STAND. COM. REP. NO. 2722

Honolulu, Hawaii

RE: S.B. No. 2085

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. 2085, 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 establish a grant program to support farms and agribusiness operations.

Specifically, this measure:

(1) Establishes the Agribusiness Development Corporation grant program to provide grants for agriculture-related projects and improvements;

(2) Establishes requirements to qualify for the grants through the program;

(3) Authorizes the Agribusiness Development Corporation to award grants; and

(4) Appropriates an unspecified amount for the program.

Your Committee received written comments in support of this measure from the Board of Agriculture, Agribusiness Development Corporation, Hawaii Cattlemen's Council, Hawaii Farm Bureau Federation, Land Use Research Foundation of Hawaii, Ulupono Initiative, OCC Legislative Priorities Committee of the Democratic Party of Hawaii, and Ho‘omanapono Political Action Committee.

Your Committee finds that many farmers and ranchers who wish to increase their farm's capacity and efficiency have difficulty securing financial support for their operations. A grant program will provide these farmers and ranchers with the necessary capital to modernize and expand their facilities, and this assistance will reduce the cost of production and allow locally-produced goods to better compete with imported products.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(2) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

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. 2085, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2085, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair