STAND. COM. REP. NO. 2773

Honolulu, Hawaii

RE: S.B. No. 2595

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 S.B. No. 2595, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION,"

begs leave to report as follows:

The purpose and intent of this measure is to ensure fiscally sound management of certain public agricultural lands while promoting local agricultural interests.

More specifically, this measure:

(1) Requires the Agribusiness Development Corporation to charge market rates to lease, license, rent, encumber, or otherwise dispose of real property;

(2) Exempts from that requirement providers of fresh local agricultural products to the Department of Education, and partner members of the Food and Product Innovation Network; and

(3) Establishes requirements for appraisals to determine the market rate.

Your Committee received written comments in support of this measure from the Agribusiness Development Corporation and Hawaii Farm Bureau.

Your Committee received written comments on this measure from the Hawaii Farmers Union and one individual.

Your Committee finds that the Agribusiness Development Corporation strives to acquire and manage agricultural lands in a fiscally responsible manner while serving broader policy goals related to food security, workforce development, and sustainability. Requiring market rates for the use of public agricultural lands provides transparency, accountability, and consistency in land management and the targeted exceptions to promote statewide food security and sustainability goals.

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. 2595, 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