STAND. COM. REP. NO.  1098-16

Honolulu, Hawaii

                , 2016

RE:   S.B. No. 2659

      S.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred S.B. No. 2659, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO INDUSTRIAL HEMP,"

begs leave to report as follows:

The purpose of this measure is to determine the feasibility of industrial hemp farming in Hawaii by:

(1)  Establishing an Industrial Hemp Pilot Program (Pilot Program) that allows for the cultivation of industrial hemp and the distribution of its seed in Hawaii, which includes qualifying licensees acting as limited agents of the Board of Agriculture;

(2)  Exempting the possession, cultivation, sale, receipt, or transfer of industrial hemp from the offenses related to drugs and intoxicating compounds; and

(3)  Appropriating funds for a full-time equivalent position in the Department of Agriculture to effectuate the Pilot Program.

The Hawaii Farm Bureau, Mahealani Farms Inc., Kokolulu Farm & Cancer Retreats Inc., Ka‘u Specialty LLC, Kihei Community Association, Maui Hemp Institute for Research and Innovation, Nellie's Rentals, We Are One, Inc., Hffuu, MHI, and numerous concerned individuals supported this measure.  The Department of Agriculture supported the intent of this measure.  Alexander & Baldwin, Inc. submitted comments on this measure.

     Should the Committees on Judiciary and Finance deliberate on this measure, your Committee on Agriculture respectfully requests that:

     (1)  The Committees on Judiciary and Finance examine and evaluate the merits of the proposed revisions to this bill submitted by Alexander & Baldwin, Inc.;

     (2)  The Committee on Judiciary examine the legal implications to the State by its participation in the Pilot Program; and

     (3)  The Committee on Finance consider appropriating $550,000 for one full-time equivalent position in the Department of Agriculture to effectuate the Pilot Program.

     As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2659, S.D. 2, and recommends that it pass Second Reading and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Agriculture,

____________________________

CLIFT TSUJI, Chair