CONFERENCE COMMITTEE REP. NO. 62

Honolulu, Hawaii

, 2023

RE: S.B. No. 637

S.D. 1

H.D. 2

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 637, S.D. 1, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HEMP,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to require persons applying to register as hemp processors to include with their application documentation that the processing does not include heat or volatile compounds or gases under pressure, such as cold-water extraction and is exempt from certain building permit and building code requirements, or documentation that the planned hemp processing operation is in a food hub or agricultural park.

Your Committee on Conference finds that prior to 2021, hemp producers in the State processed small batches of hemp on their farms in structures that were exempt from certain building permit and building code requirements without adverse consequence. However, Act 14, Session Laws of Hawaii 2022, required hemp and hemp products to be processed within an enclosed indoor facility to prevent unauthorized entry, requiring hemp farmers to rely on off-site hemp processing, which has created additional processing and shipping costs while diminishing the overall quality of transported hemp crops. Therefore, the intent of this measure is to allow licensed hemp farmers to once again process hemp on their farms in agricultural structures and in food hubs and agricultural parks.

Your Committee on Conference has amended this measure by making it effective upon its approval.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 637, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 637, S.D. 1, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ CEDRIC ASUEGA GATES Co-Chair	____________________________ MIKE GABBARD Chair
____________________________ MARK M. NAKASHIMA Co-Chair	____________________________ KARL RHOADS Co-Chair