STAND. COM. REP. NO. 3344

Honolulu, Hawaii

RE:    H.B. No. 748

       H.D. 2

       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. 748, H.D. 2, entitled:

"A BILL FOR AN ACT PROPOSING AN AMENDMENT TO THE HAWAII CONSTITUTION TO AUTHORIZE THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST AGRICULTURAL ENTERPRISES,"

begs leave to report as follows:

     The purpose and intent of this measure is to propose an amendment to the state constitution to expand the existing authorization to issue special purpose revenue bonds to assist agricultural enterprises serving important agricultural lands to include agricultural enterprises on all types of lands.

     Your Committee received written comments in support of this measure from Hawaii Green Growth, The Chamber of Commerce of Hawaii, Hawaii Farm Bureau Federation, Land Use Research Foundation of Hawaii, and Hawaii Farmers Union United.  Written comments on this measure were received from the Department of Budget and Finance, the Department of Agriculture, and Alexander and Baldwin, Inc.

     Your Committee finds that this measure seeks to aid Hawaii's agricultural community by supporting efforts to achieve food security and sustainability throughout the State.  The special purpose revenue bonds authorized by this measure will alleviate the burden on producers and processors by offsetting the costs of transportation and replacement of aged and obsolete infrastructure, as well as address regulatory compliance issues.  This measure will provide a lower cost financing mechanism to Hawaii's farmers and ranchers to carry out many critical agricultural projects that will help improve Hawaii's economy while enhancing the State's ability to be agriculturally self-sustaining.

     Your Committee has amended this measure by clarifying the constitutional amendment ballot question and preamble to more accurately reflect the constitutional amendment.

     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. 748, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 748, H.D. 2, S.D. 1.

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

____________________________

DAVID Y. IGE, Chair