STAND. COM. REP. NO.  561-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 2294

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2294, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose of this bill is to provide a dedicated source of funding for the inspection, quarantine, biosecurity, and eradication programs of the Department of Agriculture (DOA) under Chapter 150A, Hawaii Revised Statutes (Chapter 150A), by:

     (1)  Expanding the use of moneys in the Pest Inspection, Quarantine, and Eradication Fund (Special Fund) to include biosecurity services and any other services provided under Chapter 150A;

     (2)  Authorizing all fees and fines imposed under Chapter 150A to be deposited into the Special Fund;

     (3)  Repealing the Permit Revolving Fund and Microorganism Import Certification Revolving Fund and transferring moneys and obligations of these funds to the Special Fund;

     (4)  Providing that the fee for inspection, quarantine, and

          eradication of invasive species in freight does not apply to aggregate bulk freight, cement bulk freight, coal bulk freight, or liquid bulk freight;

     (5)  Establishing fines for failure to pay or remit the fee for inspection, quarantine, and eradication of invasive species in freight; and

     (6)  Requiring the DOA to impose or increase fees under Chapter 150A by rule to levels sufficient to pay the costs of programs under the chapter, and providing statutory fee rates in the event that DOA fails to adopt rules.

     Alexander and Baldwin, Inc.; Monsanto Hawaii; and AES Hawaii, Inc., testified in support of this bill.  The Department of Agriculture, The Nature Conservancy of Hawaii, Hawaii Farm Bureau Federation, Hawaii Crop Improvement Association, Coordinating Group on Alien Pest Species, Hawaiian Cement, and Grace Pacific Corporation provided comments.

     Your Committee has amended this bill by:

     (1)  Deleting the amount appropriated from the Special Fund;

     (2)  Changing the effective date to July 1, 2020, to encourage further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2294, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2294, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair