STAND. COM. REP. NO. 2500

 

Honolulu, Hawaii

                   

 

RE:     S.B. No. 3233

        S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

 

Sir:

 

     Your Committees on Agriculture and Environment and Government Operations, to which was referred S.B. No. 3233 entitled:

 

"A BILL FOR AN ACT RELATING TO AGRICULTURAL WORKFORCE HOUSING,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to:

 

     (1)  Require state agencies, including the Department of Agriculture and Biosecurity and Agribusiness Development Corporation, that administer agricultural leases, licenses, development programs, or procurement involving agricultural products to award points or preferences to agricultural projects incorporating agricultural workforce housing; and

 

     (2)  Require a report to the Legislature.

 

     Your Committees received testimony in support of this measure from the Office of Planning and Sustainable Development, Agribusiness Development Corporation, Hawaiʻi Farm Bureau, Chamber of Commerce Hawaii, Hawaiʻi Food+ Policy, and one individual.

 

     Your Committees received comments on this measure from the State Procurement Office and Hawaiʻi Farmers Union United.

 

     Your Committees find that agriculture across the State, particularly on the neighbor islands, faces persistent labor shortages driven in part by limited and high-cost housing options that make it difficult to recruit and retain workers.  Without reliable and proximate housing, farms struggle to maintain stable operations, expand production, or meet institutional and local food demand.  By prioritizing agricultural projects that include dedicated agricultural worker housing, this measure seeks to protect the State's food security and ensure continuity in food production.

 

     Your Committees acknowledge the concerns raised in testimony by the State Procurement Office that providing preference to agricultural projects that provide workforce housing may lead to reduced economic competition.  Your Committees further acknowledge the concerns raised in testimony by the Hawaii Farmers Union United that the preferential scoring system, as currently proposed, could lock out small-scale producers from accessing state agricultural leases.  Therefore, amendments to this measure are necessary to address these concerns.

 

     Your Committees have amended this measure by:

 

     (1)  Specifying that all procurement involving agricultural products shall be conducted in accordance with the structured competitive procedures required by the Hawaii Public Procurement Code governing competitive sealed bidding and competitive sealed proposals;

 

     (2)  Inserting language that outlines the scoring rubric for a state agency to award additional points or preferences;

 

     (3)  Specifying that any procurement conducted for an agricultural project shall be in accordance with the Hawaii Public Procurement Code governing competitive sealed bidding and competitive sealed proposals; and

 

     (4)  Inserting an effective date of July 1, 2050, to encourage further discussion.

 

     As affirmed by the records of votes of the members of your Committees on Agriculture and Environment and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3233, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3233, S.D. 1, and be referred to your Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Agriculture and Environment and Government Operations,

 

________________________________

ANGUS L.K. MCKELVEY, Chair

 

________________________________

MIKE GABBARD, Chair