STAND. COM. REP. NO.  1192

Honolulu, Hawaii

                , 2015

RE:   S.B. No. 382

      S.D. 2

      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 Agriculture, to which was referred S.B. No. 382, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose of this measure is to address the high cost of import feed that burdens Hawaii's livestock industry by, among other things:

(1)  Establishing in the Department of Agriculture a grant program to reimburse Qualified Feed Developers for a specified amount of their feed development costs;

(2)  Appropriating funds for the Livestock Revitalization Program to reimburse specified Qualified Producers for the cost of feed and Qualified Feed Developers for the costs of developing feed for sale; and

(3)  Appropriating funds to the Department of Agriculture to identify, assess, and validate locally sourced feed ingredients.

The Hawaii Farm Bureau Federation, Hawaii Cattlemen's Council, and two concerned individuals supported this measure.  The Land Use Research Foundation of Hawaii supported the intent of this measure.  The Department of Agriculture and Ulupono Initiative supported this measure with amendments.

     Your Committee has amended this measure by deleting its contents and inserting the substantive provisions of H.B. No. 508 H.D. 1, that, among other things:

     (1)  Establishes and funds a grant program within the Department of Agriculture for Qualified Feed Developers;

     (2)  Requires that the amount of the grant funds disbursed to a Qualified Feed Developer be based on cost of goods sold, as verified by a certified public accountant;

     (3)  Allows qualified feed developer businesses to manufacture feed for Qualified Producers;

(4)  Appropriates funds to reimburse specified Qualified Producers for the cost of feed and Qualified Feed Developers for the costs of developing feed for sale to Qualified Producers;

     (5)  Appropriates funds to the Department of Agriculture to identify, assess, and validate locally sourced feed ingredients available to Qualified Feed Developers; and

     (6)  Has an effective date of July 1, 2015.

     As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 382, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 382, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Agriculture,

____________________________

CLIFT TSUJI, Chair