STAND. COM. REP. NO. 252

Honolulu, Hawaii

RE: S.B. No. 662

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred S.B. No. 662 entitled:

"A BILL FOR AN ACT RELATING TO CAPITAL IMPROVEMENT PROJECTS FOR THE BENEFIT OF THE HONALO MARSHALLING YARD,"

begs leave to report as follows:

The purpose and intent of this measure is to appropriate funds for a capital improvement project for the Honalo Marshalling Yard.

Your Committee received testimony in support of this measure from the Department of Agriculture; Department of Research and Development of the County of Hawai‘i; Hawai‘i ‘Ulu Cooperative; Ulupono Initiative; Farm Link Hawaii; OK Farms, LLC; Island Harvest, Inc.; Hawai‘i Farmers Union United; Food+ Policy Internship 2023; Ka Ohana O Na Pua; Watson-Kabei Coffee Estate; Hawai‘i Farm Bureau; and fifteen individuals.

Your Committee finds that the state-owned Honalo Marshalling Yard is currently leased by the Kona Producers Cooperative and Hawai‘i Ulu Cooperative through the Department of Agriculture. The facility processes ulu, also known as breadfruit, and secondary crops like sweet potato. Your Committee recognizes that the Honalo Marshalling Yard is in need of vital infrastructure improvements to support the operations of its current lessees. Thus, this measure will support upgrades of the infrastructure at Honalo Marshalling Yard, which will increase the aggregation, processing, and storage manufacturing capacity from 350,000 pounds to 2,000,000 pounds of ulu per year, thereby supporting Hawaii's agriculture sector and enhancing food security in the State.

Your Committee acknowledges the recommendation raised in testimony by the Department of Agriculture, to include a construction cost element in the capital improvement project financing language. They additionally note that the construction cost element is necessary to support the construction of the facility improvements and increase the production of the capacity of the facility.

Your Committee has amended this measure by:

(1) Including the English name for ulu, breadfruit, in the preamble for readability purposes; and

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

As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 662, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 662, S.D. 1, and be referred to your Committee on Ways and Means.

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

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MIKE GABBARD, Chair