and to allow the affected
parties to recover from the depressed economy.

     Your Committee received testimony in support of this measure
from the Department of Agriculture (DOA) and the Hawaii Farm
Bureau Federation.

     Your Committee finds that the DOA has met with strong
community opposition to proposed rate increases for agricultural
water.  In working with the affected parties to come to a
solution, the DOA is also working to reduce the costs of
operation, including personnel reductions, reducing carryover
balances, maximizing water delivery, and minimizing water loss in
the systems.

     Your Committee believes adequate and affordable irrigation
water is crucial to the success of farming operations throughout
the State.  Your Committee has amended this measure to correct

 
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                                   STAND. COM. REP. NO. 956
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the name of the revolving fund as the irrigation system revolving
fund. 

     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. 1380, H.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 1380, H.D. 1, S.D. 1, and be referred to the Committee on
Ways and Means.

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



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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