STAND. COM. REP. NO. 323-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2246

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. 2246 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURAL GRANT ADMINISTRATION,"

begs leave to report as follows:

The purpose of this measure is to establish:

(1) An Agricultural Grant Program to search for, apply for, and administer federal agricultural grant opportunities for the benefit of the Hawaii agricultural industry; and

(2) An Agricultural Revolving Fund to retain and expend federal grant indirect overhead reimbursements.

Your Committee received testimony in support of this measure from the Department of Agriculture and Biosecurity; Hawaii Fish Company Inc.; Hawaiʻi Food+ Policy; Hawaii Cattlemen's Council, Inc.; Hawaiʻi Farm Bureau; Local Food Coalition; Hawaiʻi Farmers Union United; and one individual.

Your Committee finds that federal agricultural grants are an important resource for Hawaii farmers, ranchers, and processors and provide additional financial support for the agricultural industry. Your Committee further finds that the Department of Agriculture and Biosecurity is actively seeking federal grant opportunities. Many of these federal grants provide for indirect overhead reimbursements or an allowable management fee to reimburse the State for costs associated with the management of certain federal grants. Your Committee believes that the establishment of a formal agricultural grant program and a revolving fund would allow the Department to retain and expend the federal overhead reimbursement monies to seek additional grant opportunities to support the agricultural industry, develop program applications, monitor grant execution, ensure compliance with grant requirements, and audit grant expenditures.

Your Committee has amended this measure by:

(1) Specifying that the Department of Agriculture and Biosecurity is required to submit its annual report to the Legislature no later than twenty days prior to the convening of each regular session;

(2) Inserting language that appropriates an unspecified amount out of the Agricultural Grant Revolving Fund for the Agriculture Grant Program;

(3) Changing the effective date to July 1, 3000, to encourage further discussion; and

(4) 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. 2246, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2246, 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