Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 488

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Economic Development, to which was
referred S.B. No. 488 entitled: 


begs leave to report as follows:
     The purpose of this measure is to appropriate $200,000 to
the Department of Agriculture to enable the Hawaii Organic
Farmers Association to develop local and overseas markets for
Hawaii grown organic produce.

     Your Committee received testimony in support of this measure
from the County of Maui, the Hawaii Organic Farmers Association,
Papalele Farm, and two individuals.  The Department of
Agriculture submitted testimony in support of the intent of the
measure, with comments.

     Your Committee finds that the estimated value in gross sales
of the State's organic farming industry in 1996 was $7,000,000,
and at the national level, organic farming has grown by more than
twenty percent a year since 1990.

     Your Committee further finds that organic farming represents
an opportunity to expand the growing mix of diversified
agricultural products, both for local use and for export.  Your
Committee is in support of the efforts of Hawaii's organic
farmers and believes this measure will assist the growers in
finding new markets for their products.

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                                   STAND. COM. REP. NO. 100
                                   Page 2

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 488 and recommends that it pass Second Reading and be
referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic

                                   LORRAINE R. INOUYE, Chair

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