STAND. COM. REP. NO. 266

Honolulu, Hawaii

RE:    S.B. No. 659

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Water, Land, Agriculture, and Hawaiian Affairs, to which was referred S.B. No. 659 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose of this measure is to support efforts to achieve a more efficient means of consolidating, processing, distributing, and marketing of agricultural products from the neighbor islands by establishing a terminal market pilot program on the island of Hawaii.

     Specifically, this measure:

     (1)  Appropriates $200,000 for the planning of a terminal market pilot program on the island of Hawaii;

     (2)  Appropriates $50,000 for the Department of Agriculture to hire a consultant to assist in the planning of terminal markets;

     (3)  Requires the consultant to coordinate with the Department of Agriculture to form a committee relating to terminal markets; and

     (4)  Authorizes $3,000,000 in general obligation bonds to finance the construction of and equipment for a terminal market and vacuum cooling plant for the island of Hawaii.

     Testimony in support of this measure was submitted by the Department of Agriculture and the Hawaii Farm Bureau Federation.

     Currently, Hawaii farmers are hindered from selling their agricultural products due to their inability to consolidate, process, and ship marketable quantities of food.  Inter-island shipping costs can be economically unfeasible for farmers and can inhibit them from expanding their agricultural production.  Your Committee finds that establishing a terminal market pilot program will aid local agricultural producers, regardless of the size of their agricultural operations, to meet the fresh food requirements of the military sector, the public, and for export to the mainland.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Water, Land, Agriculture, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 659, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 659, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water, Land, Agriculture, and Hawaiian Affairs,

____________________________

RUSSELL S. KOKUBUN, Chair