STAND. COM. REP. NO. 1068

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 368
                                        S.D. 1




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

Sir:

     Your Committees on Economic Development and Transportation
and Intergovernmental Affairs, to which was referred H.B. No. 368
entitled: 

     "A BILL FOR AN ACT RELATING TO THE STATE WATER CODE,"

beg leave to report as follows:
     
     The purpose of this measure is to provide the Board of
Agriculture with the same authority over water it purveys as the
county water agencies exercise over the water they purvey.

     Your Committees received testimony in support of this
measure from the Department of Agriculture, the Department of
Land and Natural Resources Commission on Water Resource
Management, and the Hawaii Farm Bureau Federation.

     Your Committees find that the Commission on Water Resource
Management has a duty to obtain the maximum beneficial use of
Hawaii waters for a broad range of purposes.  This measure will
assist the Commission by clarifying the role of the Board of
Agriculture.

     Your Committees have amended this measure to:

     (1)  Amend the purpose section to reflect the changes in
          statute;

     (2)  Add the word "supply" to "county water agencies" to
          clarify that the statute applies to county water supply

 
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                                   STAND. COM. REP. NO. 1068
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          agencies and not to other county water agencies, such
          as wastewater agencies, that do not supply water to
          consumers;

     (3)  Extend the same authority to the Agribusiness
          Development Corporation, under Chapter 163D, Hawaii
          Revised Statutes; and

     (4)  Make technical, nonsubstantive amendments for clarity.

     As affirmed by the records of votes of the members of your
Committees on Economic Development and Transportation and
Intergovernmental Affairs that are attached to this report, your
Committees are in accord with the intent and purpose of H.B.
No. 368, as amended herein, and recommend that it pass Second
Reading in the form attached hereto as H.B. No. 368, S.D. 1, and
be referred to the Committee on Water, Land, and Hawaiian
Affairs.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Economic
                                   Development and Transportation
                                   and Intergovernmental Affairs,



____________________________       ______________________________
CAL KAWAMOTO, Chair                LORRAINE R. INOUYE, Chair

 
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