STAND. COM. REP. NO. 554

Honolulu, Hawaii

, 2023

RE: H.B. No. 976

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 Agriculture & Food Systems, to which was referred H.B. No. 976 entitled:

"A BILL FOR AN ACT RELATING TO HEMP SPECIAL FUND,"

begs leave to report as follows:

The purpose of this measure is to rename the Industrial Hemp Special Fund as the Hemp Special Fund and allow the fund to be utilized for the Department of Agriculture's responsibilities regarding commercial hemp production.

Your Committee received testimony in support of this measure from the Department of Agriculture.

Your Committee finds that Act 228, Session Laws of Hawaii 2016, established the Industrial Hemp Pilot Program to allow the cultivation of industrial hemp and distribution of its seed in the State under the oversight of the Department of Agriculture. Your Committee further finds that Act 14, Session Laws of Hawaii 2020 (Act 14), repealed the Industrial Hemp Pilot Program and replaced it with a hemp processors and commercial hemp production program with bifurcated oversight by the Departments of Agriculture and Health. However, Act 14 did not provide the Department of Agriculture with a special fund to fund its duties, including monitoring the transport of hemp within the State and enforcing restrictions for growing hemp to mitigate impacts on neighbors. This measure repurposes the fund for the Industrial Hemp Pilot Program to be used for the Department of Agriculture's responsibilities under the hemp processors and commercial hemp production program.

Your Committee has amended this measure by:

(1) Changing the 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 Agriculture & Food Systems that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 976, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 976, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Agriculture & Food Systems,

____________________________

CEDRIC ASUEGA GATES, Chair