STAND. COM. REP. NO. 1494

Honolulu, Hawaii

, 2025

RE: S.B. No. 558

S.D. 2

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred S.B. No. 558, S.D. 2, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish a Food and Product Innovation Network within the Agribusiness Development Corporation; and

(2) Appropriate funds for food and product development or innovation facilities in the County of Maui and on the islands of Oahu and Hawaii.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development and Tourism; Department of Agriculture; Agribusiness Development Corporation; Ulupono Initiative; Local Food Coalition; Hawaiʻi Forest Industry Association; Hawaii Food Industry Association; Hawaiʻi Farm Bureau; Maui Chamber of Commerce; and four individuals.

Your Committee finds that expanding Hawaii's food and value-added product industries would help increase economic growth and diversification. Your Committee further finds that many emerging agribusinesses and entrepreneurs struggle with costs associated with research and product development, stifling the growth of new businesses. This measure provides these businesses with support for research and development, manufacturing, and commercialization, enabling businesses to scale up new products.

Your Committee has amended this measure by clarifying that:

(1) Partner members of the Food and Product Innovation Network shall include certain future facilities on the islands of Kauai, Hawaii, Maui, and Molokai, rather than the Department of Education center in Kekaha; and

(2) The appropriation will be for the development of Food and Product Innovation Network facilities, without specific allocations for various facilities.

Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider an appropriation amount of $350,000 for the development of Food and Product Innovation Network facilities.

As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 558, S.D. 2, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as S.B. No. 558, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

____________________________

GREGGOR ILAGAN, Chair