STAND. COM. REP. NO. 1822-18

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 Committee on Finance, to which was referred S.B. No. 2522, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs 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:

(1) Establishing the Agriculture Accelerator Program (Program) that:

(A) Authorizes the Agribusiness Development Corporation, with approval by its Board of Directors, to provide moneys 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; and

(B) 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, Kamehameha Schools, and Hawaii Cattlemen's Council, Inc. supported this measure. The Department of Budget and Finance, Department of Agriculture, and Hawai‘i Farm Bureau provided comments.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2522, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair