STAND. COM. REP. NO. 3163

Honolulu, Hawaii

RE: H.B. No. 2041

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Economic Development, Tourism, and Technology and Agriculture and Environment, to which was referred H.B. No. 2041, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO AQUACULTURE,"

beg leave to report as follows:

The purpose and intent of this measure is to appropriate funds to establish an aquaculture incubator at the Natural Energy Laboratory of Hawaii Authority to bring together entrepreneurs and investors to develop Hawaii's aquaculture industry.

Your Committees received testimony in support of this measure from the Department of Business, Economic Development and Tourism; Department of Agriculture; Natural Energy Laboratory of Hawaii Authority; Hawaii Technology Development Corporation; Hawaii Strategic Development Corporation; Ulupono Initiative; Blue Ocean Mariculture; Marine Genetics; Cyanotech; Hawai‘i Farm Bureau; O‘ahu County Committee on Legislative Priorities from the Democratic Party of Hawai‘i; Hawaii Aquaculture and Aquaponics Association; and five individuals. Your Committees received comments on this measure from Kua‘āina Ulu ‘Auamo.

Your Committees find that aquaculture can help to diversify Hawaii's economy and that it is a fast-developing industry that has potential to attract investment capital, talented researchers, and aspiring entrepreneurs to Hawaii. Your Committees further find that aquaculture produces roughly fifty percent of the world's seafood supply and the value of the industry is expected to grow by thirty-eight percent by 2020, which equals $200,000,000,000. Your Committees recognize that Hawaii's natural resources create an opportunity to establish Hawaii as a leader in aquaculture and thereby bring in businesses from around the world to learn from Hawaii. Your Committees believe that the Natural Energy Laboratory of Hawaii Authority is a prime location to establish an aquaculture incubator given Hawaii's year-around growing climate, the biosecurity of its remote location, easy access to pristine seawater at various temperatures, and expertise of the Natural Energy Laboratory of Hawaii Authority staff.

Your Committees have amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Economic Development, Tourism, and Technology and Agriculture and Environment that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2041, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2041, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Economic Development, Tourism, and Technology and Agriculture and Environment,

________________________________ MIKE GABBARD, Chair

________________________________ GLENN WAKAI, Chair