STAND. COM. REP. NO. 1376-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2522

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Agriculture and Economic Development & Business, to which was referred S.B. No. 2522, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

beg leave to report as follows:

The purpose of this measure is to provide equity financing to Hawaii agriculture businesses to enable the businesses to expand and increase production by establishing the Agriculture Accelerator Program (Program) that:

(1) Authorizes the Agribusiness Development Corporation, with approval by its Board of Directors, to provide monies to existing or new agriculture businesses that engage in farming, aquaculture, or ranching activities in the State in return for one to six percent of the business's equity;

(2) Specifies the allowable uses of the equity funds by the agricultural business, including purchasing equipment, improving energy efficiency, developing new process and packing facilities, food safety training, and marketing support; and

(3) Establishes the Agriculture Accelerator Special Fund to provide funding for the Program.

The Agribusiness Development Corporation, Smart Yields, Oahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, Hawaii Cattlemen's Council, Inc., Mamalani, and a concerned individual supported this measure. The Department of Agriculture, Department of Budget and Finance, and Hawai‘i Farm Bureau commented on this measure.

Your Committees have amended this measure by changing its effective date to July 31, 2150.

As affirmed by the records of votes of the members of your Committees on Agriculture and Economic Development & Business that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2522, S.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2522, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Economic Development & Business,

____________________________ CINDY EVANS, Chair

____________________________ RICHARD P. CREAGAN, Chair