STAND. COM. REP. NO. 2239

Honolulu, Hawaii

RE: S.B. No. 2473

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Agriculture and Environment, to which was referred S.B. No. 2473 entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

beg leave to report as follows:

The purpose and intent of this measure is to transfer the Agribusiness Development Corporation from the Department of Agriculture to the Department of Business, Economic Development, and Tourism.

Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Department of Agriculture, and one individual. Your Committees received testimony in opposition of this measure from the Hawai‘i Food Policy+; Pono Hawai‘i Initiative; Hawai‘i Alliance for Progressive Action; Hawai‘i Farm Bureau; Our Revolution Hawaii; We Are One, Inc.; and twenty-four individuals. Your Committees received comments on this measure from the Agribusiness Development Corporation.

Your Committees find that the primary mission of the Agribusiness Development Corporation (ADC) is to aggressively facilitate the development of agricultural enterprises to replace the economic loss caused by the closure of Hawaii's sugar and pineapple plantations. Your Committees recognize the concerns raised in testimony regarding this measure, and notes that the Department of Business, Economic Development, and Tourism (DBEDT) and ADC have similar missions to facilitate economic development in the State. According to testimony from the Department of Agriculture, its priorities and functions are primarily regulating and managing the existing agricultural industry and community.

Accordingly, to further the purpose of this measure, your Committees have amended this measure by:

(1) Repealing section 163D-8.5, Hawaii Revised Statutes, which requires the Board of Agriculture to approve all ADC projects, plans, and programs prior to implementation; and

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

Your Committees further note that should this measure be enacted, DBEDT may require additional positions to properly support the ADC.

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Agriculture and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2473, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2473, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy, Economic Development, and Tourism and Agriculture and Environment,

________________________________ MIKE GABBARD, Chair

________________________________ GLENN WAKAI, Chair