STAND. COM. REP. NO. 498-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 1534

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committees on Agriculture and Economic Development & Business, to which was referred H.B. No. 1534 entitled:

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

beg leave to report as follows:

The purpose of this measure is to nurture agricultural innovation to develop a more significant food-focused agricultural industry by establishing the Agriculture Innovation Grant Program (Program) to fund start-up agricultural businesses developing innovations for:

     (1)  Feed production;

     (2)  Food waste recycling;

     (3)  On-farm energy efficiency; and

     (4)  Soil health and conservation.

The Hawaii Cattlemen's Council, Ulupono Initiative, Maui Cattle Company, Kuahiwi Ranch, Energy Excelerator, Hawaii Farmers Union United, Kona Chapter-Hawaii Farmers Union United, Big Island Dairy LLC, and a number of concerned individuals supported this bill.  The High Technology Development Corporation and Hawaii Farm Bureau Federation supported the intent of this measure.  The Department of Budget and Finance commented on this bill.   

     Your Committees have amended this measure by:

     (1)  Adding start-up businesses that develop innovations relating to food production, food processing, and marketing of food products as agricultural businesses that qualify as applicants under the Program; and

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

     Your Committees find that the new Program may benefit from administrative and implementation input from the Agribusiness Incubation Program within the University of Hawaii College of Tropical Agriculture and Human Resources and encourages such collaboration.  Further, your Committees encourage a review and analysis of the funding mechanism of the Agriculture Innovation Grant Fund, with the goal of making the Fund self-sufficient.

     Further, should the Committee on Finance deliberate on this measure, your Committees respectfully request that it appropriate $4,000,000 for the Program.

     As affirmed by the records of votes of the members of your Committees on Agriculture and Economic Development & Business that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1534, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1534, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Economic Development & Business,

____________________________ CLIFT TSUJI, Chair

____________________________ JESSICA WOOLEY, Chair