STAND. COM. REP. NO. 264

Honolulu, Hawaii

RE:    S.B. No. 1205

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Agriculture and Environment, to which was referred S.B. No. 1205 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 a reimbursement transportation cost payment program within the Department of Agriculture to reimburse geographically disadvantaged eligible producers for a portion of the cost to transport eligible commodities or inputs used to produce an eligible commodity.

     Your Committee received testimony in support of this measure from the Department of Agriculture; Hawaii Cattlemen's Council, Inc.; Hawaii Coffee Association; Hawaii Crop Improvement Association; Hawai‘i Farm Bureau; Ponoholo Ranch, Limited; Larry Jefts Farms, LLC; and one individual.

     Your Committee finds that the ability for producers to transport agricultural commodities is critical as operations and markets expand.  Transportation of agricultural commodities can be costly to producers already financially burdened by agricultural operation expenses.  Your Committee finds that this measure seeks to provide financial relief to Hawaii's farmers and ranchers.

     Your Committee has amended this measure by:

     (1)  Requiring the Department of Agriculture to adopt rules pursuant to chapter 91, Hawaii Revised Statutes, for the Reimbursement Transportation Cost Payment Program (Program);

     (2)  Inserting an appropriation for one full-time equivalent (1.0 FTE) program coordinator position within the Department of Agriculture for the Program; and

     (3)  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 and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1205, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1205, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

MIKE GABBARD, Chair