SB 3162: DAB; College of Tropical Agriculture and Human Resilience; Strategic Food Reserves Advisory Committee; Hawaii Strategic Food Reserves Program; Agricultural Market Development Grant Program; Hawaii Strategic Food Reserves Program Special Fund; Agriculture; Local Produce; Climate Adaptation; Resilience; Supply Chains; Emergency Management; Reports; Appropriation

A BILL FOR AN ACT

RELATING TO STRATEGIC FOOD RESERVES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the State currently imports roughly ninety per cent of its food, creating a significant vulnerability to supply chain disruptions caused by natural disasters, economic crises, or global conflicts.  Recent studies indicate that only twelve per cent of households in the State maintain a recommended two-week emergency food supply.  The legislature further finds that Hawaii county experiences a food insecurity rate of forty per cent, which is the highest rate in the State, demonstrating an urgent need for the improvement of food security measures.

     The legislature also finds that the establishment of a strategic food reserve on each island would provide a crucial buffer during supply chain disruptions and enhance the State's overall resilience.  The legislature additionally finds that integrating local food production into a strategic food reserves system would strengthen local agriculture, create jobs, improve nutrition, and reduce the environmental footprint of the State's food system.  The legislature further finds that establishing guaranteed purchase requirements for locally-grown crops and fruits will help create stable markets for the State's farmers, incentivize local food production, and strengthen the agricultural sector of the State's economy.

     Accordingly, the purpose of this Act is to:

     (1)  Establish the Hawaii strategic food reserves program to facilitate and monitor strategic food reserves on each island of the State;

     (2)  Establish purchasing requirements for locally-grown crops stored at a strategic food reserve;

     (3)  Establish the strategic food reserves advisory committee to advise the implementation of the Hawaii  strategic food reserves program;

     (4)  Require the strategic food reserves advisory committee to submit an annual report to the legislature;

     (5)  Establish the agricultural market development grant program;

     (6)  Establish the Hawaii strategic food reserves program special fund;

     (7)  Require the department of agriculture and biosecurity to submit an annual report to the legislature regarding the progress and effectiveness of the Hawaii strategic food reserves program; and

     (8)  Establish a timeline for the department of agriculture and biosecurity's implementation of strategic food reserves.

     SECTION 2.  Chapter 141, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part     .  Hawaii strategic food reserves PROGRAM

     §141-A  Definitions.  As used in this part:

     "Department" means the department of agriculture and biosecurity.

     "Local food" means agricultural products grown, raised, or produced within the State.

     "Priority crops" means an agricultural product identified by the department as suitable for strategic reserves and cultivation in the State, including but not limited to crops possessing cultural significance, nutritional value, and storage capability.

     "Rotation" means the practice of regularly rotating food stocks to maintain freshness while maintaining required inventory levels.

     §141-B  Hawaii strategic food reserves program; established; functions; purchase requirements.  (a)  There is established within the department a Hawaii strategic food reserves program for the establishment and maintenance of a strategic food reserve on each island of the State.

     (b)  The department shall administer the Hawaii strategic food reserves program in collaboration with:

     (1)  The office of planning and sustainable development;

     (2)  The Hawaii emergency management agency;

     (3)  County emergency agencies; and

     (4)  Other relevant state and county agencies.

     (c)  The department shall:

     (1)  Develop and implement procedures for the acquisition, storage, rotation, and distribution of food for strategic food reserves;

     (2)  Establish minimum nutritional standards for foods stored at a strategic food reserve;

     (3)  Establish procedures for activating and deploying strategic food reserves during an emergency, including cooperation with private food purveyors as necessary to ensure the best prices and expedited delivery of strategic food reserve items during an emergency;

     (4)  Enter into contracts with local agricultural producers, food processors, and distributors for the supply and rotation of strategic food reserve items;

     (5)  Partner with the counties, private sector entities, and nonprofit organizations to support strategic food reserve operations;

     (6)  Coordinate with the Hawaii emergency management agency to integrate strategic food reserves into state and county emergency response plans;

     (7)  Develop training programs for program staff and partner organizations involved in strategic food reserve management and emergency distribution;

     (8)  Establish a transparent inventory management system with regular reporting requirements;

     (9)  Conduct an annual assessment of the capacity, condition, and readiness of each strategic food reserve;

    (10)  Adapt strategic food reserve inventory composition based on changing dietary needs, agricultural production patterns, and emergency management best practices;

    (11)  Establish mandatory local purchase requirements for priority crops according to the following schedule:

          (A)  For crops that are produced in a sufficient quantity in the State, at least sixty per cent of reserve stocks shall be sourced locally;

          (B)  For crops that are of moderate but increasing production in the State, at least forty per cent of reserve stocks shall be sourced locally; provided that at least sixty per cent of these crops shall be sourced locally in       years; and

          (C)  For other crops identified as priority crops that are of limited production in the State, at least twenty per cent of reserve stocks shall be sourced locally; provided that forty per cent of these crops shall be sourced locally in       years;

    (12)  Annually compile and publish a list of priority crops and their respective purchase requirement percentages;

    (13)  Enter into forward contracts with local producers that guarantee purchase of priority crops at fair market prices; provided that each contract shall be for a term of not less than three years and not more than five years;

    (14)  Establish differential pricing structures that may include premium prices for crops grown using sustainable or regenerative practices; and

    (15)  Provide technical assistance to support local producers in meeting food safety, storage, and quality requirements for participation in the Hawaii strategic food reserves program.

     §141-C  Hawaii strategic food reserves program; requirements.  In its management of each strategic food reserve, the department shall:

     (1)  Maintain a three-month supply of essential, non-perishable staple foods for at least twenty-five per cent of the resident population of each island of the State, respectively; provided that, no later than July 1, 2031, each strategic food reserve shall maintain a three-month supply for fifty per cent of the resident population;

     (2)  Include a diverse selection of nutritious, culturally appropriate food items possessing an extended shelf life;

     (3)  Include a minimum of thirty per cent locally-produced food items in its inventory;

     (4)  Be strategically located to ensure accessibility during emergencies, with consideration given to sea level rise, flood zones, and other potential hazards;

     (5)  Operate on a revolving basis, with regular rotation of inventory to maintain freshness and minimize waste;

     (6)  Integrate into existing food distribution networks where appropriate, including partnerships with food banks, grocery retailers, and agricultural producers;

     (7)  Prioritize storable crops that may be cultivated in the State, including but not limited to taro, sweet potato, breadfruit, banana, and papaya; and

     (8)  Support traditional Native Hawaiian food systems and indigenous crop varieties where appropriate.

     §141-D  Strategic food reserves advisory committee; established; duties; annual report.  (a)  There is established within the department, for administrative purposes only, a strategic food reserves advisory committee.  The strategic food reserves advisory committee shall be an advisory body exempt from section 26-34, to advise the department in its implementation of the Hawaii strategic food reserves program.

     (b)  The strategic food reserves advisory committee shall comprise the following members:

     (1)  The chairperson of the board of agriculture and biosecurity or their designee, who shall serve as chairperson of the advisory committee;

     (2)  The administrator of the Hawaii emergency management agency or their designee;

     (3)  One member representing the office of planning and sustainable development;

     (4)  One member representing each county management agency, respectively;

     (5)  One member representing the university of Hawaii at Manoa college of tropical agriculture and human resilience;

     (6)  One member representing a farm organization that represents small-scale diversified farmers, to be invited by the chairperson of the board of agriculture and biosecurity;

     (7)  One member representing the Native Hawaiian farming community with knowledge of traditional crop systems, to be invited by the chairperson of the board of agriculture and biosecurity;

     (8)  One member representing the food processing sector with expertise in the preservation methods of tropical crops, to be invited by the chairperson of the board of agriculture and biosecurity;

     (9)  Two members representing the local agricultural production center, to be appointed by the governor;

    (10)  One member representing the food distribution industry, to be appointed by the governor;

    (11)  One member with expertise in nutrition or public health, to be appointed by the governor; and

    (12)  One member with expertise in food storage and preservation, to be appointed by the governor.

     (c)  The advisory committee shall:

     (1)  Provide recommendations on the types and quantities of food to be included in each strategic food reserve;

     (2)  Advise on storage and rotation procedures to maximize the shelf life of food and minimize waste;

     (3)  Review and provide input on distribution plans for an emergency situation;

     (4)  Identify opportunities to increase the percentage of locally-produced food in each strategic food reserve;

     (5)  Monitor program effectiveness and recommend improvements;

     (6)  Recommend adjustments to local purchase percentages based on current agricultural production capacity;

     (7)  Identify any barriers to increasing local production of priority crops and recommend solutions;

     (8)  Develop strategies to assist small- and mid-sized farms with Hawaii strategic food reserves program participation; and

     (9)  Review pricing structures to ensure fair compensation for farmers participating in the Hawaii strategic food reserves program while maintaining program sustainability.

     (d)  The strategic food reserves advisory committee shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature at least twenty days prior to the convening of each regular session.  The report shall detail the status of each strategic food reserve, including inventory levels, rotation activities, challenges, and recommendations.

     (e)  The strategic food reserves advisory committee shall meet at least once per quarter to review the status of the Hawaii strategic food reserves program and address any emerging issues.

     §141-E  Agricultural market development grant program; functions.  (a)  The department shall establish and administer an agricultural market development grant program to support strategic food reserves in the State.  The agricultural market development grant program shall:

     (1)  Identify crops that are currently imported that could feasibly be grown in the State for inclusion on the list of priority crops;

     (2)  Collaborate with the university of Hawaii college of agriculture and human resilience to develop improved varieties of storable crops suitable for the State's growing conditions;

     (3)  Provide grants to farmers for infrastructure, equipment, and training necessary for the production of priority crops;

     (4)  Establish processing facilities for converting perishable local produce into shelf-stable forms suitable for storage at a strategic food reserve;

     (5)  Develop seed systems to ensure that any locally adapted crop variety remains available to farmers in the State;

     (6)  Establish a certification program for products meeting program standards;

     (7)  Establish an economic modeling tool to determine fair prices for forward contracts that ensure farmer profitability while maintaining program stability; and

     (8)  Coordinate with existing agriculture development programs to align incentives and resources toward increasing the production of priority crops.

     (b)  Applications for grants shall be made to the department and contain the information as shall be required by rules adopted to administer the grant program.  At a minimum, the applicant shall:

     (1)  Be licensed or accredited, in accordance with federal, state, or county statutes, rules, or ordinances, to conduct the activities or provide the services for which a grant is awarded;

     (2)  Provide a detailed plan outlining the scope, objectives, and projected impact of the project or projects, including a clear breakdown of how grant funds will be expended;

     (3)  Agree to use state funds exclusively for the purposes of this program;

     (4)  Demonstrate the capability and capacity to properly carry out the proposed project and properly administer grant funds; provided that the department shall prescribe the applicant qualifications for each grant;

     (5)  Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;

     (6)  Agree not to use state funds for purposes of entertainment or perquisites;

     (7)  Comply with any additional requirements prescribed by the department;

     (8)  Comply with all applicable federal, state, and county statutes, rules, and ordinances;

     (9)  Agree to indemnify and hold harmless the State and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with grant funds provided hereunder and procure sufficient insurance to provide this indemnification if requested to do so by the department; and

    (10)  Agree to make available to the department all records the applicant may have relating to the grant, to allow state agencies to monitor the applicant's compliance with this section.

     §141-F  Hawaii strategic food reserves program special fund; permitted uses.  (a)  There is established within the state treasury the Hawaii strategic food reserves program special fund, into which shall be deposited the following:

     (1)  Appropriations made by the legislature;

     (2)  Grants, donations, and contributions from a public or private entity;

     (3)  Revenues generated from the sale of aged inventory through the rotation process;

     (4)  Federal grants for food security programs;

     (5)  Interest accrued on the balance of the fund; and

     (6)  Any other revenues designated for the special fund.

     (b)  Moneys in the fund shall be used for:

     (1)  Acquisition of food supplies for strategic food reserves;

     (2)  Construction, leasing, or maintenance of storage facilities;

     (3)  Purchasing equipment necessary for proper food storage and handling;

     (4)  Administrative costs; provided that not more than fifteen per cent of funds available shall be spent on administrative costs;

     (5)  Grants or incentives to increase production of storable food items by local agricultural producers;

     (6)  Educational programs related to food security and emergency preparedness;

     (7)  Forward contracts with local producers for future harvests of priority crops;

     (8)  Development of processing infrastructure to convert perishable local produce into shelf-stable forms;

     (9)  Research and development of improved storage methods for tropical crops;

    (10)  Support of the agricultural market development grant program; provided that not more than twenty per cent of the fund shall be allocated annually for this purpose; and

    (11)  Other expenditures necessary to carry out the purposes of this part.

     §141-G  Annual report.  The department shall submit an annual report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of each regular session.  The report shall include:

     (1)  The status of each island's strategic food reserve, including current inventory levels and storage capacity;

     (2)  Progress toward meeting the local food percentage goals;

     (3)  The financial status of the Hawaii strategic food reserves program special fund;

     (4)  Any deployment or use of the reserves during the preceding year;

     (5)  Any partnership established to support the Hawaii strategic food reserves program or agricultural market development grant program;

     (6)  Challenges encountered and actions taken to address them; and

     (7)  Recommendations for improvements to the program.

     §141-H  Rules.  The department shall adopt rules pursuant to chapter 91 to carry out the purposes of this part."

     SECTION 3.  (a)  Before January 1, 2027, the department of agriculture and biosecurity shall:

     (1)  Convene the strategic food reserves advisory committee described in section 141-D;

     (2)  Develop initial plans for strategic food reserve locations, food inventory compositions, and operation;

     (3)  Identify potential storage locations on each island;

     (4)  Identify any priority crops and publish an initial list of priority crops for local purchase requirements; and

     (5)  Establish baseline metrics for the current local production capacity of priority crops.

     (b)  Before July 1, 2027, the department of agriculture and biosecurity shall:

     (1)  Secure initial strategic food reserve storage facilities for each island;

     (2)  Establish contracts with suppliers;

     (3)  Begin the acquisition of initial food supplies;

     (4)  Implement the initial local purchase requirements for priority crops;

     (5)  Establish the economic modeling tool to determine fair prices for forward contracts described in section 141‑E(7); and

     (6)  Begin accepting applications for agricultural market development program grants.

     (c)  Before July 1, 2028, the department of agriculture and biosecurity shall:

     (1)  Achieve at least twenty-five per cent of the target capacity of each strategic food reserve;

     (2)  Integrate reverse deployment into state and county emergency management plans; and

     (3)  Implement the inventory management and rotation systems in their entirety.

     (d)  Before July 1, 2029, the department of agriculture and biosecurity shall:

     (1)  Achieve intermediate local purchase requirement targets;

     (2)  Complete the development of at least one processing facility capable of converting perishable local produce into shelf-stable forms; and

     (3)  Establish coordinated procurement standards across all state agencies.

     (e)  Before July 1, 2031, the department of agriculture and biosecurity shall achieve the target reserve capacity necessary to provide three months of essential staple foods for at least fifty per cent of the resident population of each island.

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the Hawaii strategic food reserves program special fund.

     SECTION 5.  There is appropriated out of the Hawaii strategic food reserves program special fund the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for purposes consistent with section 141-F, Hawaii Revised Statutes.

     The sum appropriated shall be expended by the department of agriculture and biosecurity for the purposes of this Act.

     SECTION 6.  In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act and referenced in sections 3 and 4 of this Act.

     SECTION 7.  This Act shall take effect on July 1, 2050.

Report Title:

DAB; College of Tropical Agriculture and Human Resilience; Strategic Food Reserves Advisory Committee; Hawaii Strategic Food Reserves Program; Agricultural Market Development Grant Program; Hawaii Strategic Food Reserves Program Special Fund; Agriculture; Local Produce; Climate Adaptation; Resilience; Supply Chains; Emergency Management; Reports; Appropriation

Description:

Establishes the Hawaii Strategic Food Reserves Program within the Department of Agriculture and Biosecurity.  Establishes purchasing requirements for crops stored at a strategic food reserve.  Establishes the Strategic Food Reserves Advisory Committee.  Establishes the Agricultural Market Development Grant Program.  Establishes the Hawaii Strategic Food Reserves Program Special Fund.  Requires DAB and the Strategic Food Reserves Advisory Committee to submit annual reports to the Legislature, respectively.  Establishes a timeline for DAB's implementation of the Hawaii Strategic Food Reserves Program.  Appropriates funds.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to strategic food reserves.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the State currently imports roughly ninety per cent of its food, creating a significant vulnerability to supply chain disruptions caused by natural disasters, economic crises, or global conflicts.  Recent studies indicate that only twelve per cent of households in the State maintain a recommended two-week emergency food supply.  The legislature further finds that Hawaii county experiences a food insecurity rate of forty per cent, which is the highest rate in the State, demonstrating an urgent need for the improvement of food security measures.

     The legislature also finds that the establishment of a strategic food reserve on each island would provide a crucial buffer during supply chain disruption and enhance the State's overall resilience.  The legislature additionally finds that integrating local food production into a strategic food reserves system would strengthen local agriculture, create jobs, improve nutrition, and reduce the environmental footprint of the State's food system.  The legislature further finds that establishing guaranteed purchase requirements for locally-grown crops and fruits will help create stable markets for the State's farmers, incentivize local food production, and strengthen the agricultural sector of the State's economy.

     Accordingly, the purpose of this Act is to:

     (1)  Establish the Hawaii strategic food reserves program to facilitate the and monitor strategic food reserves on each island of the State;

     (2)  Establish purchasing requirements for locally-grown crops stored at a strategic food reserve;

     (3)  Establish the strategic food reserves advisory committee to advise the implementation of the strategic food reserves program;

     (4)  Require the strategic food reserves advisory committee to submit an annual report to the legislature;

     (5)  Establish the agricultural market development grant program;

     (6)  Establish the strategic food reserves program special fund;

     (7)  Require the department of agriculture and biosecurity to submit an annual report to the legislature regarding the progress and effectiveness of the strategic food reserves program; and

     (8)  Establish a timeline for the department of agriculture and biosecurity's implementation of strategic food reserves.

     SECTION 2.  Chapter 141, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part     .  Hawaii strategic food reserves PROGRAM

     §141-A  Definitions.  As used in this part:

     "Department" means the department of agriculture and biosecurity.

     "Local food" means agricultural products grown, raised, or produced within the State.

     "Priority crops" means an agricultural product identified by the department of agriculture and biosecurity as suitable for strategic reserves and cultivation in the State, including but not limited to crops possessing cultural significance, nutritional value, and storage capability.

     "Rotation" means the practice of regularly rotating food stocks to maintain freshness while maintaining required inventory levels.

     §141-B  Hawaii strategic food reserves program; established; functions; purchase requirements.  (a)  There is established within the department a Hawaii strategic food reserves program for the establishment and maintenance of a strategic food reserve on each island of the State.

     (b)  The department shall administer the strategic food reserves program in collaboration with:

     (1)  The office of planning and sustainable development;

     (2)  The Hawaii emergency management agency;

     (3)  County emergency agencies; and

     (4)  Other relevant state and county agencies.

     (c)  The department shall:

     (1)  Develop and implement procedures for the acquisition, storage, rotation, and distribution of food for strategic food reserves;

     (2)  Establish minimum nutritional standards for foods stored at a strategic food reserve;

     (3)  Establish procedures for activating and deploying strategic food reserves during an emergency, including cooperation with private food purveyors as necessary to ensure the best prices and expedited delivery of strategic food reserve items during an emergency;

     (4)  Enter into contracts with local agricultural producers, food processors, and distributors for the supply and rotation of strategic food reserve items;

     (5)  Partner with the counties, private sector entities, and nonprofit organizations to support strategic food reserve operations;

     (6)  Coordinate with the Hawaii emergency management agency to integrate strategic food reserves into state and county emergency response plans;

     (7)  Develop training programs for program staff and partner organizations involved in strategic food reserve management and emergency distribution;

     (8)  Establish a transparent inventory management system with regular reporting requirements;

     (9)  Conduct an annual assessment of the capacity, condition, and readiness of each strategic food reserve;

    (10)  Adapt strategic food reserve inventory composition based on changing dietary needs, agricultural production patterns, and emergency management best practices;

    (11)  Establish mandatory local purchase requirements for priority crops according to the following schedule:

          (A)  For crops that are produced in a sufficient quantity in the State, at least sixty per cent of reserve stocks shall be sourced locally;

          (B)  For crops that are of moderate but increasing production in the State, at least forty per cent of reserve stocks shall be sourced locally; provided that at least sixty per cent of these crops shall be sourced locally in       years; and

          (C)  For other crops identified as priority crops that are of limited production in the State, at least twenty per cent of reserve stocks shall be sourced locally; provided that forty per cent of these crops shall be sourced locally in       years;

    (12)  Annually compile and publish a list of priority crops and their respective purchase requirement percentages;

    (13)  Enter into forward contracts with local producers that guarantee purchase of priority crops at fair market prices; provided that each contract shall be for a term of not less than three years and not more than five years;

    (14)  Establish differential pricing structures that may include premium prices for crops grown using sustainable or regenerative practices; and

    (15)  Provide technical assistance to support local producers in meeting food safety, storage, and quality requirements for participation in the strategic food reserves program.

     §141-C  Strategic food reserves program; requirements.  In its management of each strategic food reserve, the department shall:

     (1)  Maintain a three-month supply of essential, non-perishable staple foods for at least twenty-five per cent of the resident population of each island of the State, respectively; provided that, no later than July 1, 2031, each strategic food reserve shall maintain a three-month supply for fifty per cent of the resident population;

     (2)  Include a diverse selection of nutritious, culturally appropriate food items possessing an extended shelf life;

     (3)  Include a minimum of thirty per cent locally-produced food items in its inventory;

     (4)  Be strategically located to ensure accessibility during emergencies, with consideration given to sea level rise, flood zones, and other potential hazards;

     (5)  Operate on a revolving basis, with regular rotation of inventory to maintain freshness and minimize waste;

     (6)  Integrate into existing food distribution networks where appropriate, including partnerships with food banks, grocery retailers, and agricultural producers;

     (7)  Prioritize storable crops that may be cultivated in the State, including but not limited to taro, sweet potato, breadfruit, banana, and papaya; and

     (8)  Support traditional Native Hawaiian food systems and indigenous crop varieties where appropriate.

     §141-D  Strategic food reserves advisory committee; established; duties; annual report.  (a)  There is established within the department, for administrative purposes only, a strategic food reserves advisory committee.  The strategic food reserves advisory committee shall be an advisory body exempt from section 26-34, to advise the department in its implementation of the strategic food reserves program.

     (b)  The strategic food reserves advisory committee shall comprise the following members:

     (1)  The chairperson of the board of agriculture and biosecurity or their designee, who shall serve as chairperson of the advisory committee;

     (2)  The administrator of the Hawaii emergency management agency or their designee;

     (3)  One member representing the office of planning and sustainable development;

     (4)  One member representing each county management agency, respectively;

     (5)  One member representing the university of Hawaii at Manoa college of tropical agriculture and human resilience;

     (6)  One member representing a farm organization that represents small-scale diversified farmers;

     (7)  One member representing the Native Hawaiian farming community with knowledge of traditional crop systems;

     (8)  One member representing the food processing sector with expertise in the preservation methods of tropical crops;

     (9)  Two members representing the local agricultural production center to be appointed by the governor;

    (10)  One member representing the food distribution industry to be appointed by the governor;

    (11)  One member with expertise in nutrition or public health, to be appointed by the governor; and

    (12)  One member with expertise in food storage and preservation, to be appointed by the governor.

     (c)  The advisory committee shall:

     (1)  Provide recommendations on the types and quantities of food to be included in each strategic food reserve;

     (2)  Advise on storage and rotation procedures to maximize the shelf life of food and minimize waste;

     (3)  Review and provide input on distribution plans for an emergency situation;

     (4)  Identify opportunities to increase the percentage of locally-produced food in each strategic food reserve;

     (5)  Monitor program effectiveness and recommend improvements;

     (6)  Recommend adjustments to local purchase percentages based on current agricultural production capacity;

     (7)  Identify any barriers to increasing local production of priority crops and recommend solutions;

     (8)  Develop strategies to assist small- and mid-sized farms with strategic food reserves program participation; and

     (9)  Review pricing structures to ensure fair compensation for farmers participating in the strategic food reserves program while maintaining program sustainability.

     (d)  The strategic food reserves advisory committee shall submit a report of its findings and recommendations, including any proposed legislation, at least twenty days prior to the convening of each regular session.  The report shall detail the status of each strategic food reserve, including inventory levels, rotation activities, challenges, and recommendations.

     (e)  The strategic food reserves advisory committee shall meet at least once per quarter to review the status of the strategic food reserves program and address any emerging issues.

     §141-E  Agricultural market development grant program; functions.  The department shall establish and administer an agricultural market development grant program to support strategic food reserves in the State.  The agricultural market development grant program shall:

     (1)  Identify crops that are currently imported that could feasibly be grown in the State for inclusion on the list of priority crops;

     (2)  Collaborate with the university of Hawaii college of agriculture and human resilience to develop improved varieties of storable crops suitable for the State's growing conditions;

     (3)  Provide grants to farmers for infrastructure, equipment, and training necessary for the production of priority crops;

     (4)  Establish processing facilities for converting perishable local produce into shelf-stable forms suitable for storage at a strategic food reserve;

     (5)  Develop seed systems to ensure that any locally adapted crop variety remains available to farmers in the State;

     (6)  Establish a certification program for products meeting program standards;

     (7)  Establish an economic modeling tool to determine fair prices for forward contracts that ensure farmer profitability while maintain program stability; and

     (8)  Coordinate with existing agriculture development programs to align incentives and resources toward increasing the production of priority crops.

     §141-F  Strategic food reserves program special fund; permitted uses.  (a)  There is established within the state treasury the strategic food reserves program special fund, into which shall be deposited the following:

     (1)  Appropriations made by the legislature;

     (2)  Grants, donations, and contributions from a public or private entity;

     (3)  Revenues generated from the sale of aged inventory through the rotation process;

     (4)  Federal grants for food security programs;

     (5)  Interest accrued on the balance of the fund; and

     (6)  Any other revenues designated for the special fund.

     (b)  Moneys in the fund shall be used for:

     (1)  Acquisition of food supplies for strategic food reserves;

     (2)  Construction, leasing, or maintenance of storage facilities;

     (3)  Purchasing equipment necessary for proper food storage and handling;

     (4)  Administrative costs; provided that not more than fifteen per cent of funds available shall be spent on administrative costs;

     (5)  Grants or incentives to increase production of storable food items by local agricultural producers;

     (6)  Educational programs related to food security and emergency preparedness;

     (7)  Forward contracts with local producers for future harvests of priority crops;

     (8)  Development of processing infrastructure to convert perishable local produce into shelf-stable forms;

     (9)  Research and development of improved storage methods for tropical crops;

    (10)  Support of the agricultural market development grant program; provided that not more than twenty per cent of the fund shall be allocated annually for this purpose; and

    (11)  Other expenditures necessary to carry out the purposes of this part.

     §141-G  Annual report.  The department shall submit an annual report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of each regular session.  The report shall include:

     (1)  The status of each island's strategic food reserve, including current inventory levels and storage capacity;

     (2)  Progress toward meeting the local food percentage goals;

     (3)  The financial status of the strategic food reserves program special fund;

     (4)  Any deployment or use of the reserves during the preceding year;

     (5)  Any partnership established to support the strategic food reserves program or agricultural market development grant program;

     (6)  Challenges encountered and actions take to address them; and

     (7)  Recommendations for improvements to the program.

     §141-H  Rules.  The department shall adopt rules pursuant to chapter 91 to carry out the purposes of this part."

     SECTION 3.  (a)  Before January 1, 2027, the department of agriculture and biosecurity shall:

     (1)  Convene the strategic food reserves advisory committee described in section 141-D;

     (2)  Develop initial plans for strategic food reserve locations, food inventory compositions, and operation;

     (3)  Identify potential storage locations on each island;

     (4)  Identify any priority crops and publish an initial list of priority crops for local purchase requirements; and

     (5)  Establish baseline metrics for the current local production capacity of priority crops.

     (b)  Before July 1, 2027, the department of agriculture and biosecurity shall:

     (1)  Secure initial strategic food reserve storage facilities for each island;

     (2)  Establish contracts with suppliers;

     (3)  Begin the acquisition of initial food supplies;

     (4)  Implement the initial local purchase requirements for priority crops;

     (5)  Establish the economic modeling tool to determine fair prices for forward contracts described in section 141‑E(7); and

     (6)  Begin accepting applications for agricultural market development program grants.

     (c)  Before July 1, 2028, the department of agriculture and biosecurity shall:

     (1)  Achieve at least twenty-five per cent of the target capacity of each strategic food reserve;

     (2)  Integrate reverse deployment into state and county emergency management plans; and

     (3)  Implement the inventory management and rotation systems in their entirety.

     (d)  Before July 1, 2029, the department of agriculture and biosecurity shall:

     (1)  Achieve intermediate local purchase requirement targets;

     (2)  Complete the development of at least one processing facility capable of converting perishable local produce into shelf-stable forms; and

     (3)  Establish coordinated procurement standards across all state agencies.

     (e)  Before July 1, 2031, the department of agriculture and biosecurity shall achieve the target reserve capacity necessary to provide three months of essential staple foods for at least fifty per cent of the resident population of each island.

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the strategic food reserves program special fund.    SECTION 5.  There is appropriated out of the strategic food reserves program special fund the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for purposes consistent with section 141-F, Hawaii Revised Statutes.

     The sum appropriated shall be expended by the department of agriculture and biosecurity for the purposes of this Act.

     SECTION 6.  In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act and referenced in sections 3 and 4 of this Act.

     SECTION 7.  This Act shall take effect on July 1, 2026.

Report Title:

DAB; College of Tropical Agriculture and Human Resilience; Strategic Food Reserves Advisory Committee; Strategic Food Reserves Program; Agricultural Market Development Grant Program; Strategic Food Reserves Program Special Fund; Agriculture; Local Produce; Climate Adaptation; Resilience; Supply Chains; Emergency Management; Reports; Appropriation

Description:

Establishes the Strategic Food Reserve Program within the Department of Agriculture and Biosecurity.  Establishes purchasing requirements for crops stored at a strategic food reserve.  Establishes the Strategic Food Reserves Advisory Committee.  Establishes the Agricultural Market Development Grant Program.  Establishes the Strategic Food Reserves Program Special Fund.  Requires DAB and the Strategic Food Reserves Advisory Committee to submit annual reports to the Legislature, respectively.  Establishes a timeline for DAB's implementation of the Strategic Food Reserves Program.  Appropriates funds.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 2488

Honolulu, Hawaii

RE:     S.B. No. 3162

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Agriculture and Environment, to which was referred S.B. No. 3162 entitled:

"A BILL FOR AN ACT RELATING TO STRATEGIC FOOD RESERVES,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish the Hawaii Strategic Food Reserves Program within the Department of Agriculture and Biosecurity;

     (2)  Establish purchasing requirements for crops stored at a strategic food reserve;

     (3)  Establish the Strategic Food Reserves Advisory Committee;

     (4)  Establish the Agricultural Market Development Grant Program;

     (5)  Establish the Hawaii Strategic Food Reserves Program Special Fund;

     (6)  Require Department of Agriculture and Biosecurity and the Strategic Food Reserves Advisory Committee to submit annual reports to the Legislature, respectively;

     (7)  Establish a timeline for the Department of Agriculture and Biosecurity's implementation of the Hawaii Strategic Food Reserves Program; and

     (8)  Appropriate funds.

     Your Committee received testimony in support of this measure from the Department of Agriculture and Biosecurity; Hawaiʻi Farm Bureau; Hawaiʻi Farmers Union United; Hawaii Food Industry Association; Hawaii Cattlemen's Council, Inc.; Think B.I.G. Hawaiʻi; Green Party of Hawaiʻi; and six individuals.

     Your Committee received comments on this measure from the Department of the Attorney General.

     Your Committee finds that the State is uniquely vulnerable to supply chain disruptions, such as pandemics or extreme weather events, due to a heavy reliance on food importation.  In the event of a major natural disaster, port closure, economic disruption, or geopolitical crisis, the State's communities could face immediate and severe consequences.  Your Committee further finds that working with local food producers, manufacturers, suppliers, distributors, and retailers before a disaster strikes is an essential component to statewide preparedness.  This measure will support local agricultural producers and provide a crucial supply chain stopgap by providing each island with strategic food reserves.

     Your Committee acknowledges the concerns raised in testimony by the Department of the Attorney General that, pursuant to the Hawaii State Constitution, this measure requires language establishing appropriate standards for state agencies to issue grants.  Therefore, amendments to this measure are necessary to address these concerns.

     Accordingly, your Committee has amended this measure by:

     (1)  Clarifying that the Strategic Food Reserves Advisory Committee members representing small-scale diversified farmers, the Native Hawaiian farming community, and the local food processing sector shall be invited by the Chairperson of the Board of Agriculture and Biosecurity;

     (2)  Inserting language establishing appropriate standards for the Department of Agriculture and Biosecurity to issue grants to support strategic food reserves in the State under the Agriculture Market Development Grant Program;

     (3)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3162, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3162, S.D. 1, and be referred to your Committee on Ways and Means.

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