STAND. COM. REP. NO. 1246-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2925

S.D. 1

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 S.B. No. 2925, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO COCONUT TREES,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Recognize coconut trees as a source of food and water and as a cultural treasure;

(2) Authorize the lawful production and banking of viable coconut seeds, subject to rules and standards adopted by the Department of Agriculture and Biosecurity;

(3) Require owners or operators of property where any treated coconut tree is located to post and maintain a sign that clearly indicates that the coconut tree is a landscape palm and not for human consumption;

(4) Require the Department of Agriculture and Biosecurity to establish labeling standards for non-consumable landscape palms; and

(5) Establish an income tax credit for qualified costs to implement natural management of coconut rhinoceros beetles that result in consumable coconut trees.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources; Office of Hawaiian Affairs; Office of the Mayor of the County of Maui; Hawaiʻi Food+ Policy; The Nature Conservancy Hawaiʻi and Palmyra; Hawaiʻi Farmers Union United; Libertarian Party of Hawaii; and two individuals. Your Committee received comments on this measure from the Department of Taxation; Department of Agriculture and Biosecurity; and Hawaiʻi Farm Bureau.

Your Committee finds that Hawaii imports approximately eighty-five to ninety percent of its food, making the State very vulnerable to supply chain disruptions. Your Committee further finds that coconuts are a flexible and nutritious food source, providing coconut water, milk, meat, and oil, which can support local food production and decrease reliance on imports.

Your Committee notes that, with the spread of the coconut rhinoceros beetle threatening coconut tree populations across the State, new approaches are needed to deter the spread of coconut rhinoceros beetles. This measure establishes a tax incentive to encourage the protection of coconut trees through natural management practices of the coconut rhinoceros beetle.

Your Committee has amended this measure by:

(1) Deleting language that would have:

(A) Recognized coconut trees as a source of food and water and as a cultural treasure;

(B) Authorized the lawful production and banking of viable coconut seeds;

(C) Required owners or operators of property where any treated coconut tree is located to post and maintain certain signage; and

(D) Required the Department of Agriculture and Biosecurity to establish labeling standards for non-consumable landscape palms;

(2) Clarifying that the income tax credit for consumable coconut trees maintained through natural management practices is nonrefundable;

(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 S.B. No. 2925, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2925, S.D. 1, H.D. 1, and be referred to your Committee on Economic Development & Technology.

Respectfully submitted on behalf of the members of the Committee on Agriculture & Food Systems,

____________________________

CORY CHUN, Chair