STAND. COM. REP. NO. 3129

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.R. No. 34
                                        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.R. No. 34 entitled:

     "SENATE RESOLUTION REQUESTING THE DEPARTMENT OF LAND AND
     NATURAL RESOURCES TO RESUME FRY/SEED PRODUCTION AT THE
     ANUENUE FISHERIES RESEARCH CENTER,"

begs leave to report as follows:

     The purpose of this measure is to request the Department of
Land and Natural Resources to resume fry/seed production at the
Anuenue Fisheries Research Center and to develop a plan for
private commercial fry/seed production.

     Testimony in favor of this measure was submitted by the
Department of Land and Natural Resources, Department of
Agriculture, Hawaii Aquaculture Association, and Cates
International, Inc.  Japan Airlines and one individual gave oral
testimony in support.

     Your Committee has heard that in recent months new markets
have been successfully developed for Hawaii grown fish in Mexico
and Japan, giving a positive boost to an industry that has
struggled for many years.  Your Committee is therefore very
concerned that this success has resulted in a shortage of seed
and fry stock to meet the demands of these markets.  After the
frustration of having a product and no markets, the industry now
finds it has more market opportunities than fish to keep these
markets supplied.


 
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     Your Committee believes this is an urgent problem that must
be resolved quickly, or the aquaculture industry will suffer
another setback in its efforts to become a viable part of
Hawaii's economy.

     Your Committee has amended this measure to add:

     (1)  Two new WHEREAS clauses stating that with the success
          last year of the Hawaii Offshore Aquaculture Research
          Project to raise moi, new foreign markets have opened
          up but Hawaii cannot support these markets without an
          increase of moi fry, and that there exists an urgent
          and immediate need for seed stock and fry production;

     (2)  The Department of Agriculture as an assisting agency
          and to the list of agencies receiving a copy of this
          measure for coordination purposes; and

     (3)  A reporting requirement.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee concurs with the intent and purpose of
S.R. No. 34, as amended herein, and recommends that it be
referred to the Committee on Ways and Means, in the form attached
hereto as S.R. No. 34, S.D. 1.

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



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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