STAND. COM. REP. NO. 1949_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.C.R. No. 20
                                     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 Higher Education, to which was referred
H.C.R. No. 20 entitled: 


begs leave to report as follows:

     The purpose of this concurrent resolution is to request
specific state agencies and appropriate private sector firms to
develop strategies and coordinate initiatives to facilitate the
growth of Hawaii's biotechnology industry.

     Testimony in support of this measure was submitted by the
School of Ocean and Earth Science and Technology and the College
of Tropical Agriculture and Human Resources of the University of
Hawaii at Manoa, the Board of Agricultures, and the Department of
Business, Economic Development, and Tourism.

     Your Committee finds that biotechnology is an area of high
potential for development in Hawaii because of its natural assets
and scientific expertise.  For example, Hawaii offers year-round
growing cycles and is free from many diseases and viruses that
plague other tropical locations.  Hawaii's ocean resources offer
some of the cleanest water in the world, with near-shore access
to cold, nutrient-rich deep water.  World-class biotechnology
research and development is conducted at the University of Hawaii
and the Hawaii Agriculture Research Center.

                                 STAND. COM. REP. NO. 1949_______
                                 Page 2

     A number of businesses using biotechnology have been
established in Hawaii, starting a fledgling biotechnology
industry here.  However, for Hawaii to secure a significant niche
in the global development of biotechnology, a strategic plan must
be developed to coordinate resources.  This measure calls for the
development of such a plan.  

     During the hearing, the discussion raised the issue that
there are barriers to the development of a biotechnology industry
in Hawaii.  These barriers should be considered in the
development of the plan

     Your Committee has amended the measure by:

     (1)  Adding a statement that barriers to the development of
          the biotechnology industry in Hawaii exist;

     (2)  Adding the identification of these barriers and ways in
          which they can be overcome or eliminated in developing
          strategies to facilitate the growth of biotechnology;

     (2)  Making technical, nonsubstantive revisions for style
          and clarity.

     As affirmed by the record of votes of the members of your
Committee on Higher Education that is attached to this report,
your Committee concurs with the intent and purpose of H.C.R. No.
20, as amended herein, and recommends its adoption in the form
attached hereto as H.C.R. No. 20, H.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Higher Education,

                                   DAVID MORIHARA, Chair