STAND. COM. REP. NO. 1457

Honolulu, Hawaii

, 2019

RE: S.B. No. 485

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred S.B. No. 485, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO BIOSECURITY,"

begs leave to report as follows:

The purpose of this measure is to increase the portion of the barrel tax on petroleum products that is deposited into the Agricultural Development and Food Security Special Fund (Special Fund) from fifteen cents per barrel to thirty cents per barrel, to fund agricultural inspector positions and other activities intended to increase agricultural production or processing.

Ulupono Initiative, Hawai‘i Farm Bureau, The Nature Conservancy of Hawai‘i, and an individual supported this measure. The Department of Land and Natural Resources and Department of Agriculture provided comments.

Your Committee has amended this measure by changing the portion of the barrel tax on petroleum products to be deposited into the Special Fund to an unspecified amount.

Your Committee notes that the Special Fund is capable of funding agricultural inspector positions and other activities intended to increase agricultural production or processing. In fiscal year 2018, the Special Fund had an unencumbered cash balance of $5,068,206. Your Committee further notes that the Pest Inspection, Quarantine, and Eradication Fund may also be another capable source of funding, as that fund had an unencumbered cash balance of $8,298,039 in fiscal year 2018.

As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 485, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 485, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

NICOLE E. LOWEN, Chair