STAND. COM. REP. NO. 3630

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 Ways and Means, to which was referred H.B. No. 2246, H.D. 1, S.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 increase the State's capacity to obtain federal grant funding to support the local agricultural industry.

Specifically, this measure:

(1) Establishes an Agricultural Grant Program within the Department of Agriculture and Biosecurity;

(2) Establishes an agricultural grant revolving fund; and

(3) Appropriates moneys out of the agricultural grant revolving fund to support the Agricultural Grant Program.

Your Committee received written comments in support of this measure from the Department of Agriculture and Biosecurity, Local Food Coalition, Hawaii Farm Bureau, Hawaii Farmers Union, and one individual.

Your Committee finds that many federal grants being pursued by the Department of Agriculture and Biosecurity allow for indirect overhead reimbursements or an allowable management fee to pay for costs associated with grant management. Your Committee further finds that the establishment of a formal Agricultural Grant Program and agricultural grant revolving fund, as provided by this measure, will allow the Department of Agriculture and Biosecurity to retain these funds and to help pay for certain program expenses.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2246, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair