CONFERENCE COMMITTEE REP. NO. 126

Honolulu, Hawaii

                 , 2013

RE:    S.B. No. 593

       S.D. 2

       H.D. 1

       C.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 593, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to:

     (1)  Expand the livestock feed subsidies program to include milking goats, goats raised for meat, sheep, lambs, fish, and crustaceans;

     (2)  Create a livestock feed developer subsidy; and

     (3)  Appropriate funds for the Livestock Revitalization Program.

     Your Committee on Conference finds that the cost of feed for livestock production in Hawaii constitutes up to seventy percent of total production costs, a significant amount more than production costs for mainland producers.  Many livestock farms have gone out of business, primarily due to the rising cost of feed and the farms' inability to compete with mainland suppliers.  To improve Hawaii's self-sufficiency, this measure provides financial assistance to livestock producers to maintain and stabilize the livestock industry in the State.

     Your Committee on Conference has amended this measure by:

     (1)  Removing language establishing grant subsidies for qualified feed developers in chapter 155D, Hawaii Revised Statutes, and deleting all reference to qualified feed developer grants, including a new definition for qualified feed developer and an appropriation for qualified feed developer grants;

     (2)  Inserting an appropriation amount of $1,500,000 to the Agricultural Development Division of the Department of Agriculture for livestock feed subsidies and administrative costs of the Livestock Revitalization Program and deleting the appropriation for fiscal year 2014-2015;

     (3)  Removing the $250,000 per year cap on grants to qualified producers;

     (4)  Inserting an effective date of July 1, 2013; and

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

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 593, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 593, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ JESSICA WOOLEY, Co-Chair	____________________________ CLARENCE K. NISHIHARA, Chair
____________________________ RICHARD H.K. ONISHI, Co-Chair	____________________________ RONALD D. KOUCHI, Co-Chair