STAND. COM. REP. NO. 393

Honolulu, Hawaii

RE: S.B. No. 1003

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 Economic Development and Tourism, to which was referred S.B. No. 1003 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURAL DEVELOPMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the issuance of general obligation bonds for the Agribusiness Development Corporation (ADC) to purchase a land parcel in Kau for agricultural development.

Your Committee received testimony in support of this measure from the Synergistic Hawaiʻi Agriculture Council; Kaʻu Coffee Growers Cooperative; United Kaʻu Farmers Cooperative; Island Harvest Inc.; Hawaii Floriculture and Nursery Association; Kaʻu Ocean Vista Coffee Estate; Rusty's Hawaiian, Isla Custom Coffees; and three individuals.

Your Committee received comments on this measure from the Agribusiness Development Corporation and Hawaiʻi Farm Bureau.

Your Committee finds that Kau, on Hawaii island, has long been a cornerstone of the State's agricultural heritage, successfully diversifying farming and agricultural activities in the twenty-first century. A key region for agricultural stability, Kau has the potential to increase Hawaii's food security and resiliency. Your Committee believes that there is a current disparity in support to local farmers and agricultural workers, particularly in state assistance to Kau. This state assistance can be best actualized through the ADC, under the Department of Business, Economic Development, and Tourism, due to their clear mandate of providing key support, resources, and initiatives to local farmers throughout the State. This measure will bolster Kau by authorizing the issuance of general obligation funds for the ADC to purchase agricultural land in Kau to provide critical support to farms in the region.

Your Committee has amended this measure by:

(1) Specifying the name of the fee owner of the property to be acquired by ADC;

(2) Inserting a blank general obligation bonds issuance and appropriation amount;

(3) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

Your Committee notes that this measure, as amended, contains an unspecified general obligation bonds issuance and appropriation amount. Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider inserting an amount of $2,931,960.

As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1003, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1003, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,

________________________________

LYNN DECOITE, Chair