STAND. COM. REP. NO. 2251

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 3199
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred S.B. No. 3199 entitled: 

     "A BILL FOR AN ACT RELATING TO PLANT AND NON-DOMESTIC ANIMAL
     QUARANTINE,"

begs leave to report as follows:

     The purpose of this measure is to provide for the regulation
of microbial products and unlisted microorganisms by the
Department of Agriculture under the plant and non-domestic animal
quarantine law.

     Testimony in favor of the intent of this measure was
submitted by the Department of Agriculture, the College of
Tropical Agriculture and Human Resources, University of Hawaii at
Manoa, and Hawaii Agriculture Research Center.

     Your Committee finds that there is an urgent need to update
and streamline the procedures for importation and regulation of
microbial products and microorganisms, as well as all organisms
used in research and development.  Your Committee has heard that
without additional flexibility in the law, biotechnology will not
succeed in Hawaii, despite its promise for great economic benefit
to the State.

     Your Committee understands that since the introduction of
this measure, the department has been working with industry and
university representatives to present an alternative means of
addressing the issue, and with their concurrence, your Committee

 
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has amended this measure by deleting and replacing its contents
with provisions as follows:

     (1)  Creates six new sections for microorganisms, plants,
          and animals, to clarify the differing requirements
          appropriate to each category;

     (2)  Authorizes the department to determine in an
          expeditious manner whether an unlisted microorganism
          may be imported;

     (3)  Authorizes the department to establish a list of select
          human pathogens that do not require an import permit,
          but do require labeling and inspection;

     (4)  Authorizes the department to issue an emergency permit
          through an expedited review process;

     (5)  Authorizes the department to require registration of
          certain microbial products;

     (6)  Establishes a permit revolving fund;

     (7)  Adds definitions of "microbial product" and "unlisted
          microorganism";

     (8)  Deletes the requirement for a list of prohibited
          microorganisms and plants in current law;

     (9)  Authorizes the department to assess fees for
          registration; and 

     (10) Extends the time for publication of an interim rule
          from ten to twelve days to accommodate advance notice
          requirements.

     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. 3199, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 3199,
S.D. 1, and be referred to the Committee on Ways and Means.


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



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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