STAND. COM. REP. NO.  332-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2657

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committees on Agriculture and Economic Development & Business, to which was referred H.B. No. 2657 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

beg leave to report as follows:

The purpose of this measure is to financially assist farmers and ranchers on Molokai with the costs of complying with federal and state food safety laws by, among other things:

(1)  Expanding the Maui County Revolving Loan Program to include the provision of financial assistance to qualified applicants for costs incurred in complying with the FDA Food Safety Modernization Act and state food safety laws; and

(2)  Appropriating funds for the Maui Office of Economic Development to review and approve cost reimbursement applications.

The Department of Agriculture, Hawaii Farm Bureau Molokai County, Hawaii Farm Bureau, and two concerned individuals supported this measure.  The Department of the Attorney General submitted comments on this measure.

     Your Committees have amended this measure by:

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

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

     Your Committees note that at this juncture of the legislative process, the appropriation for the Maui Office of Economic Development to review and approve cost reimbursement applications is unspecified and further information is necessary to determine the recommended amount.

     Your Committees further note that according to the testimony of the Department of the Attorney General, the language in section 3(b) of Act 387, Session Laws of Hawaii 1988, in this measure provides that disbursements under the Maui County Revolving Loan Program are reimbursements, rather than loans.  Further, section 3(b)(4) and (5) of Act 387, which would be repealed by this measure, provided loan repayment terms and provisions.  Should the Committee on Finance deliberate on this measure further, your Committees on Agriculture and Economic Development & Business respectfully request that it examine this inconsistency noted by the Department of the Attorney General and, if necessary, appropriately resolve the inconsistency.

     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. 2657, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2657, H.D. 1, and be referred to your Committee on Finance.

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

____________________________ DEREK S.K. KAWAKAMI, Chair

____________________________ CLIFT TSUJI, Chair