STAND. COM. REP. NO. 1414

Honolulu, Hawaii

, 2023

RE: S.B. No. 637

S.D. 1

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 S.B. No. 637, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEMP,"

begs leave to report as follows:

The purpose of this measure is to require persons applying to register as hemp processors to include with their application form documentation that the indoor facility and planned hemp processing operation:

(1) Does not include heat or volatile compounds or gases under pressure, such as cold-water extraction; and

(2) Is exempt from building permit and building code requirements pursuant to section 46-88, Hawaii Revised Statutes, or is in a food hub or agricultural park.

Your Committee received testimony in support of this measure from the Hawai‘i Farm Bureau, Hawai‘i Farmers Union United, Hawai‘i Hemp Farmers Association, Hawai‘i Sustainable Farms, Ho‘ola Veteran Services, and eight individuals. Your Committee received comments on this measure from the Department of Agriculture and Department of Health.

Your Committee finds that Act 14, Session Laws of Hawaii 2022, required hemp and hemp products to be processed within an enclosed indoor facility secured to prevent unauthorized entry. Before this law was enacted, your Committee understands that some hemp producers processed small batches of hemp on their farms in structures that were exempt from certain building permit and building code requirements with no adverse consequences. To assist Hawaii's nascent hemp industry, your Committee finds that hemp producers should again enjoy similar flexibility in the types of facilities in which they may process hemp.

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 S.B. No. 637, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 637, S.D. 1, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

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

____________________________

CEDRIC ASUEGA GATES, Chair