CONFERENCE COMMITTEE REP. NO. 12

Honolulu, Hawaii

                 , 2017

RE:    S.B. No. 773

       S.D. 2

       H.D. 1

       C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 773, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to:

     (1)  Establish the industrial hemp special fund to be expended by the Department of Agriculture to carry out the purposes of the industrial hemp pilot program;

     (2)  Allow applicants to the industrial hemp pilot program to apply for a license at any time during the year in which the applicant plans to grow industrial hemp;

     (3)  Require each county to recognize the cultivation of industrial hemp for the purposes of the pilot program as an agricultural product, use, and activity;

     (4)  Specify that any agricultural land used for cultivation of industrial hemp for the purposes of the pilot program shall qualify for the minimum dedication period and be assessed at the lowest percentage of fair market value;

     (5)  Limit the cultivation of industrial hemp to licensed owners, lessees, or occupiers of lands within the state agricultural land use district; and

     (6)  Amend the physical facility requirements for pilot program licensees and repeal the requirement for a movement permit to transport plants or plant material.

     Your Committee on Conference finds that Act 228, Session Laws of Hawaii 2016, established the industrial hemp pilot program to allow the cultivation of industrial hemp and distribution of its seed in Hawaii through limited activities by licensee-agents of the Board of Agriculture for purposes of agricultural or academic research.  To ensure successful implementation, further amendments to state law need to be made.

     Your Committee on Conference has amended this measure by:

     (1)  Deleting language that would have established the industrial hemp special fund to be expended by the Department of Agriculture to carry out the purposes of the industrial hemp pilot program;

     (2)  Deleting the general fund appropriation for positions within the Department of Agriculture and program operations for the industrial hemp pilot program, because this appropriation is included in H.B. 100, H.D. 1, S.D. 1, C.D. 1, Regular Session of 2017, the General Appropriations Act of 2017;

     (3)  Making it effective upon its approval; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 773, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 773, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ RICHARD P. CREAGAN Co-Chair	____________________________ MIKE GABBARD Chair
____________________________ MARK M. NAKASHIMA Co-Chair	____________________________ CLARENCE K. NISHIHARA Co-Chair
____________________________ TY J.K. CULLEN Co-Chair	____________________________ MAILE S.L. SHIMABUKURO Co-Chair