STAND. COM. REP. NO. 1424

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 374
                                        H.D. 2
                                        S.D. 1




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

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 374, H.D. 2, entitled:

     "A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose of this bill is to appropriate funds to develop
an infrastructure for the efficient delivery of Hawaii-based
agricultural products to the marketplace.

     Specifically, the funds are to:

     (1)  Create distribution and consolidation centers in Hawaii
          and mainland states;

     (2)  Rent warehouse space at each of these sites, including
          a cooling facility for Hawaii agricultural products;

     (3)  Make these sites available for use by agricultural
          producers and manufacturers from Hawaii for the
          promotion and sale of their products.

     Your Committee finds that in order for Hawaii to effectively
compete in the world economy, there must be an efficient
marketing system for the State's agricultural products.  In part

 
a                                                     HB374 SD1
 
 
 
                                   STAND. COM. REP. NO. 1424
                                   Page 2


this depends on having a good distribution system, with adequate
warehousing and the infrastructure to keep the agricultural
products fresh, clean, and attractive.  Expecting individual
farmers to find their own method for such distribution is both
time-consuming and inefficient.  This is an area in which
government assistance can be of help, and your Committee finds
that this measure will go a long way towards that goal.

     Your Committee has amended this bill by changing the $1
appropriation to $2.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B.
No. 374, H.D. 2, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 374, H.D.
2, S.D. 1.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     HB374 SD1