STAND. COM. REP. NO.  894

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 501

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 501 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose of this measure is to assist farmers and ranchers in remaining competitive and self-sustaining by providing them with means to request and the Public Utilities Commission the authority to approve preferential rates not only for potable water, but for all public utility services for agricultural activities on lands within an agricultural district.

The Hawai‘i Farm Bureau Federation, Ulupono Initiative, Land Use Research Foundation of Hawaii, and an individual testified in support of this measure.  The Department of Agriculture testified in support of the intent of this measure.  Hawaiian Telcom testified in opposition to this measure.  The Public Utilities Commission provided comments on this measure.

     Your Committee has amended this measure by:

     (1)  Limiting the services for which the Public Utilities Commission may establish preferential rates for agricultural activities on lands within an agricultural district to water, electricity, and freight transport; and

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

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 501, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 501, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ANGUS L.K. McKELVEY, Chair