STAND. COM. REP. NO. 2302

Honolulu, Hawaii

RE: S.B. No. 2986

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. 2986 entitled:

"A BILL FOR AN ACT RELATING TO HEMP,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Eliminate duplicative regulations of hemp production;

(2) Establish and revise rules for processing hemp;

(3) Require transparency in the labeling of hemp products; and

(4) Allow licensed hemp producers to sell hemp directly too consumers that reside out-of-state.

Your Committee received testimony in support of this measure from South Maui Gardens, Hawaii Royal Hemp, Hawaii Islands Hemp Farmers Center, Hawai‘i Farmers Union United, Hawaii Hemp Farmers Association, and eight individuals. Your Committee received testimony in opposition to this measure from the Department of the Attorney General. Your Committee received comments on this measure from the Department of Agriculture, Department of Health, and one individual.

Your Committee finds that the existing regulation of hemp production and processing in the State places a heavy burden on hemp producers. That heavy burden has undermined the competitiveness of Hawaii's hemp industry and the livelihood of many farmers who rely on the additional revenues generated through hemp production.

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. 2986 and recommends that it pass Second Reading and be referred to your Committee on Commerce and Consumer Protection.

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

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MIKE GABBARD, Chair