STAND. COM. REP. NO. 2694

Honolulu, Hawaii

RE: S.B. No. 3260

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Government Operations and Agriculture and Environment, to which was referred S.B. No. 3260 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

beg leave to report as follows:

The purpose and intent of this measure is to require that, by an unspecified date, one hundred percent of the food purchased by certain state departments consist of fresh local agricultural products and local value-added, processed, agricultural, or food products.

Your Committees received testimony in support of this measure from the Agribusiness Development Corporation; Hawaiʻi Farm Bureau; Hawaii Cattlemen's Council, Inc.; Hawaiʻi Food+ Policy; and three individuals.

Your Committees received testimony in opposition to this measure from the Department of Corrections and Rehabilitation.

Your Committees received comments on this measure from the Department of Agriculture and Department of Education.

Your Committees find that supporting local businesses and encouraging the production and use of local agricultural products are a matter of statewide concern. According to testimony received by your Committees, this measure focuses on creating new markets and revenue streams for local producers, which helps them maintain and create jobs and expand and invest in their agribusiness by securing large institutional contracts. However, your Committees acknowledge the concerns raised by numerous testifiers that various food products are either not available, of insufficient quantity, or are too cost-prohibitive to be procured. Accordingly, this measure needs to be amended to address this issue.

Your Committees have amended this measure by:

(1) Requiring that, by January 1, 2112, one hundred percent of the food purchased by certain state departments consist of fresh local agricultural products and local value-added, processed, agricultural, or food products;

(2) Inserting language that requires the Department of Agriculture to consider substitutes and new technology that would assist certain state departments to meet the benchmarks on purchasing fresh local agricultural products and local value-added, processed, agricultural, or food products; and

(3) Inserting an effective date of July 1, 2112, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Government Operations and Agriculture and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3260, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3260, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Government Operations and Agriculture and Environment,

________________________________ MIKE GABBARD, Chair

________________________________ ANGUS L.K. MCKELVEY, Chair