STAND. COM. REP. NO. 395

Honolulu, Hawaii

RE: S.B. No. 1325

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. 1325 entitled:

"A BILL FOR AN ACT RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION,"

begs leave to report as follows:

The purpose and intent of this measure is to include agricultural tourism in the definition of "enterprise" to authorize the Agribusiness Development Corporation to financially support farming businesses engaged in agricultural tourism.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Agribusiness Development Corporation; Hawaiʻi Farm Bureau; Maui Chamber of Commerce; Hawaiʻi Farmers Union United; and Hawaii Food+ Policy.

Your Committee finds that agritourism is a distinctive, growing industry in the State that merges agriculture with tourism and offers visitors unique experiences while supporting local production. The Hawaii Revised Statutes does not currently define "agricultural tourism", creating ambiguity and gaps in support services. By defining the term and including it in the definition of "enterprise", this measure grants the Agribusiness Development Corporation with the authority to provide financial and strategic support to farming businesses engaged in agritourism.

Your Committee has amended this measure by:

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

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

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. 1325, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1325, 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,

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LYNN DECOITE, Chair