STAND. COM. REP. NO. 681

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 773

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 773, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to facilitate the implementation of an industrial hemp pilot program in the State.

 

More specifically, the measure prepares for the implementation of the industrial hemp pilot program established within the Department of Agriculture by:

 

     (1)  Establishing an industrial hemp special fund to carry out the purposes of the pilot program;

 

     (2)  Providing that for the effective period of a license issued under the pilot program:

 

          (A)  The cultivation of industrial hemp or industrial hemp cultivated for the purposes of the pilot program shall qualify as an agricultural product, use, and activity by the relevant county; and

 

          (B)  Any agricultural land used for the 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 or other calculation provided for by ordinance;

 

     (3)  Limiting the cultivation of industrial hemp to licensed owners, lessees, or occupiers of lands within the state agricultural land use district; and

 

     (4)  Appropriating out of the general revenues of the State of Hawaii $258,298 for fiscal year 2017-2018 and $324,796 for fiscal year 2018-2019 to fund one full-time equivalent (1.0 FTE) program coordinator position and one full-time equivalent (1.0 FTE) inspector position within the Department of Agriculture for the pilot program.

 

     The Department of Agriculture and Kihei Community Association submitted written comments in support of this measure.

 

     The Department of Budget and Finance submitted written comments on this measure.

 

     Your Committee finds that that Act 228, Session Laws of Hawaii 2016, established an industrial hemp pilot program to authorize 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.  Your Committee further finds that although the industrial hemp pilot program has been developing administrative rules, the provisions of this measure would facilitate the program's commencement.

 

     Your Committee has amended this measure by:

 

     (1)  Replacing the amounts appropriated with unspecified sums;

 

     (2)  Replacing the number of funded positions with unspecified numbers; and

 

     (3)  Changing its effective date to March 9, 2092, for the majority of the measure and to July 1, 2092, for section 4, to facilitate further discussion.

 

     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 S.B. No. 773, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 773, S.D. 2.

 

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

 

 

 

________________________________

JILL N. TOKUDA, Chair