STAND. COM. REP. NO. 2908

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2404
                                        H.D. 1
                                        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 H.B. No. 2404, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO AQUACULTURE,"

begs leave to report as follows:

     The purpose of this measure is to allow the Department of
Agriculture (DOA) to establish and assess fees for aquatic animal
and plant health diagnostic services, and to establish an
aquaculture development special fund.

     Your Committee received testimony in support of this measure
from the Board of Agriculture, Hawaii Aquaculture Association,
Oceanic Institute, and Mangrove Tropicals.

     This measure also allows fees for items or expert services
purchased from the DOA relating to aquaculture planning, disease
management, and seafood products marketing.

     The fees collected by the DOA under this measure will be
deposited into the aquaculture development special fund.
Expenditures from the fund will applied towards aquatic disease
management programs, and research and development programs and
activities for the expansion of the aquaculture industry.

     Your Committee finds that aquaculture is maturing as an
alternate economic industry for Hawaii.  This means that greater
reliance will be placed on scientific analysis of diseases or

 
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other problems that develop in the industry.  Research and
development will be of ever-increasing importance as Hawaii
competes with other world sources of aquaculture products.
Therefore, the creation of the aquaculture development special
fund will be invaluable to help promote and improve the State's
aquaculture industry.  By allowing the DOA to assess fees for
diagnostic services related to aquaculture, the fund can be
increased over time, with less reliance on legislative
appropriations.

     Your Committee has amended this measure by making technical,
nonsubstantive changes to improve accuracy and understanding of
the text.

     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. 2404, H.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as
H.B. No. 2404, H.D. 1, S.D. 1, and be referred to the Committee
on Ways and Means.

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



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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