STAND. COM. REP. NO. 988

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 562
                                        S.D. 1




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

Sir:

     Your Committee on Economic Development, to which was
referred H.B. No. 562 entitled: 

     "A BILL FOR AN ACT RELATING TO MEASUREMENT STANDARDS,"

begs leave to report as follows:
     
     The purpose of this measure is to add three new terms that
may be used on the label of raw or processed macadamia nuts that
contain only Hawaii grown nuts, to prohibit the use of these
terms on a label for any macadamia nut products not grown in
Hawaii, and to delete a redundant subsection.

     Your Committee received testimony in support of this measure
from the Department of Agriculture, the Hawaii Macadamia Nut
Association, Mauna Loa Macadamia Nut Corporation, Hamakua
Macadamia Nut Company, MacFarms of Hawaii, and the ILWU Local
142.

     Your Committee finds that it is vital for Hawaii's high
quality agricultural commodities to be able to distinguish their
products from those produced in other areas.  This measure would
give the macadamia nut industry additional flexibility in
labeling and protecting Hawaii grown macadamia nut products.

     Your Committee has amended this measure to require that the
label for all macadamia nut products grown elsewhere include the
country or state of origin.


 
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                                   STAND. COM. REP. NO. 988
                                   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 H.B. No. 562, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 562,
S.D. 1, and be referred to the Committee on Commerce and Consumer
Protection.

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



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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