STAND. COM. REP. NO. 2425

Honolulu, Hawaii

RE:    S.B. No. 2795

       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 S.B. No. 2795 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose and intent of this measure is to align the environmental response, energy, and food security tax with its original intent by reallocating a portion of the tax from the general fund to the Agribusiness Development Corporation to fund the acquisition of agricultural land.

     Your Committee received testimony in support of this measure from the Hawaii Cattlemen's Council and Hawai‘i Farm Bureau.  Your Committee received comments on this measure from the Department of Agriculture, Department of Budget and Finance, Agribusiness Development Corporation, and Tax Foundation of Hawaii.

     Your Committee finds that the Agribusiness Development Corporation is an agency administratively attached to the Department of Agriculture and tasked with transitioning fallow plantation land into cropland to provide economic opportunities for diversified agriculture operations.  Your Committee further finds that there is no fund or entity dedicated to conserve and protect agricultural lands pursuant to Article XI, section 3, of the Constitution of the State of Hawaii.  Your Committee has heard the Agribusiness Development Corporation's testimony and agrees that the funds appropriated by this measure would be best administered by the Department of Agriculture, which has a broader perspective on agriculture in the State and is therefore better suited to administer the program set forth in this measure.

     Your Committee has amended this measure by:

     (1)  Deleting references to the Agribusiness Development Corporation;

     (2)  Deleting the amendments to section 163D-17, Hawaii Revised Statutes, which establishes the Hawaii agricultural development revolving fund;

     (3)  Establishing an agricultural land acquisition fund under chapter 141, Hawaii Revised Statutes;

     (4)  Designating 10 cents of the environmental response, energy, and food security tax per barrel under section 243-3.5, Hawaii Revised Statutes, to the agricultural land acquisition fund, rather than the Hawaii agricultural development revolving fund;

     (5)  Requiring that any monies deposited into the agricultural land acquisition fund shall be expended at the sole discretion of the Chairperson of the Board of Agriculture for the acquisition, administration, maintenance, and management of agricultural lands; and

     (6)  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 S.B. No. 2795, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2795, 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