STAND. COM. REP. NO. 1499

Honolulu, Hawaii

RE:    S.R. No. 63

       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.R. No. 63 entitled:

"SENATE RESOLUTION REQUESTING THE DEPARTMENT OF AGRICULTURE TO ADOPT ADMINISTRATIVE RULES TO ESTABLISH UNIFORM INSPECTION, CERTIFICATION, AND AUDIT REQUIREMENTS FOR ALL COFFEE GROWN IN HAWAII,"

begs leave to report as follows:

     The purpose of this measure is to protect and promote the high quality of Hawaii grown coffee by requesting the Department of Agriculture to adopt administrative rules to establish uniform inspection, certification, and audit requirements for all coffee grown in Hawaii.

     Testimony in support of this measure was submitted by the Hawaii Coffee Association; the Hawaii Teamsters and Allied Workers, Local 996; the Maui Oma Coffee Roasting Company; Owl's Nest Farm; Dragon's Lair Estate; the Hawaii Coffee Company; Tropical Taste; Pele Plantations; Island Sun Coffee; Maui Wowi Hawaiian; Royale Island Coffee Hawaii; and twenty-three individuals.  Testimony in opposition to this measure was submitted by the Department of Agriculture; one Council Member, Hawai‘i County Council; the Kona Coffee Farmers Association; Daily Fix Coffee; Pau Hana Estate; and eight individuals.

     Your Committee finds that the subject matter of this measure can be more appropriately addressed in S.C.R. No. 102, as amended, and S.R. No. 62, as amended, which deal with Hawaii grown coffee quality standards.  Accordingly, your Committee has amended this measure and its title by deleting its contents and replacing it with language that requests the Department of Agriculture to convene a working group of stakeholders in the agricultural industry in Hawaii to provide an economic analysis of the incentive measures approved for important agricultural lands.

     Act 183, Session Laws of Hawaii 2005, established a process for identifying important agricultural lands as mandated under article XI, section 3 of the Hawaii State Constitution.  Act 183 recognized the importance of providing incentives that are designed to promote agricultural viability in Hawaii and to result in the long-term retention of important agricultural lands.  The Land Use Commission may not start the designation process for important agricultural lands until an adequate package of incentives and protection programs have been enacted.

     Accordingly, this measure, as amended, requests that the Department of Agriculture, in consultation with the Department of Business, Economic Development, and Tourism and the Department of Taxation, reconvene a working group of stakeholders in the agricultural industry in Hawaii to:

     (1)  Perform an economic analysis of the incentive measures passed by the Legislature since the enactment of Act 183, Session Laws of Hawaii 2005;

     (2)  Recommend a minimum criteria for determining the "enactment of legislation establishing incentives and protection" pursuant to Act 183; and

     (3)  Continue to discuss and develop additional incentive measures and programs for important agricultural lands to meet the minimum criteria for the enactment of legislation to establish incentives and protections.

The Department of Agriculture is further requested to submit a written report of the working group's findings and recommendations to the Legislature prior to the convening of the 2008 Regular Session.

     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 concurs with the intent and purpose of S.R. No. 63, as amended herein, and recommends its adoption in the form attached hereto as S.R. No. 63, S.D. 1.

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

____________________________

RUSSELL S. KOKUBUN, Chair