Honolulu, Hawaii



RE:    H.B. No. 2304

       H.D. 1

       S.D. 1




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii




     Your Committee on Ways and Means, to which was referred H.B. No. 2304, H.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to establish the industrial hemp special fund within the Department of Agriculture to deposit fees and expend funds necessary for the industrial hemp pilot program.


     For purposes of a public hearing, your Committee circulated a proposed S.D. 1 (Proposed Draft) of the measure and notified the public that your Committee would be accepting testimony on the Proposed Draft, which amends the measure by deleting the existing provisions and replacing its contents with provisions to appropriate funds to the Department of Agriculture for capital improvement projects for the benefit of East Maui.


     Your Committee received testimony in support of the Proposed Draft from the Department of Agriculture, Hawaii Farm Bureau Federation, Oahu County Committee on Legislative Priorities of the Democratic Party of Hawai`i, and Hawaii Cattlemen's Council,


     Your Committee received testimony in opposition to the Proposed Draft from the League of Women Voters of Hawaii.


     Your Committee finds that the funding provided by this measure will restore irrigation systems that have fallen into disrepair since the demise of plantation operations, thereby allowing for the continuation of agricultural operations critical for self-sufficiency and sustainability.


     Your Committee has amended this measure by adopting the Proposed Draft with the following additional amendments:


     (1)  Changing all amounts appropriated to unspecified sums; and


     (2)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.


     Should this measure go to Conference, your Committee respectfully requests that the Conference Committee consider appropriating the following amounts for the projects listed in this measure:


     (1)  For the plans, design, and construction for irrigation and water delivery systems for agricultural enterprises and/or agricultural purposes in East Maui:


          (A)  $1,000 for plans;


          (B)  $1,000 for design; and


          (C)  $1,498,000 for construction; and


     (2)  For the plans, design, and construction for water systems in East Maui:


          (A)  $500,000 for plans;


          (B)  $500,000 for design; and


          (C)  $2,000,000 for construction.


     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 H.B. No. 2304, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2304, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.



Respectfully submitted on behalf of the members of the Committee on Ways and Means,