SB509

SECTION 1. The legislature finds that the agricultural sector serves as a cornerstone of the State's economy and cultural identity by providing essential food products, employment, and sustainable land management practices that, when managed properly, contribute to the State's overall food supply. Although the State's livestock industry contributes significantly to the State's food security and local agricultural output, particularly through beef and pork production, it also faces significant and substantial barriers because of the limited number of licensed slaughterhouses in the State that are capable of processing locally raised animals and livestock. The legislature notes that California's production of red meat from federally inspected and state inspected slaughterhouses during December 2022 grew six per cent from December 2021, while Hawaii's production of red meat during December 2022 fell eight per cent from the previous year.

The legislature recognizes that the number of animal slaughterhouses in the State, and their respective capacities, are limited. Notably, only one slaughterhouse on Oahu currently slaughters hogs. The current lack of adequate slaughterhouse facilities compels many local ranchers and farmers to either ship their livestock to the continental United States for processing, which can increase costs and environmental impacts from shipping and production, thereby decreasing the economic potential for the State's agricultural producers and related sectors.

The legislature further recognizes the importance of local food sustainability and resilience as outlined in the Aloha+ Challenge and other state initiatives that seek to increase local food production and reduce reliance on imported foods. The strategic development of additional slaughterhouse facilities in the State would enhance the capacity of the State's agricultural sector to meet these goals and provide additional employment opportunities in the State.

The legislature further finds that the department of business, economic development, and tourism is equipped with expertise in infrastructure development, land use, and economic planning and is well positioned to conduct a comprehensive, data-driven evaluation of locations across the State that are environmentally, economically, and logistically suited for the construction or expansion of slaughterhouse facilities. A thorough assessment of these potential sites for slaughterhouse development is appropriate to support the growth and sustainability of the local livestock industry, increase food security, and contribute to the State's broader environmental and economic goals, including contributing to the State's gross domestic product through potential increases in profit margins for local farmers, ranchers, and allied operators in the State.

Accordingly, the purpose of this Act is to:

(1) Require the department of business, economic development, and tourism, in collaboration with the agribusiness development corporation, to identify sites throughout the State that are suitable for the development of slaughterhouses; and

(2) Require the agribusiness development corporation to plan, design, construct, and operate new animal slaughterhouses throughout the State.

SECTION 2. Chapter 163D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§163D- Animal slaughterhouses. (a) The department of business, economic development, and tourism, in collaboration with the corporation, shall identify sites throughout the State that, based on location, land usage, and available resources, are suitable for the development of slaughterhouses. The suitability evaluation shall also consider key factors, such as proximity to livestock production areas, potential environmental impacts, water and energy resources, potential for sustainable practices, and the needs of rural and underserved communities.

(b) The corporation shall plan, design, construct, and operate animal slaughterhouses at each site identified pursuant to subsection (a).

(1) Consider market conditions in determining the types and sizes of animals that should be slaughtered at any given time;

(2) Ensure that each slaughterhouse:

(A) Serves as a sustainable source of locally born and raised animal protein; and

(B) Harvests or processes non-beef animals, including axis deer, hogs, sheep, and goats, for local food production; and

(3) Comply with any requirements established by:

(A) The United States Department of Agriculture;

(B) The department of health; and

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $200,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the development of slaughterhouses throughout the State, as follows:

Plans $

Design $

Construction $

Equipment $

Total funding $200,000.

The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2025.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	509
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII