CONFERENCE COMMITTEE REP. NO. 128

Honolulu, Hawaii

, 2025

RE: H.B. No. 774

H.D. 2

S.D. 1

C.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madam and Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 774, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO VALUE-ADDED PRODUCTS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Establish a Food and Product Innovation Network within the Agribusiness Development Corporation to enable businesses to scale up new products from research and development to manufacturing and commercialization; and

(2) Appropriate funds to implement the Food and Product Innovation Network, including for staff and other operating expenses.

Your Committee on Conference has amended this measure by:

(1) Specifying that the Food and Product Innovation Network (Network) shall operate under a centralized coordination structure administered by the Agribusiness Development Corporation;

(2) Expanding Hawaii-related branding to include "Hawaii made";

(3) Clarifying provisions related to the inclusion of future facilities and additional facilities on Oahu, as partner members of the Network;

(4) Expanding the requirements of the Network to include establishing pathways for greater opportunities, facilitating various partnerships, and engaging with national and international partners;

(5) Inserting an appropriation amount of $385,289 for the Department of Health for the Network, including $172,884 for two full-time equivalent (2.0 FTE) positions and $212,405 for other operating expenses;

(6) Changing the effective date to July 1, 2025; and

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

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 774, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 774, H.D. 2, S.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ LYNN DECOITE Chair	____________________________ KIRSTIN KAHALOA Co-Chair
____________________________ MIKE GABBARD Co-Chair	____________________________ GREGGOR ILAGAN Co-Chair
____________________________ GLENN WAKAI Co-Chair	____________________________ MATTHIAS KUSCH Co-Chair