STAND. COM. REP. NO. 324-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1707

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Agriculture & Food Systems, to which was referred H.B. No. 1707 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish a Local Agriculture Transportation Cost Reimbursement Program within the Department of Agriculture and Biosecurity to reimburse eligible ranchers and farmers a portion of their costs to transport livestock, livestock products, agricultural commodities, and certain supplies, under certain conditions;

(2) Establish a position to administer the Program; and

(3) Appropriate funds for the Program and position.

Your Committee received testimony in support of this measure from the Hawaii Cattlemen's Council, Inc.; Young Brothers, LLC; Hawaii Food Industry Association; Hawaiʻi Farm Bureau; Local Food Coalition; Maui County Farm Bureau; Hilo County Farm Bureau; Native Nursery, LLC; Hawaiʻi Food+ Policy; and eight individuals.

Your Committee finds that increasing local agricultural production is vital for Hawaii's long-term sustainability and food security; however, high transportation costs pose major challenges for local agricultural producers to transport their products and supplies. Your Committee further finds that to successfully increase local food production, the establishment of a cost reimbursement program that offsets the increased transportation costs of agricultural producers is essential to ensure growth in the agricultural sector.

Your Committee has amended this measure by:

(1) Clarifying that to be eligible to receive reimbursement payments, an agricultural producer that is a start-up or small-scale farmer must provide proof of commercial intent, rather than demonstrate commercial intent;

(2) Changing the effective date to July 1, 3000, to encourage further discussion; 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 Agriculture & Food Systems that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1707, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1707, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

CORY CHUN, Chair