STAND. COM. REP. NO. 3522

Honolulu, Hawaii

RE:    H.B. No. 1999

       H.D. 1

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 1999, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose and intent of this measure is to reduce the costs of production for the State's livestock and aquaculture industries.

     Specifically, this measure:

     (1)  Establishes a grant program for qualified feed developers;

     (2)  Appropriates funds to the Department of Agriculture's Livestock Revitalization Program, to be allocated to reimburse qualified producers and qualified feed developers for certain feed-related costs; and

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

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

     Your Committee recognizes that the Hawaii livestock industry consistently identifies the cost of feed as the most expensive component of the industry's operational costs.  Furthermore, the State lacks local feed mills, thereby necessitating the importation of livestock feed.  Your Committee finds that the Department of Agriculture is committed to reducing production costs for the livestock and aquaculture industries by reducing the cost of feed, and has initiated a feed development process regarding local feed ingredients.  Your Committee also finds that this measure supports the Department of Agriculture's efforts to develop locally produced feed.  Your Committee believes that this measure will strengthen Hawaii's agricultural self-sufficiency.

     Your Committee requests the Department of Agriculture to provide the appropriation amounts necessary for the purposes of this measure, including the amounts of subsidies.

     Your Committee has amended this measure by:

     (1)  Correcting a cross-reference in section 7 of the measure to clarify that the funds appropriated to the Department of Agriculture's Livestock Revitalization Program that are not expended or encumbered by June 30, 2017, shall lapse as of that date; and

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

     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. 1999, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1999, H.D. 1, S.D. 2.

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

________________________________

JILL N. TOKUDA, Chair