STAND. COM. REP. NO. 3515

Honolulu, Hawaii

RE:    H.B. No. 2657

       H.D. 2

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 2657, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose and intent of this measure is to provide cost reimbursement to small business ventures that are in diversified agriculture and to farmers and ranchers on Molokai to help them meet the costs, including audit costs, of compliance with the requirements of the FDA Food Safety Modernization Act and state food safety laws.

     Specifically, this measure:

     (1)  Amends Act 387, Session Laws of Hawaii 1988, by replacing the revolving loan program for small business ventures in diversified agriculture on Molokai with a cost reimbursement program that includes Molokai ranchers and farmers among the entities that are eligible for cost reimbursements; and

     (2)  Appropriates an unspecified amount of general funds to the Maui Office of Economic Development to review and approve cost reimbursement applications.

     Your Committee received written comments in support of this measure from the Department of Agriculture, Hawaii Farm Bureau, a member of the Maui County Council, and two individuals.

     Your Committee finds that the costs that farmers and ranchers must incur to comply with federal and state requirements, including the food safety requirements of the FDA Food Safety Modernization Act, are prohibitive to certain farmers and ranchers.  Your Committee also finds that these high costs threaten the viability of farmers and ranchers on Molokai, and that the assistance provided by this measure will help the farmers and ranchers avoid closures that would have a detrimental effect on the diversified agricultural industry on Molokai.

     Should this measure be heard by the Committee on Conference, your Committee respectfully requests the Department of Agriculture provide an appropriation amount that is sufficient to enable the Maui Office of Economic Development to review and approve cost reimbursement applications.

     Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2657, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2657, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

JILL N. TOKUDA, Chair