STAND. COM. REP. NO. 1684

Honolulu, Hawaii

RE:    H.B. No. 1220

       H.D. 1

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 1220, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURAL MARKETING,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish the seal of quality special fund to support the costs associated with the seal of quality program; and

     (2)  Mandate that all revenues from the operation of the program and appropriations made by the Legislature shall be deposited in the fund.

     Your Committee received comments in support of the measure from:  the Department of Agriculture; the Maui Community College; the Hawaii Farm Bureau Federation; the Hawaii Agriculture Research Center; Green Point Nurseries, Inc.; the North Shore Cattle Company; the Manoa Honey Company; Paradise Flower Farms; Nalo Farms; Hamakua Springs; the Kamauoha Foundation; Kamiya Gold Inc.; the Kona Pacific Farmers Cooperative; and Alii Kula Lavender.

     Your Committee finds that the seal of quality program was established to promote and ensure a high standard of quality for fresh and processed agricultural products produced in Hawaii.  The seal of quality program assists participants by establishing an identifiable brand to promote local products and help them sell in the market place.

     Your Committee finds that the seal of quality special fund will provide a steady source of funding that enables the program to become self-reliant as the program moves forward, allowing for leverage of available federal funds and easier program management.  Moneys deposited into the special fund will be expended to support the seal of quality program, including future comprehensive marketing campaigns to raise consumer awareness and add value to local products.

     Your Committee has amended the bill by:

     (1)  Clarifying that the moneys to be deposited into the special fund include:

          (A)  Revenues from the seal of quality program;

          (B)  Fines collected under section 148-66, Hawaii Revised Statutes; and

          (C)  Appropriations made by the Legislature; and

     (2)  Clarifying that the special fund may also be expended for any other expense necessary for the administration of the program.

     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. 1220, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1220, H.D. 1, S.D. 2.

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

____________________________

ROSALYN H. BAKER, Chair