SB558 HD1

SECTION 1. The legislature finds that establishing a food and product innovation network is critical to meeting the State's agricultural and economic diversification goals. The network will allow businesses in the State to capitalize globally on the "made in Hawaii", "produced in Hawaii", or "processed in Hawaii" brand; create world-class products; and scale up production by providing the businesses with access to a diverse suite of manufacturing equipment and industry expertise.

Accordingly, the purpose of this Act is to establish and appropriate funds for a statewide network of open-access food and value-added product development facilities to enable businesses to scale up new products from research and development to manufacturing and commercialization.

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

"§163D- Food and product innovation network; established. (a) There is established within the corporation the food and product innovation network. The food and product innovation network shall:

(1) Allow businesses in the State to capitalize globally on the "made in Hawaii", "produced in Hawaii", or "processed in Hawaii" brand pursuant to section 486‑119;

(2) Create world-class products; and

(3) Scale up production by providing businesses with access to a diverse suite of manufacturing equipment and industry expertise.

(b) Partner members of the food and product innovation network shall include:

(1) The department of education food and product innovation center in Kekaha, on the island of Kauai;

(2) The foreign-trade zone facility in Hilo, on the island of Hawaii;

(3) The university of Hawaii Maui college food innovation center, on the island of Maui; and

(4) The university of Hawaii Leeward community college value-added product development center in Wahiawa, on the island of Oahu.

(1) Offer a range of resources within the wider network to support innovation and business development, including courses and events relating to food and value-added product development, entrepreneurship, marketing, branding, business management, workforce development, intellectual property protection, and other topics;

(2) Provide new product development support from early‑stage trials to commercialization by establishing a network of facilities with equipment of various scales, providing expert advice, and offering resources tailored to the regional economies;

(3) Provide low-risk commercial production with appropriate certifications for exporting products and selling products locally;

(4) Provide recommendations on process optimization by offering advice and networking, identifying and testing equipment, planning trials, and analyzing results;

(5) Increase exports by securing facilities and developing compliance programs for off-shore markets; provided that each county shall have no more than two food and product innovation network facilities that produce products labeled "made in Hawaii", "produced in Hawaii", or "processed in Hawaii" pursuant to section 486-119;

(6) Develop entrepreneurs to grow the State's economy; and

(7) Prepare businesses to scale up and achieve autonomous business success and sustainability.

(d) No later than twenty days prior to the convening of each regular session, the corporation, on behalf of the food and product innovation network, shall submit a report to the legislature that includes:

(1) A description of the food and product innovation network's activities and progress in the preceding year, including the activities and progress of primary members and partner members, in response to the directives established pursuant to subsection (c);

(2) An assessment of any progress made in growing the State's agriculture industry, food industry, and related industries, and in meeting the State's food security goals; and

(3) Any proposed legislation."

SECTION 3. Section 163D-2, Hawaii Revised Statutes, is amended by adding five new definitions to be appropriately inserted and to read as follows:

""Open access" means the availability of infrastructure, expertise, financing, and market opportunities that enable food producers, processors, and entrepreneurs, regardless of scale, to develop and commercialize innovative food and value‑added products. "Open access" includes equitable access to shared facilities, pilot plants, food-grade laboratories, regulatory support, and industry networks to reduce barriers to entry and foster product development, scalability, and market expansion.

"Partner member" means an open-access food and value-added product development facility that is part of the food and product innovation network but is not managed or operated by the corporation.

"Primary member" means an open-access food and value-added product development facility that is part of the food and product innovation network and is managed and operated by the corporation.

"Wider network" means collaborative ecosystems that connect food industry stakeholders, research institutions, technology providers, and policymakers to share knowledge, foster innovation, and accelerate commercialization; provide businesses with direct access to research and development, advanced manufacturing capabilities, technical expertise, and global market insights; and drive industry growth and competitiveness by promoting transparency, cross-sector partnerships, and seamless information exchange.

"World-class products" means food and value-added products that meet internationally recognized standards for quality, safety, sustainability, and market competitiveness and leverage high-quality ingredients, cutting-edge processing techniques, and consumer-driven innovation to ensure superior taste, nutritional value, and global marketability. Key attributes include compliance with leading food safety and quality certifications (e.g., HACCP, FSMA, ISO 22000), adherence to environmental and ethical sourcing standards, and alignment with emerging consumer trends such as clean-label, functional foods, and sustainable packaging."

SECTION 4. Section 163D-4, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The corporation shall [~~develop,~~]:

(1) Develop, promote, assist, and market agricultural products for local consumption, and shall promote and assist in commercial export of agricultural products[.]; and

(2) Oversee the food and product innovation network established pursuant to section 163D- ; provided that the responsibilities and operations of each partner member shall remain with the partner member."

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ 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 food and product innovation network established pursuant to this Act, including:

(1) $ for a food and product innovation facility in the county of Maui; provided that the facility shall utilize axis deer for producing food and value‑added products, including leather and pharmaceuticals;

(2) $ for a food and product innovation facility on the island of Oahu;

(3) $ for an open-access food and value-added product development facility in Hilo on the island of Hawaii; and

(4) $ for an open-access food and value-added product development facility in Kailua-Kona on the island of Hawaii.

The sums appropriated shall be expended by the agribusiness development corporation for the purposes of this Act.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 3000.

THE SENATE	S.B. NO.	558
THIRTY-THIRD LEGISLATURE, 2025		S.D. 2
STATE OF HAWAII		H.D. 1