STAND. COM. REP. NO. 39

Honolulu, Hawaii

, 2025

RE: H.B. No. 774

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Agriculture & Food Systems, to which was referred H.B. No. 774 entitled:

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

begs leave to report as follows:

The purpose of this measure is to establish a food and product innovation network within the Agribusiness Development Corporation to enable businesses to scale up new products from research and development to manufacturing and commercialization.

Your Committee received testimony in support of this measure from the Department of Agriculture; Department of Business, Economic Development, and Tourism; University of Hawai‘i System; Agribusiness Development Corporation; Hawai‘i Farm Bureau; Hawai‘i Farmers Union United; and Hawaii Food Industry Association.

Your Committee finds that establishing a food and product innovation network is critical to meeting the State's agricultural and economic diversification goals. Additionally, a network of open-access food and value-added product development facilities in Hawaii would support the production of new value-added products, which would allow locally-produced value-added goods to compete with imported products. This measure strengthens the local economy by capitalizing on the Hawaii brand and supporting local producers in expanding into new export markets.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Agriculture & Food Systems that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 774, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 774, H.D. 1, and be referred to your Committee on Economic Development & Technology.

Respectfully submitted on behalf of the members of the Committee on Agriculture & Food Systems,

____________________________

KIRSTIN KAHALOA, Chair