STAND. COM. REP. NO.  1353

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 1307

      S.D. 3

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred S.B. No. 1307, S.D. 3, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose of this bill is to stabilize the livestock industry in Hawaii and ensure its continued viability by:

     (1)  Establishing the Livestock Revitalization Program (Program) to provide grants to reimburse qualified producers of milk, poultry products, pork, and beef for up to 50 percent of feed expenses; and

     (2)  Appropriating an unspecified amount of funds for the Program.

     The Department of Agriculture (DOA), University of Hawaii, Hawaii Farm Bureau Federation, Island Dairy, Inc., Hawaii Pork Industry Association, Hawaii Egg Producers Association, Pacific Dairy, Hawaii Teamsters Local 996, Ulehawa Farm, Inc., and several concerned individuals supported this bill.

     Your Committee has amended this measure by:

     (1)  Adding qualified producers of sheep and goat products to the Program; 

     (2)  Inserting an appropriation of $6,300,000, for each of fiscal year 2007-2008 and fiscal year 2008-2009 for the Program;

     (3)  Specifying that funds appropriated lapse on December 31, 2009;

     (4)  Revising the herd requirements for a qualified pork producer by raising the minimum required herd size for sows from ten to 50, and deleting the herd requirement of not less than 150 pigs;

     (5)  For a qualified producer of beef, specifying a minimum required herd size of not less than 450 head of cattle;

     (6)  Deleting the existing provisions relating to the determination of the amount of grant awards and the maximum reimbursement amounts and, instead, establishing specific maximum reimbursement amounts for qualified producers based on the category of livestock and limited by the annual net profit of each qualified producer;

     (7)  Deleting the requirement that DOA adopt rules pursuant to Chapter 91, Hawaii Revised Statutes (HRS), and instead, requiring DOA to establish procedures exempt from Chapter 91, HRS, to effectuate the purposes of the Program; and

     (8)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1307, S.D. 3, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1307, S.D. 3, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Agriculture,

____________________________

CLIFT TSUJI, Chair