STAND. COM. REP. NO. 174

Honolulu, Hawaii

, 2023

RE: H.B. No. 520

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred H.B. No. 520 entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

The purpose of this measure is to establish the Access to Local Food Act to allow cottage food operations to sell cottage food products, under certain conditions, upon receiving a permit from the Department of Health.

Your Committee received testimony in support of this measure from the Hawai‘i Farmers Union United. Your Committee received testimony in opposition to this measure from the Department of Health. Your Committee received comments on this measure from the Department of the Attorney General, Department of Agriculture, Hawai‘i Farm Bureau, and Grassroot Institute of Hawaii.

Your Committee finds that local food production is integral to the State's economic development and food security. Your Committee further finds that homemade food that is sold directly to consumers, or "cottage food", is a small but growing industry that can help the State improve economic development and food security. Allowing for cottage food operations would help small and startup businesses, particularly in rural areas, to produce and deliver innovative cottage foods to markets. Additionally, the local economy may be invigorated by cottage food operations through the direct sale of cottage food to consumers, regional food hubs, and farmers' markets.

Your Committee notes that Hawaii is one of only a few states that does not provide exemptions from health regulations for cottage foods. This measure provides exemptions for cottage food operations from certain Department of Health regulations to ensure the continued growth and productivity of the cottage food industry.

Your Committee has amended this measure by:

(1) Changing its effective date to June 30, 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 Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 520, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 520, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Economic Development,

____________________________

DANIEL HOLT, Chair