STAND. COM. REP. NO.  368-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 2293

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred H.B. No. 2293 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF AGRICULTURE,"

begs leave to report as follows:

     The purpose of this bill is to create an Agriculture Staffing Special Fund (ASSF) to pay the salary and benefits for personnel that were previously paid by the general fund.  Specifically, the bill requires that: 

     (1)  A portion of the Agricultural Revolving Loan Fund (ARLF), and fees and interest generated by agricultural loans, be deposited into the ASSF; and

     (2)  The Department of Agriculture (DOA) submit a financial report of the ASSF to the Legislature no later than 20 days prior to the convening of the 2012 Regular Session.

     The Hawaii Government Employees' Association, Hawaii Farm Bureau Federation, Hawaii Crop Improvement Association, Monsanto Hawaii, and a concerned individual testified in support of this bill.  The DOA opposed this measure.  The Department of Budget and Finance (DBF) provided comments.

     Your Committee notes the DBF's concern that it is not clear whether there is a clear nexus between the benefits sought in the ASSF and charges made upon the users or beneficiaries of the ALRF program.  Therefore the special fund established by this bill may not meet the criteria for establishing special funds pursuant to section 37-52.3, Hawaii Revised Statutes.

     Your Committee has amended this bill by:

     (1)  Changing the effective date to January 20, 2020, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for purposes of clarity, consistency, and style.

     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 H.B. No. 2293, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2293, 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