STAND. COM. REP. NO. 44

Honolulu, Hawaii

RE: S.B. No. 451

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred S.B. No. 451 entitled:

"A BILL FOR AN ACT RELATING TO DAIRY PRODUCERS,"

begs leave to report as follows:

The purpose and intent of this measure is to allow consumers to obtain unpasteurized milk through herdshare agreements, which are private contractual agreements.

Your Committee received testimony in support of this measure from Cloudwater Farm, LLC; and eight individuals. Your Committee received testimony in opposition to this measure from the Department of Health. Your Committee received comments on this measure from the Department of Agriculture and South Mountain Ranch LLC.

Your Committee finds that at least thirty-five states permit some form of sale or distribution of unpasteurized cow, sheep, or goat milk for human consumption, twelve of which permit the sale of unpasteurized milk in retail stores. Recently, demand for local products has increased, including the demand for locally-produced dairy products. Many small local farms have the capability and desire to offer unpasteurized dairy products to consumers that seek locally-produced, unpasteurized dairy products.

This measure prohibits consumers from selling unpasteurized milk or milk products obtained through a herdshare agreement and producers from publishing any statement pertaining to an endorsement by the Department of Health.

Your Committee heard testimony from the Department of Health on its adamant opposition to this measure from a public health standpoint. Your Committee further acknowledges that there is controversy surrounding the potential sale of raw milk as a business matter and its potential negative health effects. Nonetheless, your Committee finds that this measure should move forward for further discussion at this time.

Your Committee has amended this measure by adding the term "water buffalo" to the definition of a dairy animal to include unpasteurized water buffalo milk products in the subject of this measure.

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. 451, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 451, S.D. 1, and be referred to your Committee on Commerce, Consumer Protection, and Health.

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

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MIKE GABBARD, Chair