STAND. COM. REP. NO. 2488

Honolulu, Hawaii

RE: S.B. No. 3162

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 S.B. No. 3162 entitled:

"A BILL FOR AN ACT RELATING TO STRATEGIC FOOD RESERVES,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Hawaii Strategic Food Reserves Program within the Department of Agriculture and Biosecurity;

(2) Establish purchasing requirements for crops stored at a strategic food reserve;

(3) Establish the Strategic Food Reserves Advisory Committee;

(4) Establish the Agricultural Market Development Grant Program;

(5) Establish the Hawaii Strategic Food Reserves Program Special Fund;

(6) Require Department of Agriculture and Biosecurity and the Strategic Food Reserves Advisory Committee to submit annual reports to the Legislature, respectively;

(7) Establish a timeline for the Department of Agriculture and Biosecurity's implementation of the Hawaii Strategic Food Reserves Program; and

(8) Appropriate funds.

Your Committee received testimony in support of this measure from the Department of Agriculture and Biosecurity; Hawaiʻi Farm Bureau; Hawaiʻi Farmers Union United; Hawaii Food Industry Association; Hawaii Cattlemen's Council, Inc.; Think B.I.G. Hawaiʻi; Green Party of Hawaiʻi; and six individuals.

Your Committee received comments on this measure from the Department of the Attorney General.

Your Committee finds that the State is uniquely vulnerable to supply chain disruptions, such as pandemics or extreme weather events, due to a heavy reliance on food importation. In the event of a major natural disaster, port closure, economic disruption, or geopolitical crisis, the State's communities could face immediate and severe consequences. Your Committee further finds that working with local food producers, manufacturers, suppliers, distributors, and retailers before a disaster strikes is an essential component to statewide preparedness. This measure will support local agricultural producers and provide a crucial supply chain stopgap by providing each island with strategic food reserves.

Your Committee acknowledges the concerns raised in testimony by the Department of the Attorney General that, pursuant to the Hawaii State Constitution, this measure requires language establishing appropriate standards for state agencies to issue grants. Therefore, amendments to this measure are necessary to address these concerns.

Accordingly, your Committee has amended this measure by:

(1) Clarifying that the Strategic Food Reserves Advisory Committee members representing small-scale diversified farmers, the Native Hawaiian farming community, and the local food processing sector shall be invited by the Chairperson of the Board of Agriculture and Biosecurity;

(2) Inserting language establishing appropriate standards for the Department of Agriculture and Biosecurity to issue grants to support strategic food reserves in the State under the Agriculture Market Development Grant Program;

(3) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(4) 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 S.B. No. 3162, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3162, 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,

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MIKE GABBARD, Chair