STAND. COM. REP. NO. 2238

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2164
                                        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. 2164 entitled: 

     "A BILL FOR AN ACT RELATING TO THE ORGANIC AGRICULTURE
     INDUSTRY,"

begs leave to report as follows:

     The purpose of this measure is to require the Department of
Agriculture to compile statistics on certified organic
agriculture.

     Testimony in favor of this measure was submitted by the Big
Island Farm Bureau, Hamakua County Farm Bureau, Hawaii Organic
Farmers Association, and Big Island Sustainable Communities
Association.  The Department of Agriculture submitted testimony
in opposition.

     Your Committee finds that statistics play a key role in the
ability to monitor the current status and potential growth of the
agricultural sector.  In the case of organic agriculture, the
production and processing techniques are distinct and separate
from other forms of agriculture, and require a separate set of
statistics.

     Your Committee has heard the concerns of the Department of
Agriculture regarding the importance of uniform standards as a
base for defining organic agriculture, if the resulting
statistics and data gathered are to be useful for both the
industry and consumers.  As the result of these and other

 
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concerns, and after further discussion, the department has
proposed an alternative means to provide assistance to the
organic agriculture industry in Hawaii.

     Your Committee has amended this measure accordingly, by
deleting its contents, and inserting language to establish a new
part on organically produced agricultural products, which:

     (1)  Sets out definitions;

     (2)  Authorizes the department to adopt rules subject to
          chapter 91, Hawaii Revised Statutes;

     (3)  Establishes criteria for accreditation of certifying
          agents;

     (4)  Specifies labeling exceptions; and

     (5)  Establishes administrative penalties of not more than
          $1,000 for each separate offense under the new part.

     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. 2164, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2164,
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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