STAND. COM. REP. NO. 2999

Honolulu, Hawaii

RE:    H.B. No. 2657

       H.D. 2

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Water, Land, and Agriculture, to which was referred H.B. No. 2657, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Amend the Molokai diversified agricultural revolving loan program established by Act 387, Session Laws of Hawaii 1988, to provide cost reimbursements to Molokai farmers and ranchers to reimburse costs of mandated food safety compliance audits and other related costs; and

     (2)  Appropriate funds to the Maui Office of Economic Development to review and approve applications for the loan program.

     Your Committee received testimony in support of this measure from the Department of Agriculture, Hawai‘i Farm Bureau, and two individuals.

     Your Committee finds that the United States Food and Drug Administration is currently rolling out rules for the Food Safety Modernization Act (FSMA).  Although final details are unclear, it is becoming evident that compliance will be costly.  Your Committee further finds that Molokai is in need of business development and growth in diversified agriculture and many farmers and ranchers on the island of Molokai will be unable to comply with the mandates of the FSMA without assistance.

     Your Committee has amended this measure by:

     (1)  Inserting an effective date of July 1, 2016; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2657, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2657, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water, Land, and Agriculture,

________________________________

MIKE GABBARD, Chair