STAND. COM. REP. NO. 3040

Honolulu, Hawaii

RE: S.B. No. 2712

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection, and Health and Judiciary, to which was referred S.B. No. 2712, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

beg leave to report as follows:

The purpose and intent of this measure is to update existing laws concerning agricultural cooperative associations and consumer cooperative associations with regard to, among other things, operations as resale agents and conversions.

Your Committees received testimony in support of this measure from the Hawaii Small Business Development Center, East Hawaii; Food and Agriculture Initiatives, The Kohala Center; and one individual.

Your Committees find that a cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. In Hawaii specifically, the costs of operating businesses are high due to our geographic isolation, and business owners see increased costs in terms of building, agricultural inputs, packaging, machinery, and labor. The cooperative business model therefore provides an avenue for small businesses to come together to obtain an economic benefit that might mean the difference between the success and failure of their businesses.

Your Committees further find that Hawaii's Agricultural Cooperative Associations Act was enacted in 1949, which is based on the Uniform Agricultural Cooperative Associations Act. This measure provides important updates to allow for the expansion of lawful practices within cooperatives so that Hawaii's small businesses and cooperatives can continue to evolve and take advantage of new markets, both locally and globally.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection, and Health and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2712, S.D. 1, and recommend that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committees on Commerce, Consumer Protection, and Health and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ ROSALYN H. BAKER, Chair