STAND. COM. REP. NO. 389

Honolulu, Hawaii

RE: S.B. No. 827

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. 827 entitled:

"A BILL FOR AN ACT RELATING TO MEAT PROCESSING,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Department of Business, Economic Development, and Tourism to develop and implement a grant program to expand the meat processing capacity in the State; and

(2) Appropriate funds.

Your Committee received testimony in support of this measure from the Hawaiʻi Farm Bureau, Hawaii Food Industry Association, Maui Chamber of Commerce, Pūlama Lānaʻi, and Hawaiʻi Farmers Union United.

Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism and Department of the Attorney General.

Your Committee finds that the State has an obligation to conserve, protect, and develop responsible self-sufficiency in Hawaii through the promotion of local agricultural and food production development. Due to its delicate and isolated ecosystems, Hawaii faces challenges with invasive species and biosecurity, particularly regarding axis deer who continually damage the State's natural habitats and resources. To more effectively address invasive species that pose significant threats to Hawaii's environment, your Committee believes that biosecurity efforts can be furthered by encouraging hunters to assist in axis deer regulation. By expanding the State's meat processing capacity and allowing hunters to donate meat from axis deer and other wild game to meat processing facilities, this measure will help manage invasive species while providing a valuable protein source to its residents.

Your Committee notes the concerned raised by the Department of the Attorney General regarding the lack of standards for grants of public money, as required by the Hawaii State Constitution. Therefore, there is a need to amend this measure to address this concern.

Accordingly, your Committee has amended this measure by:

(1) Inserting language establishing standards an applicant for grants under this measure must comply with;

(2) Inserting language allowing hunters who donate meat to meat processing plants under the grant program to have access to the processing plants;

(3) Inserting language establishing two full-time equivalent (2.0 FTE) Meat Inspector positions;

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

(5) Amending section 1 to reflect its amended purpose; and

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

Your Committee notes that this measure, as amended, contains an unspecified appropriation amount. Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider inserting an appropriation amount to be subsequently requested by the Agribusiness Development Corporations, including costs for meat inspector positions.

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. 827, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 827, 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