STAND. COM. REP. NO. 2291

Honolulu, Hawaii

RE: S.B. No. 2522

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred S.B. No. 2522 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose and intent of this measure is to provide creative means of financing for agriculture businesses in Hawaii by:

(1) Establishing the agriculture accelerator program to authorize the Agribusiness Development Corporation (ADC) to provide monies to and invest in existing or new agriculture businesses approved by the Board of Directors of the ADC in return for equity in those agriculture businesses; and

(2) Establishing an agriculture accelerator special fund to provide funds for the ADC to provide monies to and invest in agriculture businesses under the agriculture accelerator program.

Your Committee received testimony in support of this measure from the Department of Agriculture; Agribusiness Development Corporation; Hawai‘i Farm Bureau; and Hawaii Cattlemen's Council, Inc. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that the ability for the ADC to establish an agriculture accelerator program and issue grants will provide the means to assist local farming operations, make investments to strengthen and diversify Hawaii's agriculture, attract and retain businesses, and streamline the ADC's operations. Your Committee further finds that an agriculture accelerator program may help foster partnerships to facilitate agribusiness projects and help grow Hawaii's agriculture industry.

Your Committee emphasizes its belief that priority should be given to agriculture focused on crops for local use and consumption, rather than export crops, under any agriculture accelerator program.

As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2522 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Agriculture and Environment,

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MIKE GABBARD, Chair