STAND. COM. REP. NO. 788

Honolulu, Hawaii

RE: S.B. No. 1547

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 S.B. No. 1547, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS TO ASSIST ALOUN KAUAI FARMING, AN AGRICULTURAL ENTERPRISE, IN THE FINANCE, OPERATION, AND MAINTENANCE OF A PROJECT TO REVITALIZE THE DAIRY INDUSTRY,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the issuance of special purpose revenue bonds to assist Aloun Kauai Farming, LLC in the planning, design, construction, and maintenance of an integrated dairy industry.

Your Committee received written comments in support of this measure from the Hawaii Farm Bureau.

Your Committee received written comments in opposition to this measure from two individuals.

Your Committee received written comments on this measure from the Department of Budget and Finance.

Your Committee finds that Hawaii's dairy industry has faced challenges over the years, leading to the closure of all but one commercial dairy in the State. Your Committee notes that supporting local dairy production is critical to increasing Hawaii's food security, reducing reliance on imported dairy products, and strengthening the State's agricultural economy. In addition, your Committee recognizes that the local dairy industry is essential for the Department of Education to meet its goal of locally sourcing thirty per cent of the food in school meals by 2030. Your Committee believes that the issuance of special purpose revenue bonds to assist Aloun Kauai Farming with the development of an integrated dairy industry is in the public interest and for the public health, safety, and general welfare.

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 S.B. No. 1547, S.D. 1, and recommends that it pass Third Reading.

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

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DONOVAN M. DELA CRUZ, Chair