STAND. COM. REP. NO. 2120-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2102

S.D. 2

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 2102, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INDUSTRIAL HEMP,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Beginning July 1, 2026, authorize the use of hemp or hemp-derived feed ingredients in commercial feed for pets, specialty pets, and horses; and

(2) Require the Department of Agriculture and Biosecurity to initiate rulemaking regarding the use of hemp-derived feed ingredients in certain commercial animal feeds by December 31, 2026.

Your Committee received testimony in support of this measure from Hawaiʻi Sustainable Farms; Hawaiʻi Farm Bureau; and five individuals. Your Committee received comments on this measure from the Department of Agriculture and Biosecurity and Department of Health.

Your Committee finds that expanding lawful markets for industrial hemp supports agricultural diversification and economic development in the State. Your Committee further finds that authorizing the regulated use of hemp-derived feed ingredients, subject to appropriate rulemaking by the Department of Agriculture and Biosecurity, provides clarity for producers while maintaining safeguards for animal health and feed safety. This measure allows the incorporation of hemp-derived feed ingredients into commercial feed, which will promote innovation in agriculture, align State policy with evolving federal standards, and support the continued viability of Hawaii's farming and livestock sectors.

Your Committee has amended this measure by:

(1) Deleting language that would have specified that the use of hemp or hemp-derived feed ingredients in commercial feed is authorized for pets, specialty pets, and horses;

(2) Requiring each hemp or hemp-derived feed ingredient to be approved by the United States Food and Drug Administration for its intended use in commercial feed for livestock; and

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

Your Committee notes that the Department of Agriculture and Biosecurity has requested a dedicated Feeds Specialist position (ACMS-V, SR-24, Step F) and $82,968 for the position to fulfill the regulatory responsibilities required by this measure.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2102, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2102, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

SCOT Z. MATAYOSHI, Chair