STAND. COM. REP. NO. 3224

Honolulu, Hawaii

RE: H.B. No. 2246

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred H.B. No. 2246, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Create an Agricultural Grant Program and Revolving Fund for the purposes of grant application, execution, reporting, and auditing to be administered by the Department of Agriculture and Biosecurity; and

(2) Appropriate funds out of the Agricultural Grant Revolving Fund.

Your Committee received testimony in support of this measure from the Department of Agriculture and Biosecurity; Hawaiʻi Farm Bureau; Local Food Coalition; Hawaii Cattlemen's Council, Inc.; Hawaiʻi Alliance for Progressive Action; and twenty individuals.

Your Committee finds that federal agricultural grants are a critical source of funding for the State's farmers and ranchers, supporting research, infrastructure, value-added production, food systems development, and on-the-ground implementation of agricultural programs. However, limited administrative capacity and rigid funding structures can constrain the State's ability to fully leverage these opportunities. Your Committee further finds that allowing the Department of Agriculture and Biosecurity to retain and reinvest certain federal indirect cost reimbursements will strengthen the Department's capacity to pursue additional grants and further support grant development, execution, compliance, and auditing. This measure therefore supports the long-term growth, resilience, and sustainability of the State's agricultural industry.

Your Committee has amended this measure by 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 H.B. No. 2246, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2246, H.D. 1, 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,

________________________________

MIKE GABBARD, Chair