STAND. COM. REP. NO. 414

Honolulu, Hawaii

, 2019

RE: H.B. No. 262

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Agriculture, to which was referred H.B. No. 262 entitled:

"A BILL FOR AN ACT RELATING TO SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM INCENTIVES,"

begs leave to report as follows:

The purpose of this measure is to assist Hawaii residents, who are participants in the federal Supplemental Nutrition Assistance Program, to acquire healthy local food by:

(1) Establishing and requiring the Department of Agriculture (DOA) to develop and administer a Local Healthy Food Incentive Program for beneficiaries of the federal Supplemental Nutrition Assistance Program;

(2) Providing qualifying participants in the Local Healthy Food Incentive Program a dollar-for-dollar match of up to $20 per visit, per day, to purchase Hawaii-grown fresh fruits and vegetables from direct food retailers who participate in the federal Supplemental Nutrition Assistance Program;

(3) Requiring DOA to adopt implementing rules, with authorization to consult with private organizations; and

(4) Appropriating $1,000,000 for each year of fiscal biennium 2019-2021 for the administration of and matching funds for the Local Healthy Food Incentive Program.

The Hawaii Food Industry Association, AlohaCare, American Diabetes Association, Hawai‘i Farm Bureau, Hawai‘i Public Health Institute, American Heart Association, GreenWheel Food Hub, Hawai‘i Alliance for Community-Based Economic Development, Hawai‘i Primary Care Association, Hawaii Appleseed Center for Law & Economic Justice, Blue Zones Project-Hawaii, We Are One, Inc., Ka Ohana O Na Pua, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, Hawai‘i Community Foundation, Hawai‘i Localist, Greenleaf Farm, Kahumana Organic Farms, Temple of Spiritual Healing and Education, Inc., Deep Harbor, Inc., Local Food Coalition, Share Your Mana, K&R Enterprises, Pioneering Healthier Communities of Honolulu, Hawaii Food Bank, One Island's 'Same Canoe Local Food Challenge', and numerous concerned individuals supported this measure. The DOA, Department of Human Services, and Department of Health supported the intent and provided comments.

Your Committee has amended this measure by:

(1) Changing the appropriation amount to an unspecified sum;

(2) Deleting the requirement that DOA's rules shall be adopted pursuant to Chapter 91, Hawaii Revised Statutes, the Hawaii Administrative Procedures Act;

(3) Changing its effective date to July 31, 2150, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for clarity, consistency, and style.

Your Committee respectfully requests your Committee on Finance to consider and take appropriate action on DOA's concerns regarding this measure. DOA's testimony indicates that it does not have operational level personnel that can administer the Local Healthy Food Incentive Program for beneficiaries of the federal Supplemental Nutrition Assistance Program. Further, DOA would have to seek a partnership with public and private agencies that have experience with programs involving beneficiaries of the Supplemental Nutrition Assistance Program. Finally, DOA believes that this permanent program should not be placed within its department. The Department of Human Services and Department of Health submitted comments deferring to DOA as to the program's development and implementation.

Should your Committee on Finance deliberate on this matter, your Committee on Agriculture respectfully requests that it consider appropriating $1,000,000 for each year of fiscal biennium 2019-2021 for the administration of and matching funds for the Local Healthy Food Incentive Program.

As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 262, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 262, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Agriculture,

____________________________

RICHARD P. CREAGAN, Chair