STAND. COM. REP. NO. 606

Honolulu, Hawaii

RE: S.B. No. 792

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred S.B. No. 792 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose and intent of this measure is to establish and appropriate funds for a local agriculture transportation cost reimbursement incentive program to be administered by the Department of Agriculture to reimburse eligible producers for a portion of the producer's costs to transport agricultural commodities.

Your Committee received testimony in support of this measure from the Department of Agriculture, Hawai‘i Farmers Union United, Kuwale Ridge Farms, Ulupono Initiative, Hawai‘i Farm Bureau, and one individual. Your Committee received testimony in opposition to this measure from Animal Rights Hawai‘i.

Your Committee finds that the impacts of the coronavirus 2019 disease pandemic have uncovered the need to strengthen local food systems and reduce dependence on imported foods to ensure that a reliable stream of affordable and nutritious foods are readily available for all residents. Your Committee additionally finds that the Hawaiian islands face significant challenges when it comes to the transportation of goods, particularly for small and medium-sized farms and food producers in the State. Financial assistance can help increase the profitability and competitiveness of local farmers and ranchers, which is essential to the State's food security and sustainability goals. Thus, this measure establishes a reimbursement program to be administered by the Department of Agriculture to provide local food producers with financial assistance to cover the costs of food transportation in the State.

Your Committee has amended this measure by:

(1) Deleting a reference to the neighbor islands and replacing it with the State with respect to eligible producers;

(2) Deleting proposed language requiring proof that the producer has annual gross receipts totaling $50,000 or more;

(3) Inserting language for reimbursements to cover farmer transportation costs based on tiered total of annual gross income; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 792, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 792, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Agriculture and Environment,

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MIKE GABBARD, Chair