STAND. COM. REP. NO. 1710

Honolulu, Hawaii

RE: H.B. No. 774

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 774, H.D. 2, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to establish 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.

Your Committee received written comments in support of this measure from the Agribusiness Development Corporation; Department of Agriculture; Department of Business, Economic Development, and Tourism; Department of Health; University of Hawaii System; Hawaii Farm Bureau; Hawaii Food Industry Association; Hawaii Forest Industry Association; Local Food Coalition; Maui Chamber of Commerce; Ulupono Initiative; and one individual.

Your Committee received written comments on this measure from Department of the Attorney General.

Your Committee finds that establishing a food and product development network will strengthen Hawaii's agricultural economy and help to ensure the long-term viability of local food production. Your Committee further finds that the network promises to empower farmers and producers, foster innovation, and build a more resilient and sustainable food system for the State.

Your Committee has amended this measure by:

(1) Inserting an appropriation in an unspecified amount for two full-time equivalent positions (2.0 FTE) and other operating expenses to assist with implementation; and

(2) Inserting an effective date of July 1, 2050, to encourage further discussion on the measure.

Your Committee notes that the Department of Health recommends an appropriation of $100,000 for the two full-time equivalent positions (one program specialist VI and one environmental health specialist V) and $100,000 for other expenses, including support travel, supplies, printing costs, and other related operating expenses.

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

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair