Honolulu, Hawaii



RE:    H.B. No. 507

       H.D. 1

       S.D. 1




Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii




     Your Committees on Energy and Environment and Agriculture, to which was referred H.B. No. 507, H.D. 1, entitled:




beg leave to report as follows:


     The purpose and intent of this measure is to appropriate funds to the Department of Agriculture to, in cooperation with the University of Hawaii College of Tropical Agriculture and Human Resources, research and develop methods for the prevention and treatment of macadamia felted coccid.


     Your Committees received testimony in support of this measure from the Department of Agriculture; Chamber of Commerce Hawaii; Maui Chamber of Commerce; Maui County Farm Bureau; Hawaii Farm Bureau; Land Use Research Foundation of Hawaii; Hawaii Macadamia Nut Association; Royal Hawaiian Orchards LP.; and five individuals.


     Your Committees find that macadamia nuts are among the top five grossing agricultural commodities in Hawaii.  The State harvested an estimated forty-four million pounds in macadamia nut crop for the 2012-2013 crop year.  The estimated farm value of macadamia nuts for that same year is $35,200,000.  In March 2005, the macadamia felted coccid was discovered on macadamia nut trees in south Kona, and infestations of macadamia felted coccid have now spread from south Kona to the Pahala area.  This insect can cause severe damage to macadamia nut trees when uncontrolled, and the macadamia felted coccid has the potential to spread to other regions and counties of Hawaii if uncontrolled and devastate the macadamia nut industry.  The implementation of this measure will assist in combating this insidious pest and protecting the health of the macadamia nut industry that is vital to the State.


     Your Committees have amended this measure by:


     (1)  Inserting an effective date of July 1, 2015; and


     (2)  Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.


     As affirmed by the records of votes of the members of your Committees on Energy and Environment and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 507, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 507, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.


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