STAND. COM. REP. NO. 3565

Honolulu, Hawaii

RE: H.B. No. 1474

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1474, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose and intent of this measure is to amend the industrial hemp pilot program.

Specifically, the measure:

(1) Creates an industrial hemp pilot program special fund;

(2) Provides that agricultural land used for cultivation of industrial hemp qualify for the minimum dedication period and be assessed at the lowest percentage of fair market value; and

(3) Limits industrial hemp cultivation to licensed owners, lessees, or occupiers of land within the state agricultural land district.

For purposes of a public hearing, your Committee circulated a proposed S.D. 1 (Proposed Draft) of the measure and notified the public that your Committee would be accepting testimony on the Proposed Draft that amends the measure by deleting the existing provisions and replaces its contents with language that appropriates moneys to the Department of Agriculture to host the 2020 State Agricultural and Rural Leaders Legislative Agricultural Chairs Summit.

Your Committee received written comments in support of the Proposed Draft from the Department of Agriculture; Hawaii Cattlemens Council; Hawaii Farm Bureau Federation; the Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii; and the Ulupono Initiative.

Your Committee received written comments in opposition to the Proposed Draft from the League of Women Voters of Hawaii.

Your Committee finds that appropriating funds to the Department of Agriculture to host the 2020 State Agricultural and Rural Leaders Legislative Agricultural Chairs Summit will promote the development of solutions to address the State's agricultural challenges.

Your Committee has amended this measure by adopting the Proposed Draft.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1474, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1474, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair