STAND. COM. REP. NO. 168

Honolulu, Hawaii

RE: S.B. No. 1456

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. 1456 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO HONOKAA LAND COMPANY, LLC,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the issuance of special purpose revenue bonds to assist Honoka‘a Land Company, LLC, with acquiring, developing, and renovating agricultural facilities.

Your Committee received testimony in support of this measure from the Department of Agriculture and one individual. Your Committee received comments on this measure from the Department of Budget and Finance and Department of the Attorney General.

Your Committee finds that establishing a flourishing and self-reliant agriculture sector in Hawaii is in the interest of the public and the State. Your Committee acknowledges that the Honoka‘a Land Company, LLC, has several agricultural initiatives in need of funding that can benefit Hawaii's agricultural sector. Among these include the rebuilding of structures for a soil and earth products business based at Haina Mill that markets an array of agricultural soil amendment products. Fertilizer costs have doubled over the years, and these types of products are highly sought after locally, since shipments from the mainland and elsewhere can take a long time to arrive and farmers are bound by stringent planting schedules. Furthermore, Honoka‘a Land Company, LLC, has a plan to develop and construct workforce housing for its laborers as well as in other agricultural regions in Hawaii, which is also desperately desired by local farmers. Other initiatives include the purchase of an agriculture consulting and research development firm and farm to serve as a research and development facility and the acquiring or building of organic dairies and green and renewable energy facilities. Thus, this measure authorizes the issuance of special purpose revenue bonds to assist Honoka‘a Land Company, LLC, with acquiring, developing, and renovating various facilities that will ultimately benefit and support the State's agricultural sector.

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. 1456 and recommends that it pass Second Reading 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