STAND. COM. REP. NO. 2594

Honolulu, Hawaii

RE: S.B. No. 2950

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 Agriculture and Environment, to which was referred S.B. No. 2950 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURAL INSPECTION FEES,"

begs leave to report as follows:

The purpose and intent of this measure is to impose an inspection fee on certain imported agricultural products to be deposited into a special fund and expended by the Department of Agriculture.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources. Your Committee received testimony in opposition to this measure from the Hawaii Food Industry Association and one individual. Your Committee received comments on this measure from the Department of Budget and Finance, Department of the Attorney General, Department of Agriculture, and Tax Foundation of Hawaii.

Your Committee finds that Hawaii is uniquely vulnerable to invasive pests. Invasive pests are devastating to the State's natural environments and agricultural industry. This measure, as introduced, imposes an additional fee on certain agricultural products; however, according to testimony submitted by the Department of the Attorney General, an increase in the State's existing inspection fee would be better able to protect Hawaii from invasive species.

Accordingly, your Committee has amended this measure by:

(1) Deleting language that would have established a new inspection fee on certain imported agricultural products to be deposited into a special fund and expended by the Department of Agriculture;

(2) Increasing the inspection, quarantine, and eradication service fee under section 150A-5.3, Hawaii Revised Statutes, from seventy-five cents per one thousand pounds to five cents per pound; and

(3) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

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. 2950, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2950, S.D. 1, and be referred to your Committee on Ways and Means.

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

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MIKE GABBARD, Chair