STAND. COM. REP. NO. 2574

Honolulu, Hawaii

RE: S.B. No. 1208

S.D. 2

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 S.B. No. 1208, S.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 promote agricultural economic development by establishing the agribusiness land and facilities special fund to enable the Agribusiness Development Corporation to acquire, operate, and maintain large tracts of former agricultural land.

Prior to decision making on this measure, your Committee made available for public review a proposed S.D. 2 of this measure. The proposed S.D. 2 authorizes the issuance of special purpose revenue bonds to assist Twin Bridge Farms, Inc., to purchase additional lands.

Your Committee received written comments in support of the proposed S.D. 2 from the Department of Agriculture; the Agribusiness Development Corporation; the Hawaii Farm Bureau Federation; Twin Bridge Farms, Inc.; Ulupono Initiative; and one private individual.

Your Committee received written comments on the proposed S.D. 2 from the Department of Budget and Finance.

Although the proposed S.D. 2 was the subject of the public hearing held on February 6, 2018, your Committee also received written comments in support of S.B. 1208, S.D. 1 from one private individual.

Your Committee finds that in 2016, the Governor pledged to double local food production by 2030. Your Committee further finds that in order to achieve this goal, the State needs to support the growth of its local farming and ranching industries. In furtherance of the State's food production goals, your Committee finds it important to assist Twin Bridge Farms, Inc., a local farm known for producing high quality products, in purchasing additional lands to increase the farm's food production. Your Committee further finds that the issuance of special purpose revenue bonds pursuant to this measure is in the public interest and constitutes assistance to agricultural enterprises under part X of Chapter 39A, Hawaii Revised Statutes.

Your Committee has amended S.B. 1208, S.D. 1 by:

(1) Replacing its contents with contents of the proposed draft of S.B. No. 1208, S.D. 2; and

(2) Making it effective upon its approval.

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 S.B. No. 1208, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1208, S.D. 2.

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

________________________________

DONOVAN M. DELA CRUZ, Chair