STAND. COM. REP. NO.  538

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 1421

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred H.B. No. 1421 entitled:

"A BILL FOR AN ACT RELATING TO ORGANIC AGRICULTURE,"

begs leave to report as follows:

The purpose of this measure is to establish a Combined Agricultural Mobilization Program, under the Department of Agriculture by, among other things:

     (1)  Providing affordable long-term leases to farmers for establishing small, organic farms;

     (2)  Authorizing the Public Utilities Commission to establish preferential energy rates for participants in the Program;

     (3)  Requiring the High Technology Development Corporation to assist participants with technological innovations related to crop development; and

     (4)  Appropriating funds to the Program.

A few concerned individuals testified in support of this measure.  The Department of Agriculture and Public Utilities Commission opposed this measure.  The High Technology Development Corporation and one concerned individual submitted comments.

     Your Committee has amended this measure by:

     (1)  Renaming the Program to be the Organic Agricultural Mobilization Program;

     (2)  Removing the provision that authorizes the Public Utilities Commission to establish preferential rates for organic farmers participating in the Program;

     (3)  Making the purpose statement clear and concise;

     (4)  Removing the fifty-five year lease term limitation for leases provided under the Program by the Department of Agriculture;

     (5)  Removing a requirement that all lands identified as being suitable to be leased by the Department of Agriculture for the establishment of organic farms have a soil classification of A or B under the Land Study Bureau's detailed land classification;

     (6)  Removing a provision that allows organic farmers participating in the Program to construct certain improvements and to retain the value of those improvements and investments made on the land;

     (7)  Removing provisions relating to Program participants contracting with the State for the sale of produce to State agencies;

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

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

     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. 1421, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1421, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

JESSICA WOOLEY, Chair