Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 374
                                     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. 374 entitled: 


begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Provide funds for the department of agriculture to
          conduct research to determine appropriate sites for
          distribution centers in three strategically located
          mainland states;

     (2)  Rent appropriate warehouse facilities at each of the
          sites, including a cooling facility for perishable

     (3)  To make these sites available for use by agricultural
          producers from Hawaii for the promotion and sale of
          their agricultural products.

     Testimony in support of the measure was received from HARC,
the Maui County Farm Bureau, the Hilo County Farm Bureau, the
Hawaii Food Industry Association and the State Democratic Party
of Hawaii.  The Department of Agriculture supports the bill
provided the bill's  passage does not replace or adversely impact
priorities indicated in its Executive Biennium Budget.

                                 STAND. COM. REP. NO. 319
                                 Page 2

     Your committee finds that there is a need for a well-
established network of facilities for the distribution of Hawaii
agricultural and processed food products to make them more
competitive in the Mainland market. Hawaii farmers find it
difficult to promote and market their products due to the high
cost of transportation and for each commodity to undertake such
an effort independently would be cost-prohibitive.  A coordinated
effort between a large group of producers and manufacturers, as
well as the State, is very essential to the success of this

     Your committee has amended this bill by inserting
appropriation of $100,00 for fiscal year 1999-2000 to:

     (1)  establish appropriate site(s) for
          distribution/consolidation centers in Hawaii and
          mainland states;

     (2)  rent appropriate warehouse facility at each of the
          site, including a cooling facility for Hawaii
          agricultural products;

     (3)  make these sites available for use by agricultural
          producers and manufacturers from Hawaii for the
          promotion and sale of their products.

     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.
374, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 374, 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