STAND. COM. REP. NO. 3300

Honolulu, Hawaii

RE:    H.B. No. 2009

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 2009 entitled:

"A BILL FOR AN ACT RELATING TO THE MILK CONTROL,"

begs leave to report as follows:

     The purpose and intent of this measure is to establish a minimum reserve requirement in the milk control special fund that provides funding to cover all the costs of administering the State's Milk Control Act and to require that audits be included as a contingency cost covered by the minimum reserve.

     Your Committee received written comments in support of this measure from the Department of Agriculture, the Hawaii Farm Bureau Federation, and Ulupono Initiative.

     Your Committee finds that the milk industry is critical to food security and self-sustainability in Hawaii.  Proper oversight and adequate funding of the milk control special fund will effectively allow administration of the Milk Control Act as well as cover contingency costs, such as audits.  Your Committee believes that this measure will support the local dairy industry and ensure that milk remains a source of vital nutrition to Hawaii residents.

     Your Committee has amended this measure by:

(1)  Changing the minimum reserve from $300,000 to an unspecified amount;

(2)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(3)  Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2009, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2009, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair