STAND. COM. REP. NO. 2136

Honolulu, Hawaii

RE:    S.B. No. 2331

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committees on Agriculture and Transportation and International Affairs, to which was referred S.B. No. 2331 entitled:

"A BILL FOR AN ACT RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION,"

beg leave to report as follows:

     The purpose and intent of this measure is to appropriate funds to the Agribusiness Development Corporation for the operation of a boat or ferry to assist with interisland shipping of livestock and produce.

     Your Committees received testimony in support of this measure from the Hawaii Farm Bureau Federation, Leahi Foundation, and one individual.  Your Committees received testimony in opposition to this measure from the Environmental Caucus of the Democratic Party of Hawaii and three individuals.  Your Committees received comments on this measure from the Agribusiness Development Corporation and Young Brothers, Limited.

     Your Committees find that Hawaii faces unique transportation issues, particularly in the movement of agricultural commodities and livestock.  In 2008, a report entitled "The Demand for Interisland Shipping and the Impact of Shipping Costs on Hawaii Agricultural Production" (Report) was submitted to the Agribusiness Development Corporation which contained several recommendations for the Agribusiness Development Corporation to consider.

     As such, your Committees have amended this measure by:

     (1)  Removing the appropriation to the Agribusiness Development Corporation for the operation of a boat or ferry to assist with interisland shipping of livestock and produce;

     (2)  Adding language to authorize the Agribusiness Development Corporation to implement the recommendations contained in the Report and enter into public-private partnerships with private transportation carriers to implement the recommendations;

     (3)  Requiring the Agribusiness Development Corporation to report to the Legislature on the status of implementation no later than twenty days prior to the convening of the Regular Session of 2013;

     (4)  Changing the effective date of this measure from July 1, 2012, to upon approval; and

     (5)  Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Agriculture and Transportation and International Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2331, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2331, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Transportation and International Affairs,

____________________________ J. KALANI ENGLISH, Chair

____________________________ CLARENCE K. NISHIHARA, Chair