CONFERENCE COMMITTEE REP. NO. 88-16

Honolulu, Hawaii

                 , 2016

RE:    S.B. No. 2659

       S.D. 2

       H.D. 1

       C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2659, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INDUSTRIAL HEMP,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to establish an industrial hemp pilot program within the Department of Agriculture to allow the cultivation of industrial hemp and distribution of its seed in the State through limited agricultural or academic research activities, and appropriate funds for one full-time equivalent position to effectuate the pilot program.

     Your Committee on Conference finds that industrial hemp is well suited to Hawaii's climate and soil and can grow to over ten feet in a short period of time with little water and no pesticides.  According to estimates by the Hemp Industries Association, retail sales of industrial hemp products grew to over $620,000,000 annually in 2014.  Industrial hemp has over 25,000 uses, including food, fiber, and fuel products, and has high potential to contribute to the future viability of the State's agricultural industry.

     Your Committee on Conference has amended this measure by:

     (1)  Inserting an appropriation amount of $425,000 for the Department of Agriculture to effectuate the industrial hemp pilot program, to be allocated as follows:

          (A)  $100,000 for a Program Coordinator position;

          (B)  $75,000 for an Inspector position; and

          (C)  $250,000 for the administrative costs of the program;

     (2)  Changing the effective date to July 1, 2016, and the sunset date to June 30, 2021; and

     (3)  Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2659, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2659, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ CLIFT TSUJI, Co-Chair	____________________________ MIKE GABBARD, Chair
____________________________ KARL RHOADS, Co-Chair	____________________________ GILBERT S.C. KEITH-AGARAN, Co-Chair
____________________________ RICHARD H.K. ONISHI, Co-Chair	____________________________ J. KALANI ENGLISH, Co-Chair