STAND. COM. REP. NO. 528-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 2236

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Agriculture & Food Systems, to which was referred H.B. No. 2236 entitled:

"A BILL FOR AN ACT RELATING TO NON-GENERAL FUNDS,"

begs leave to report as follows:

The purpose of this measure is to reclassify, repeal, or abolish certain non-general funds of the Department of Agriculture, pursuant to the recommendations made by the Auditor in Auditor's Report No. 23-13.

Your Committee received testimony in opposition to this measure from the Department of Agriculture. Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that the Office of the Auditor's Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of Agriculture, Report No. 23-13, found that certain non-general funds of the Department should be reclassified or repealed. This measure adopts certain recommendations of the Office of the Auditor related to those non-general funds.

Your Committee has amended this measure by:

(1) Retaining statutory language that established the Industrial Hemp Special Fund;

(2) Transferring any unencumbered balance in the Aquaculture Loan Reserve Fund to the Aquaculture Loan Revolving Fund, rather than the general fund;

(3) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Agriculture & Food Systems that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2236, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2236, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Agriculture & Food Systems,

____________________________

CEDRIC ASUEGA GATES, Chair