STAND. COM. REP. NO. 464

Honolulu, Hawaii

RE: S.B. No. 558

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Economic Development and Tourism and Agriculture and Environment, to which was referred S.B. No. 558 entitled:

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

beg leave to report as follows:

The purpose and intent 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 Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Department of Agriculture; Agribusiness Development Corporation; University of Hawaiʻi System; Hawaiʻi Farm Bureau; Local Food Coalition; Ulupono Initiative; Hawaii Food Industry Association; Hawaii Fish Company Inc.; Kanalani Ohana Farm; Hawaiʻi Food+ Policy; Maui Chamber of Commerce; Chamber of Commerce Hawaii; and Hawaiʻi Forest Industry Association.

Your Committees find that establishing a food and product innovation network is critical to meeting the State's food-independence and economic diversification goals. Forging connections within the agricultural industry and fostering value‑added product development will allow local businesses to capitalize on the "made in Hawaii" brand and scale up production. This measure will address systemic challenges in the State's agricultural sector and foster a resilient and diversified economy that benefits all residents.

Your Committees have amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Economic Development and Tourism and Agriculture and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 558, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 558, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Economic Development and Tourism and Agriculture and Environment,

________________________________ MIKE GABBARD, Chair

________________________________ LYNN DECOITE, Chair