STAND. COM. REP. NO.  716-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 283

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 283 entitled:

"A BILL FOR AN ACT RELATING TO STATE FUNDS,"

begs leave to report as follows:

The purpose of this measure, as originally received by your Committee, is to assist the State in addressing its financial needs by:

     (1)  Temporarily suspending the authority of the Department of Agriculture to make, insure, guarantee, or participate in new loans under the agricultural and aquaculture loan programs;

     (2)  Requiring monies in, or received by, the Agricultural Loan Revolving Fund and Aquaculture Loan Revolving Fund to be transferred to the general fund; and

     (3)  Appropriating the amounts transferred into the general fund to the Department of Agriculture, and to the Hawaii Farm Bureau Federation as a grant-in-aid, to be used to support farming activities.

     Prior to the public hearing on this measure, your Committee circulated for review and comment, and received testimony on, a Proposed House Draft 1.  As amended, the purpose of the Proposed House Draft 1 of H.B. No. 283 is to address invasive species affecting Hawaii's coffee industry.  Specifically, the Proposed House Draft 1 of H.B. No. 283:

     (1)  Authorizes the Director of Finance to transfer excess monies in the Agricultural Loan Revolving Fund to the Pest Inspection, Quarantine, and Eradication Fund; and

     (2)  Appropriates monies from the Pest Inspection, Quarantine, and Eradication Fund for a program to control and eradicate the coffee borer beetle, including the destruction of feral coffee trees.

The Hawaii Farm Bureau Federation, Kona County Farm Bureau, Hawaii Coffee Growers Association, Maui Coffee Association, and numerous concerned individuals testified in support of this measure.  Two concerned individuals testified in opposition to this measure.  The Department of Agriculture provided comments.

     Your Committee notes that this measure is intended to be a one-time appropriation to deal with this emergency situation.

     After further consideration, your Committee has amended the original measure by adopting the language contained in the Proposed House Draft 1 of H.B. No. 283.

     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. 283, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 283, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

MARCUS R. OSHIRO, Chair