Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1632
                                     H.D. 2

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. 1632, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill, as referred to your Committee, is
to develop new markets and expand existing market for Hawaii's
papaya industry.

     Your Committee finds that Hawaii's papaya production
declined from a high of 58.2 million pounds in 1993 to 35 million
pounds in 1998, a decrease of 39.7 percent in five years, due to
the papaya ringspot virus.  Your Committee further finds that
during these years of declining papaya production, the increase
demand for papaya by the U. S. mainland, Canadian and Japanese
markets was filled by foreign supplies of papaya.  Now the Hawaii
papaya industry is recovering with a resistant transgenic variety
and new acreage in production.  The Department of Agriculture
projects this year's papaya production to reach the level of 40
million pound.

     This bill appropriates $100,000 to develop new market and
expand existing markets for Hawaii's papaya industry.  This
measure further provides that no funds shall be expended unless
the Papaya Administrative Committee provides its one-third share
of $50,000 to promote the papaya industry.

                                 STAND. COM. REP. NO. 560
                                 Page 2

     Your Committee has amended this bill by adding the word
"million" in line 3 on page 1.

     Testimonies in support of this bill were received from the
Department of Agriculture and the Hawaii Papaya Industry

     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.
1632, H.D. 1, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 1632, H.D.
2, 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