STAND. COM. REP. NO. 1028_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 949
                                     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 Finance, to which was referred H.B. No.
949, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to encourage the development of
agricultural parks/developments by appropriating funds and
directing the Agribusiness Development Corporation to establish

     The Agribusiness Development Corporation (ADC), the Hawaii
Farm Bureau Federation, and the Big Island Farm Bureau testified
in support of the bill.  Life of the Land commented on the

     The Big Island Farm Bureau has initiated a deep soil
agricultural subdivision project, hopeful that the land will be
developed and subdivided by ADC and made available to new and
existing farmers.  The subdividing of large parcels into smaller
economical size units of ten and fifteen acres would enable more
farmers to use the land at affordable prices.  ADC is the
appropriate agency to develop the agricultural subdivision
because it is authorized to float bonds, offer subleases, and
manage such enterprises.

     The parcels designated for the proposed Hamakua agricultural
subdivision are identified as TMKs:  4-5-01-7 and 4-5-01-13,
totalling about 160 acres.  These parcels are two of larger

                                 STAND. COM. REP. NO. 1028_______
                                 Page 2

remaining State-owned parcels still available for diversified
agricultural use in Hamakua.  More significantly, these parcels
are located below the Lower Hamakua ditch with plantation-
installed irrigation mains already in place, making the land
ideally suited for a variety of diversified agricultural uses.
One parcel in particular was used by the plantation for years as
a dumping ground for the mud and excess baggass generated by the

     Your Committee strongly believes that specific funding
should be appropriated this year for the planning, design, and
construction of a deep soil agricultural subdivision in the
Hamakua district of the Big Island.  This subdivision will serve
as a pilot project for future developments by ADC.

     Your Committee has amended the bill by:

     (1)  Authorizing ADC to develop agricultural subdivisions
          rather than agricultural parks/developments;

     (2)  Amending section 163D-17, Hawaii Revised Statutes, to
          reflect ADC's authority to develop agricultural
          subdivisions; and

     (3)  Making technical, nonsubstantive revisions to correct
          drafting errors and for style and clarity.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
949, H.D. 1, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as H.B. No. 949, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,

                                   DWIGHT Y. TAKAMINE, Chair