STAND. COM. REP. NO. 2776

Honolulu, Hawaii

RE: S.B. No. 2500

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2500, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO VALUE-ADDED PRODUCTS,"

begs leave to report as follows:

The purpose and intent of this measure is to help the State meet its agricultural and economic diversification goals.

More specifically, this measure:

(1) Establishes a food and product innovation network within the Agribusiness Development Corporation; and

(2) Appropriates moneys for the food and product innovation network.

Your Committee received written comments in support of this measure from the Department of Business, Economic Development, and Tourism; Agribusiness Development Corporation; University of Hawaii; Hawaii Food Industry Association; Hawaii Farmers Union; Ulupono Initiative; Hawaii Farm Bureau; Hawaii Forest Industry Association; Chamber of Commerce Hawaii; and Maui Chamber of Commerce.

Your Committee finds that establishing a food and product innovation network will help the State meet its agricultural and economic diversification goals. Your Committee recognizes that product research and development is risky and requires up-front capital, which often discourages emerging agribusinesses and entrepreneurs from exploring new markets. Your Committee believes that establishing a food and product innovation network will decrease the risk of investment for growing businesses and accelerate their efforts in developing new products to promote food resiliency and Hawaii's export marketing.

Your Committee has amended this measure by:

(1) Clarifying the duties of the food and product innovation network;

(2) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(3) 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 Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2500, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2500, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair