STAND. COM. REP. NO 441

Honolulu, Hawaii

RE:    S.B. No. 382

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Agriculture, to which was referred S.B. No. 382 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose and intent of this measure is to establish within the livestock revitalization program a grant program for qualified feed developers.

     Your Committee received testimony in support of this measure from the Department of Agriculture, Hawaii Farm Bureau, Hawaii Cattlemen's Council, and Ulupono Initiative.

     Your Committee finds that Hawaii's livestock industry faces numerous challenges, with one of the biggest being the rising cost of feed for livestock production.  Having the taxpayers of Hawaii subsidize a feed development program is a good investment to meet Hawaii's sustainability goals; however, a long-term plan to subsidize imported feed, especially for export products, is not in the public interest.

     Your Committee has amended this measure by:

     (1)  Removing language throughout that refers to the sale or cultivation of feed or feed crops to or for qualified producers;

     (2)  Including transportation costs from Hawaii to be included in the calculation of feed development costs;

     (3)  Inserting language to require the Department of Agriculture to disburse funds on a prorated basis;

     (4)  Inserting language to cap each grant to $200,000 per qualified feed producer per year;

     (5)  Deleting the proviso in the appropriation relating to the qualified feed developer grant program;

     (6)  Inserting an appropriation for the Department of Agriculture to identify, assess, and validate locally sourced feed ingredients; and

     (7)  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 Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 382, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 382, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

RUSSELL E. RUDERMAN, Chair