STAND. COM. REP. NO. 896

Honolulu, Hawaii

RE: S.B. No. 1027

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1027, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEMP,"

begs leave to report as follows:

The purpose and intent of this measure is to redesignate the industrial hemp special fund as the hemp special fund and authorize use of the moneys in the fund for the Department of Agriculture's duties regarding hemp as established by Act 14, Session Laws of Hawaii 2020.

Your Committee received written comments in support of this measure from the Department of Agriculture.

Your Committee recognizes that hemp cultivation can be a significant asset and contribute to the State's economy. Your Committee notes that Act 14, Session Laws of Hawaii 2020, assigned the Department of Agriculture certain duties relating to the cultivation of hemp within the State. However, your Committee also notes that the Act did not establish a special fund to assist the Department in its efforts to fulfill these duties. Accordingly, your Committee believes that redesignating the industrial hemp special fund as the hemp special fund and amending its provisions will facilitate the Department of Agriculture's performance of its new regulatory duties relating to hemp.

Your Committee has amended this measure by:

(1) Appropriating moneys out of the hemp special fund for two fiscal years instead of one fiscal year;

(2) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(2) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1027, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1027, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair