STAND. COM. REP. NO. 560

Honolulu, Hawaii

, 2025

RE: H.B. No. 774

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred H.B. No. 774, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to establish the Food and Product Innovation Network within the Agribusiness Development Corporation.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Department of Agriculture; University of Hawaiʻi; Agribusiness Development Corporation; Ulupono Initiative; Hawaii Food Industry Association; Chamber of Commerce Hawaii; Hawaiʻi Forest Industry Association; Local Food Coalition; Hawaiʻi Farm Bureau; Maui Chamber of Commerce; and Hawaii Fish Company Inc.

Your Committee finds that establishing a network of open-access food and value-added product development facilities would encourage economic development and diversification. This measure addresses this need by establishing the Food and Product Innovation Network to help businesses develop locally made, world-class products and provide access to a diverse suite of manufacturing equipment and industry expertise.

Your Committee has amended this measure by replacing the Department of Education Food and Product Innovation Center in Kekaha, Kauai with future facilities to be developed on lands owned by the Agribusiness Development Corporation in Kekaha, Kauai; a to-be-determined location on Hawaii island; and additional facilities on Maui and Molokai as partner members of the Food and Product Innovation Network.

As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 774, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 774, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

____________________________

GREGGOR ILAGAN, Chair