STAND. COM. REP. NO. 2850

Honolulu, Hawaii

RE: S.B. No. 2350

S.D. 2

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 S.B. No. 2350, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose and intent of this measure is to facilitate the growth of the State's agricultural sector.

Specifically, this measure transfers the rights, powers, and duties of the Aquaculture and Livestock Support Services Branch and Agricultural Development Division of the Department of Agriculture and Biosecurity to the Agribusiness Development Corporation, except for the rights, powers, and duties that relate to animal health, biosecurity enforcement, inspections, and permitting compliance.

Your Committee received written comments in support of this measure from Marine Genetics LLC and two individuals.

Your Committee received written comments in opposition to this measure from the Department of Agriculture and Biosecurity, Animal Rights Hawaii, Hawaii Farm Bureau, and Hawaii Cattlemen's Council.

Your Committee received written comments on this measure from the Department of Land and Natural Resources, Agribusiness Development Corporation, and Department of Research and Development of the County of Hawaii.

Your Committee finds that the intent of the reorganization presented by this measure is to strategically realign certain industry development functions by placing them within the Agribusiness Development Corporation to improve administrative efficiency and service delivery. Your Committee further finds that certain regulatory functions should remain within the Department of Agriculture and Biosecurity to maintain stability in aquatic livestock permitting, disease and pest control, and biosecurity oversight.

Accordingly, your Committee has amended this measure by:

(1) Requiring that only the rights, powers, functions, and duties of the Aquaculture and Livestock Support Services Branch of the Department of Agriculture and Biosecurity that relate to agricultural enterprises, as that term is defined in section 141D-2, Hawaii Revised Statutes, shall be transferred to the Agribusiness Development Corporation;

(2) Clarifying that the regulatory functions and authority of the Aquaculture and Livestock Support Services Branch of the Department of Agriculture and Biosecurity shall remain with that Department; and

(3) Deleting language that would have transferred the rights, powers, functions, and duties of the Agricultural Development Division of the Department of Agriculture and Biosecurity to the Agribusiness Development Corporation.

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 S.B. No. 2350, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2350, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair