STAND. COM. REP. NO.  307-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 1999

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred H.B. No. 1999 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose of this measure is to address the high cost of feed and the lack of local feed mills in Hawaii by:

(1)  Establishing and funding a grant program for qualified feed developers to cover a percentage of their feed development costs up to a specified cap;

(2)  Appropriating funds to reimburse qualified producers of certain products for their cost of feed;

(3)  Appropriating funds to reimburse qualified feed developers for the costs of development of feed for sale to qualified producers; and

(4)  Appropriating funds for the Department of Agriculture to conduct a survey to identify, assess, and validate locally sourced feed ingredients that are available to qualified feed developers.

The Department of Agriculture, American Feed Industry Association, Land Use Research Foundation of Hawaii, Ulupono Initiative, Hawaii Cattlemen's Council, Hawaii Farm Bureau, and a concerned individual supported this measure.

     Your Committee has amended this measure by:

     (1)  Clarifying that the required documentation pertains to feeds costs, rather than feed development costs;

     (2)  Clarifying that documentation shall be filed for feed purchased within the immediately preceding year of the filing and shall be effective for fees costs incurred after July 1, 2016;

     (3)  Requiring annual financial statements to be filed within 90 days following the close of the business' fiscal year after June 30, 2016, for final reconciliation;

     (4)  Changing its effective date to January 20, 2050, to encourage further discussion; and

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

     Your Committee notes that at this juncture in the legislative process, the amounts of the appropriations for the reimbursements to qualified producers and qualified feed developers and the survey to identify locally sourced feed ingredients are unspecified and further discussion is necessary to determine recommended amounts.

     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. 1999, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1999, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

CLIFT TSUJI, Chair