STAND. COM. REP. NO. 2619

Honolulu, Hawaii

RE: S.B. No. 2556

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred S.B. No. 2556 entitled:

"A BILL FOR AN ACT RELATING TO MILK PRODUCTION,"

begs leave to report as follows:

The purpose and intent of this measure is to repeal chapter 157, Hawaii Revised Statutes, commonly referred to as the Milk Control Act.

Your Committee received testimony in support of this measure from the Hawaii Coffee Association, Kuahiwi Ranch, and Hawaii Foodservice Alliance LLC. Your Committee received testimony in opposition to this measure from Cloverleaf Dairy and Meadow Gold Dairies Hawaii. Your Committee received comments on this measure from the Department of the Attorney General and Department of Agriculture.

Your Committee finds that the Milk Control Act was put into effect in response to issues prevalent in the dairy industry of the 1960s, such as over-production and unfair pricing schemes. However, the Milk Control Act has become a burden for Hawaii's existing dairy industry, which is faced with high regulatory hurdles and is unable to compete with producers from outside the State. This measure repeals the Milk Control Act to strengthen Hawaii's dairy industry and lower prices for consumers.

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. 2556 and recommends that it pass Second Reading and be referred to your Committees on Commerce and Consumer Protection and Judiciary.

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

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MIKE GABBARD, Chair