STAND. COM. REP. NO. 826

Honolulu, Hawaii

RE:    H.B. No. 865

       H.D. 2

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred H.B. No. 865, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO INSPECTION FEES,"

begs leave to report as follows:

     The purpose and intent of this measure is to increase from 50 cents to 75 cents for every one thousand pounds of freight the fee assessed and collected for the inspection, quarantine, and eradication of invasive species contained in any freight brought into the State.

     Your Committee received testimony in support of this measure from the Department of Agriculture; Department of Land and Natural Resources; Hawaii Farm Bureau Federation; Hawai‘i Forest Industry Association; Kona Coffee Farmers Association; Conservation Council for Hawai‘i; Coordinating Group on Alien Pest Species; The Nature Conservancy; Poamoho Organic Produce; Alexander & Baldwin, Inc.; Hawaii Crop Improvement Association; Hawai‘i Chapter of the Sierra Club; Aloha Arborist Association; and five individuals.  Your Committee received testimony in opposition to this measure from one individual.  Your Committee received comments on this measure from the Tax Foundation of Hawaii.

     Your Committee finds that the State's ability to adequately inspect incoming cargo is critical to protecting Hawaii's residents, resources, air passengers, and airport facilities from invasive species.  Currently, there is a lack of adequate General Fund monies to cover the necessary inspection requirements at Hawaii's air and sea ports.  This measure provides an alternative source of funding to adequately support agricultural inspection in the State.

     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 Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 865, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 865, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

CLARENCE K. NISHIHARA, Chair