Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 557
                                     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. 557 entitled: 


begs leave to report as follows:

     The purpose of this bill is to appropriate funds to conduct
research and promote tropical flowers.

     Testimony in support of this measure was received from HARC,
Hawaii Tropical Flower Council, Hawaii Florists' and Shippers'
Association, Hawaii Anthurium Industry Association, Big Island
Dendrobium Association, Hawaii Export Nursery Association, the
Big Island Farm Bureau, the Dean of the University of Hawaii
College of Tropical Agriculture and Human Resources, the Hawaii
Farm Bureau, Maui Floral, Inc. and Orchid Plantations, Inc.  The
Department of Agriculture supports this measure provided that the
bill's passage does not replace or adversely impact priorities in
its Executive Biennium Budget.

     Your Committee recognizes the value of investment of public
funds in agricultural research and development that will help
stimulate growth and create new products to sustain Hawaii's
agricultural commodities. The floriculture and nursery products
industry rank as the number one diversified agricultural
industry, but one that is threatened by low cost foreign
competition, lack of funds for national and international
marketing campaigns and high cost of transportation.  Your

                                 STAND. COM. REP. NO. 301
                                 Page 2

Committee is convinced that state funding is necessary in order
to continue and maintain Hawaii's competitive edge in the exotic
tropical flower industry.

     Under current economic and fiscal conditions, the State's
funding is limited, therefore, your Committee has amended this
bill by providing appropriation for one fiscal year 1999-2000.
Technical, nonsubstantive amendments were also made for purposes
of clarity 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.
557, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 557, 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