STAND. COM. REP. NO. 1252

Honolulu, Hawaii

RE: H.B. No. 774

H.D. 2

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 H.B. No. 774, H.D. 2, 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) Require reports to the Legislature.

Your Committees received testimony in support of this measure from the Department of Agriculture; Department of Business, Economic Development, and Tourism; Agribusiness Development Corporation; University of Hawaiʻi System; Hawaiʻi Farm Bureau; Local Food Coalition; Hawaii Food Industry Association; Ulupono Initiative; Hawaiʻi Forest Industry Association; Hawaii Food+ Policy; Maui Chamber of Commerce; and one individual.

Your Committees find that Hawaii's agricultural industry faces a range of challenges, including limited processing infrastructure, barriers to market entry, and dependence on

imported goods. Your Committees believe that innovative initiatives across the State are needed to ensure that resources are distributed equitably among counties, allowing for regional specialization and addressing the unique agricultural strengths and needs of each county. A statewide Food and Product Innovation Network, as established by this measure, would address these challenges by fostering collaboration, innovation, and value-added production across the State.

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 H.B. No. 774, H.D. 2, and recommend that it pass Second Reading 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