STAND. COM. REP. NO. 1039

Honolulu, Hawaii

RE:    S.R. No. 46

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committees on Public Safety, Government Operations, and Military Affairs and Agriculture, to which was referred S.R. No. 46 entitled:

"SENATE RESOLUTION REQUESTING THE GOVERNOR TO ENSURE THAT THE CHIEF PROCUREMENT OFFICERS COMPLY WITH THE HAWAII PUBLIC PROCUREMENT CODE PREFERENCES FOR HAWAII PRODUCTS TO PROMOTE GROWTH OF THE STATE'S AGRICULTURE INDUSTRY AND THEREBY ASSURE FOOD SECURITY FOR HAWAII'S CITIZENS,"

beg leave to report as follows:

     The purpose and intent of this measure is to request the Governor to ensure that the Chief Procurement Officers comply with the Hawaii Public Procurement Code preferences for Hawaii products to promote growth of the State's agriculture industry and thereby assure food security for Hawaii's citizens.

     Your Committees received testimony in support of this measure from the Native Hawaiian Chamber of Commerce; Maui Cattle Company; Kaupo Ranch, Ltd.; and two individuals.

     Your Committees find that food security of the State of Hawaii is dependent upon a vibrant and expanding local agriculture industry.  Section 103D-1002, Hawaii Revised Statutes, provides a preference for public procurement of Hawaii products, including food raised or grown within the State.  The statutory preference for government purchases of Hawaii products provides Hawaii agricultural producers with a reliable market and creates economic incentives for the expansion of the Hawaii agriculture industry.

     Testimony on this measure indicates that, at least in regard to cattle, Hawaii ranchers are moving toward keeping their cattle at home for local consumption.  Marketing operations are transitioning from shipping calves to the mainland to providing beef for the local market.  This measure supports this movement by encouraging more sales of agricultural products to local consumers.

     The intent of your Committees is to provide opportunities for the expansion of the local agricultural market, which serves the dual purposes of supporting local agricultural small businesses and improving the food self-sufficiency of the State.

     As affirmed by the records of votes of the members of your Committees on Public Safety, Government Operations, and Military Affairs and Agriculture that are attached to this report, your Committees concur with the intent and purpose of S.R. No. 46 and recommend that it be referred to the Committee on Judiciary and Labor.

Respectfully submitted on behalf of the members of the Committees on Public Safety, Government Operations, and Military Affairs and Agriculture,

____________________________ CLARENCE K. NISHIHARA, Chair

____________________________ WILL ESPERO, Chair