STAND. COM. REP. NO. 45

Honolulu, Hawaii

RE:    S.B. No. 612

       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. 612 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Appropriate funds to reimburse qualified producers of certain products for their cost of feed; and

     (2)  Appropriate funds to reimburse feed developers for the costs of feed development.

     Your Committee received testimony in support of this measure from the Department of Agriculture; Hawai‘i Farm Bureau, Maui County Farm Bureau; Hawaii Cattlemen's Council, Inc.; Ponoholo Ranch, Limited; and Meadow Gold Dairies.  Your Committee received testimony in opposition to this measure from Animal Rights Hawaii and one individual.

     Your Committee finds that the cost of imported feed for livestock production is increasing because of market forces and transportation expenses, and that the rising cost of imported feed is one of the biggest challenges for the State's livestock industry.  Your Committee further finds that subsidizing a feed development program in the State to help address the needs of Hawaii's livestock producers and feed developers will benefit the State's economy and help meet the State's sustainability goals.

     Your Committee has amended this measure by:

     (1)  As recommended by the Department of Agriculture, inserting a new section to repeal the reference to the application of documentation of animal feed development costs for costs incurred after July 1, 2016, under the qualified feed developer grant program, section 155D‑2.5(b), Hawaii Revised Statutes, to be consistent with the comparable provision in the qualified producer grant program, section 155D-2(b), Hawaii Revised Statutes;

     (2)  Specifying a total appropriation amount of $2,000,000, with:

          (A)  $1,000,000 allocated to reimburse qualified producers; and

          (B)  $1,000,000 allocated to reimburse qualified feed developers; 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. 612, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 612, 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