STAND. COM. REP. NO. 3023

Honolulu, Hawaii

RE: S.B. No. 2218

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2218 entitled:

"A BILL FOR AN ACT RELATING TO A FOOD HUB PILOT PROGRAM,"

begs leave to report as follows:

The purpose and intent of this measure is to increase consumers' access to fresh, healthy food that is produced locally.

More specifically, the measure:

(1) Requires the Department of Agriculture to establish a five-year food hub pilot program to increase access to local food;

(2) Provides for the award of grant funding to qualified applicants wishing to establish or expand a food hub;

(3) Requires the Department of Agriculture to submit interim and final reports to the Legislature;

(4) Appropriates moneys for the pilot program; and

(5) Authorizes the issuance of general obligation bonds for the Honalo Marshalling Yard to be developed as a food hub.

Your Committee received written comments in support of this measure from the Hawaii Farm Bureau, Hawaii Farmers Union United, Hawaii Food Industry Association, Ulupono Initiative, Hawaii Cattlemen's Council, Oahu Fresh, Hawaii Ulu Producers Cooperative, North Shore Economic Vitality Partnership, Hawaii Food+ Policy, Land Use Research Foundation of Hawaii, Hawaii Primary Care Association, Hawaii Alliance for Progressive Action, Shaka Tea, Kulanui.org, Tinyville Farm, Puamana Gardens, Kohana Family Farms, Mamaki Ola Farm and Education LLC, and numerous individuals.

Your Committee received written comments on this measure from the Department of Budget and Finance.

Your Committee finds that the establishment of food hubs under the pilot program will support efforts to strengthen the State's food security by encouraging the production of more locally grown food and facilitating the aggregation, storage, processing, distribution, and marketing of locally produced food products.

Your Committee has amended this measure by:

(1) Specifying that the receipt of grant funding under the pilot program shall be conditioned upon the recipient's compliance with all applicable state and federal food safety laws, rules, and regulations, including the FDA Food Safety Modernization Act, P.L. 111-353, and that Act's provisions on supplier verification;

(2) Correcting the lapse date of the general obligation bond funds appropriated by the measure from June 30, 2025, to June 30, 2024;

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

(4) 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. 2218, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2218, S.D. 1.

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

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DONOVAN M. DELA CRUZ, Chair