STAND. COM. REP. NO. 191

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 773

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committees on Agriculture and Environment and Public Safety, Intergovernmental, and Military Affairs, to which was referred S.B. No. 773 entitled:

 

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to:

 

     (1)  Establish an industrial hemp special fund to carry out the purposes of the industrial hemp pilot program by the Department of Agriculture;

 

     (2)  Require each county to recognize the cultivation of industrial hemp or industrial hemp cultivated for the purposes of the pilot program as an agricultural product, use, and activity;

 

     (3)  Specify that any agricultural land used for cultivation of industrial hemp for the purposes of the pilot program shall qualify for the minimum dedication period and be assessed at the lowest percentage of fair market value; and

 

     (4)  Limit the cultivation of industrial hemp to licensed owners, lessees, or occupiers of lands within the state agricultural land use district.

 

     Your Committees received testimony in support of this measure from the Department of Agriculture and one individual.  Your Committees received comments on this measure from the Department of Budget and Finance.

 

     Your Committees find that Act 228, Session Laws of Hawaii 2016, established the industrial hemp pilot program to allow the cultivation of industrial hemp and distribution of its seed in Hawaii through limited activities by licensee-agents of the Board of Agriculture for purposes of agricultural or academic research.  To ensure successful implementation, further amendments to state law need to be made.

 

     Your Committees have amended this measure by:

 

     (1)  Adding the contents of section 2 of S.B. No. 226, S.D. 1, Regular Session of 2016, which makes an appropriation for a program coordinator position and inspector position within the Department of Agriculture and program operations for the industrial hemp program;

 

     (2)  Making the appropriation effective on July 1, 2017; and

 

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the records of votes of the members of your Committees on Agriculture and Environment and Public Safety, Intergovernmental, and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 773, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 773, 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 Public Safety, Intergovernmental, and Military Affairs,

 

________________________________

CLARENCE K. NISHIHARA, Chair

 

________________________________

MIKE GABBARD, Chair