STAND. COM. REP. NO. 392

Honolulu, Hawaii

, 2025

RE: H.B. No. 812

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Agriculture & Food Systems, to which was referred H.B. No. 812 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose of this measure is to require a contract for the purchase of local produce having a value of more than $250 to be for a term of at least five years.

Your Committee received testimony in support of this measure from the Hawai‘i Farm Bureau; Hawai‘i Farmers Union; and Hawaiʻi Food+ Policy. Your Committee received comments on this measure from the Department of Education and State Procurement Office.

Your Committee finds that Hawaii's farmers and ranchers face numerous challenges, including high operational costs, labor shortages, and market instability, which hinder their ability to expand production and invest in infrastructure. Additionally, short-term procurement contracts create further uncertainty, making it difficult for local producers to commit to long-term growth. This measure provides farmers with greater financial stability, promotes crop diversification and livestock expansion, and supports the State's goals of reducing reliance on imports and strengthening local agriculture.

Your Committee has amended this measure by:

(1) Increasing the minimum contract value threshold from $250 to $25,000;

(2) Authorizing, rather than requiring, the contracts for the purchase of local produce to be for a term of at least five years;

(3) Inserting language that requires the contracts to include a price adjustment clause to increase or decrease the value;

(4) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Agriculture & Food Systems that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 812, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 812, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Agriculture & Food Systems,

____________________________

KIRSTIN KAHALOA, Chair