Senate Standing Committee on Agriculture and Environment

Okay. Aloha mai kakou and good afternoon. Mahalo for joining today's AENTRS, hearing. It's Friday, February 13. Aloha.

And we're convened in Room 224 with video conferencing, which includes the audio and video remote participants that's being streamed live on YouTube. And so, unlike the event that this hearing is cut short, committees will reconvene to discuss any outstanding business on Wednesday, February 16 at 03:05PM during AM's time slot and a public notice will be posted on the legislature's website. And let's see. We do have a two minute time limit and there are testimony. We have two measures on the agenda.

The first is SB 2709, requiring Department of Ag and Biosecurity to establish rules to enforce the Akamai arrival program, requires DAB to strengthen enforcement of plant and non domestic animal quarantine, microorganisms, importations. First up is DLNR.

Aloha chairs and members of the committees. My name is Patrick Chi from the title line on natural resources and the Hawaiian Bases Species Council. We stand in strong support of this bill. We believe that the department and supporting the requirements of dab to establish their Rules to enforce the Akamai arrivals program. We believe that it will be helpful, very strategic in managing imports, which is the cornerstone of biosecurity prevention, preventing invasive species coming into the state.

So we also support the various amendments that this bill makes in order to make certain parts of one fifty a mandatory rather than optional. There are many areas where that will help improve the Department of Agriculture and Biosecurity's authority and enhance their capacity to fill their mandate in biosecurity. If you have any questions, I have available.

Thank you. Thank you, Patrick. Next is, Dab.

Aloha, chairs, Senator DeCoite. Cedric Gates here on behalf of DAB. DAB stands on its written testimony offering comments in support of this measure. Here for any questions. Mahalo.

Thank you, Cedric. Next is Jacob Aki with Alaska and Hawaiian Airlines.

Hello, chairs, vice chair, members. Jacob Aki on behalf of Alaska Hawaiian Airlines. We did submit comments. We did submit testimony with, with a few comments. Our company strongly supports these states' efforts to protect our natural environment and to prevent, the entry of invasive species.

But we do have some concern, with some of the language change, particularly as it relates to the state's authority to inspect our aircrafts. Our concern is a change on page six that goes from May to shall. The wording shift removes discretion and requires inspections whenever there is good cause regardless of federally regulated operational control, safety timing, TSA protocols. And as you folks know, aviation is an area of exclusive federal authority. So aircraft access, access, crudely limits, maintenance windows, and secure, secure, area entry are all federally governed.

And without clarification, this creates a meaningful risk of federal preemption and operational conflict. We request that if this bill does move forward, a simple amendment stating that inspections must be conducted in a matter consistent with federal aviation safety, security, and operational requirements, be, added in. We did provide, some some suggested language in our testimony, but we strongly support the state's effort, to, ensure biosecurity, enforcement, throughout the state. Thank you for the opportunity to testify, and we are available if you have any questions. Thank you.

Thank you, Jacob. Let's see. Anyone else wishing to testify on this measure? Members, any questions?

Yes. Questions for, Jacob or Alaska Hawaiian Airlines? And the measure calls for the inspection on the aircraft. Yep. And and I'm sorry.

I haven't gotten a chance to look at the the the scheduled timings for inspections. So the question I have, coming from the Committee on Transportation as well, and on an aircraft every week while I'm here for four months, the inspection, does it simplify when or designate a time for inspections? So is it all the aircrafts on all the islands? Well, except for those that don't have in yeah. Yeah. So Island is just Hawaii, big island In Kona. Actually does not have overseas carriers except for coming August when Yeah.

Or in Kona. Yeah. So it would be subject to flights that currently have the Akamai arrival form. So that's all flights coming into the state from the continent. So Hilo doesn't have any flights until another carrier starts in August.

But the timing, I don't think the bill does say when, you know, when happens. It just gives the it it it changes the authority from may to shall. And we're just concerned that, you know, if a agent says that there's good cause and they say, well, the state law says that I shall, you know, there there are obviously some other federal nexuses that need to be considered.

Okay. Another question. When the aircraft comes in, if the inspection and that's why I talk about timing, the time they want it to be inspected. On arrival, if the inspection, once everybody, the passengers disembark, you have an empty aircraft. Does the inspection happen then? But then and another concern is the inspections have nothing to do with luggage, I assume.

It might. I mean, I'm not sure what the bill inspection, you should talk you should confer with with the chairs as well, because the delays for passengers coming out, disembarking, why would they have to wait forever to get their baggage pickup if there's gonna be an inspection? So it's something, you know, that the committees can deliberate, Hopefully that it doesn't move as fast. And I understand they might be

Yeah. Of some recommendations coming up from the chair, the lead chair. So, take that in mind, as well. The, yes, the timing, make sure that luggage are not, you know, I don't know what the plans are. And so that's important because we want to continue moving and, and, and having our people visit Hawaii also returning, returning, families. Correct. Yes. And, and our, constituents as well and people who are returning home.

Yeah.

So, you know, those are the issues, particularly when it has to do with the aircraft. I know, you know, we kinda have an idea about the harbors, but the this is something new.

Yeah. No, chair. And, you know, we just wanted to make clear that the airlines, do not have a concern with working with the state, you know, to, to inspect. But, you know, being that the language in this bill does change it to shall, you know, there could be concerns if there was an agent, you know, as I shared that said, well, I think there's a reasonable cause.

I'm gonna jump on recognizing that there may be some operational impact, which is what we wanna make sure that if there is an ability for a state to do that, which I don't think we're necessarily up you know, opposed to that, it does align with whatever the federal rules are, TSA and and all of that.

So

Okay. Thanks.

Thanks, sir. Go ahead.

Jacob, how how many of those flights, would be subjected for Alaska and Hawaiian?

For Alaska and Hawaiian, I would say maybe about, 40 flights per day. That's it.

How many passengers on those flights Max?

Each plane, if we've set out on a plane, about 300 people.

K.

Okay. Thank you. Thank you, chair.

I got a question for Gabb. Cedric?

So,

Cedric, how is this bill gonna strengthen the enforcement of the Hakamai program?

Thank you, chair, for the question. I have our subject matter expert, Jonathan, in the room. Okay. If Jonathan could join us.

Jonathan Ho, plant quarantine branch manager. As it relates to so I the intent of the measure to create rules and to standardize and, you know, I think a lot of the mace to the shells. I think we we agree with the intent of trying to ensure that there is more authority to do the work. But I think to the extent, I think similar to what airlines are saying, I think it can't always be a shell.

And I think we were trying to make sure that that there there's a there's a clear balance to it.

And I think to the extent of, like, rules as it relates to Akamai arrival, we

you know, obviously it's it's been in effect for the nine ten months at this point, and we're again, we're using it only with the airlines. Obviously it needs to be expanded to other modes of import, modes of entry for other things, private jets, service vessels, things like that. So I think the idea of kind of like, for like, for example, requiring the digitization only kind of conflicts with that, particularly as the way of the way the system is set up.

It it it uses a lot of automation through, the same system DOT does to get the airline flight information. So trying to create that for everything else, I think the way the rules are or the way the bill is set up, it may make it a challenge for us to be able to accomplish in a timely fashion.

Okay. Thank you.

Can I add to that? And I I for the private jets, there's no secure I mean, right now, the private jets arrive, passengers get out and depart the I mean, you know, their part, so there's really nothing more, on their arrival. So I think, with regards to the inspections, perhaps you have a little more time other than the regular scheduled aircraft.

I mean, providers like Hawaiian or, you know, because the private jets usually, if they come in, they come in and they stay for quite a while, for some of them. Now they are emergency vehicles that are private charters that bring in from out of state, families coming home in a private jet who's ill.

And I know I've had several of families coming home in a private jet. You know, what do you do with those as well? Okay. So just a

just some input. Yes.

Thank you.

Thank you, Jack. Follow-up.

So, Jonathan, on the on the smaller islands, Lanai, Molokai, when the private jets come in, how you guys would address that? Because you guys don't have the, inspection or the or the manpower or employees even for that matter there.

Correct. So one of those challenges is so so the so the small carriers, they do provide us with agriculture forms. So they're the same day. So generally speaking, for example, like with Molokai or Lanai, if there is something regulated, it's a lot of voluntary. Tell them we cannot be imported, and then we have to go and get it after the fact.

It's it's just the nature of the beast, unfortunately, at this point.

I'd just like to add to that, senators. We are in the process and in discussions with our GIS staff to update some of the software needed to transfer some of the information.

As we discussed in previous briefings and committee hearings, we're trying to use AI to process a lot of the information and data that DAB receives regarding these forms and being able to flag what needs to be flagged and send that to our enforcement agencies, our divisions to be able to address what we are receiving back in these forms.

Because because we get the jets that fly in direct from the Mainland as well. And I think, you know, we're defeating the whole purpose if we have nobody there, and then we just do the out of sight, out of mind. Yeah?

Correct. Okay. Thank you, sir. Thank you.

Okay. Sure. Yes. Questions there?

On the compliance, I think in one of the previous briefings, you said about 75% compliance with the inspection. What is the department's timeline and what is the ultimate goal as I mean, 100% is the ultimate goal, but the realistic goal, and what's the time line to get to that? Yeah. So so one

of the biggest challenges is is so there's the form, and then there is there is the check, I think, per se. And I think when you deal with people and their individual liberties, like, to search them is difficult at so the thing

that we're trying to do is get back the use of detector dogs, so in the in the in the airports. And so we brought the program back for Brown Tree Snake, and we use it limited for cargo. One of the dogs has recently retired, so we're sending the handler up. When is it now? April.

To get a new dog, retrained and then to be able to be utilizing, that dog in at least in Honolulu for baggage. So, obviously, at that point, the ability to compel inspection is gonna be a lot easier because calls and everything like that. And so that that's the limited that's the limited one. The big picture as it relates to is is we're trying to create a new series of biosecurity technicians to lower the educational requirements, because right now they're all inspectors, so for your college degree.

And what we wanna do is create a new series with the technicians so that we can better and with, you know, a lot of bills to do the academies to be able to have a pipeline for for folks to be able to get in and then be, disseminated throughout the state for that particular work.

And and I think that's all right on the enforcement side. But on the Akamai arrival, when what's the goal and what's the timeline to get that high 90%?

Yes, Senator. One of the goals of this measure is to give DAB increase enforcement ability. And what we're going to do with that is cite folks who are not completing it, but also give them opportunity to complete the form within a timely manner before that citation kicks in. And this was derived from conversations we've had at the WAM EEN briefings. And we took the legislature's feedback and introduced this measure.

To try to address that, because we're getting to 90%. The timeline would be better answered by Jonathan on that end.

So

there's I wanna say the the citation portion is is is a little bit of a challenge. And I think there's a number of measures that are coming through the legislature this session that are actually gonna really clarify clarify that. And we're working with the attorney general and the what is it? The Department of Law Enforcement to have the staff retrained and then get the citations and everything back up so that once we get the dogs, we're gonna be able to begin the citation process.

And we're hoping to do that probably at the end of this year.

But once we get the dog in, get them settled, get the staff trained, I'm I'm I'm I'm hopeful that we're gonna be able to do that by the end of this year.

And Senator, we'll make sure they get back to you on the official timeline

The timeline. Thank you.

on that.

I got you.

Okay. One more. Thank you.

Oh, Brown tree snakes. How many airports in the state are you inspecting for that, or it's just for TKI?

So we I would say, like, 90, like, 99% of the flights are in in through Honolulu or on Oahu. So that's not just joint pace, Pearl Harbor Hickam, that involves Barber's Point, County Marine Corps Air Station. There are once in a while, flights that do go to Kona or Maui, but those are generally private jets.

How many inspectors do you have? One per air I mean, one for aircraft?

Yes. Inspectors go He would be a single inspector to do an inspection.

Okay. Alright. Thank you.

Thank you, Jimmy. Thank you.

Alright, chair. I'll turn on mute. Okay.

Alright. We'll proceed then with the next agenda item. This is the joint with the Committee on Transportation and the Committee on Agriculture and Environment.

No, we're still in the 3154 vote.

Yes.

Right, is that the hand?

Yes. Okay. Sorry. Yes. Yes.

On SB, 3154, and this is relating to transportation and the environmental review. This authorizes the DOT to assume responsibilities under the national environmental policy act of 1969 for highway projects, such as railroad public transportation and multi model, projects within the state.

And it allows streamlining environmental reviews. And this is an administration, measure as well, members. This also is just clarifying, the cooperation between DOT and in, with the federal agency with regarding to the Policy Act of 1969.

So, this is a very simple measure, just agreeing that the DOT and the State of Hawaii conforms to the Policy Act.

DOT.

Hi. Good afternoon. Chair, Vice chair and members of committee, Robin Shishido with Hawaii Department of Transportation and stand by our submitted testimony and strong support. Thank you.

Thank you very much. Is there anyone else wishes to speak to SB 3154?

Hearing none. Members, any comments with regards to 3154? going once going oh, yes.

Senator DeCoite.

DOT?

Hey. Hi, Robin. So as provided in the bill, will the department be able to do by assuming certain federal environmental review responsibilities under the National Environmental Policy Act that you cannot do now?

So right now, when we do our consultations, you know, federal aid projects, you know, we go through federal highways and federal highways, then talk soon resource agencies.

So with this, then we'd be able to work directly with some US Fish and Wildlife ship fee for section 106, you know, NOA and, you know, for all the different resource agencies when we're doing our environmental clearance documents. So we just go directly to the federal agencies rather than going through federal hires.

Okay. Okay. Thank you. Thank you, chair.

Thank you. Any further discussions on SB 3154?

Okay. Hearing none, members, chair

Shall we go right into decision making?

Okay.

On the two measures?

On the two measures, yes. You have quorom

Right. I don't GFR?

Yep. Not at the moment, but

Why don't we do a recess for now?

Let's take care of your bill first.

Okay. We'll just go through on the first measure, SB 2709. Yeah. The Chair's rec - well, we're good. We need to work out smart on this bill, so we're gonna defer the decision making till Tuesday, February 17 at 03:02 p.m. in Room C R 229.

And the Committee on Transportation, same recommendation. However, our dates will be different from - that's regarding SB 2709. Committee on Transportation will be deliberating and decision making on this measure on February 17 at 03:01 p.m. in Room 229. Okay. And retract. We'll meet in Room 30 at 302 in Room 229 on February 17. That's a Committee on Transportation. Okay. Okay.

Yes. And that - okay. Can we go with our measure? And you can decide what you want to do with this since you have quorum.

Yeah. Chair's recommendation on the joint, SB 3154, relating to transportation environmental review on this administration's measure. Chair's recommendation is to pass with amendments, which is just technical, on this measure, and that's it for it. That's the recommendation. The Committee on Transportation, we do have a quorum.

We will be taking a vote on this measure. Senator DeCorte, will you be my assistant today to record the vote? Okay. So, any discussions on Committee on Transportation on SB 3154? Hearing none, Vice Chair, temporary, Chair's recommendation is to pass SB 3154 with amendments.

Okay. Chair's recommendation and chair's vote is to to pass this measure. And I vote aye.

Thank you. Committee on Transportation. Chair's recommendation is to pass with amendments. [Roll Call]. Chair, your measure is adopted.

And for AEN, the same recommendation. Any discussion? Chair votes aye, vice chair.

Senate Bill 3154 passing with amendments. [Roll Call]. Chair, you have five in favor. Motion adopted.

Thank you, members. And that concludes the 03:00 agenda.

Thank you. Aloha and welcome to the joint hearing with the Senate Committee on Economic Development and Tourism and Agriculture Environment. Today is Friday, 02/13/2026. This is our 03:01pm agenda, and we're in Conference Room 224. This hearing is being streamed live on YouTube, an unlikely event that we must abruptly end this hearing.

Due to technical difficulties, the committee will reconvene on Tuesday, 02/17/2026 at 1PM in Conference Room 229. This agenda has three bills.

First bill is Senate Bill 2374, relating to a blue economy. First up, Department of Business Economic Development. Dane, please.

Good afternoon chairs, vice chairs of the Joint Committee. Dane Wicker, Deputy Director of DBEBT. DBEBT offers comments on this bill and just like to expand a little bit more on that, outside of our testimony. What this bill asked for is establishing working group currently, DBEBT sits on 20 working groups or task force.

That does give us a capacity challenge in trying to administer and effectively run those working groups as well as produce the reports in a timely matter.

If the committee decides that a working group is the approach for this discussion. We would ask for resources. We don't have staffing capacity to administer this. We could look at contracting out, which would be roughly about 100,000 based on past practices. We've seen that happen with the speed task force where monies were provided.

We did see capacity challenges recently with our business revitalization task force as well as the interagency food systems task force. But also maybe a recommendation to consider. The blue economy is critical at this point in time, but this discussion really is.

NOA, ADC, HTDC, and department, then Department of Agriculture executed MOA to start looking at what the blue economy is and what is the plan and how do we get there. You know, most economic activities are land based.

We are very fortunate given our geographical position to look at not only land based but also ocean based as well as space based. And so this discussion is timely. Those agencies that I mentioned that have already begun to meet internally.

The deliverables that are asked in this bill as an option outside of working group, we would definitely like to explore it, and we would welcome it maybe being a formal request through a letter or memo to the department for us to do that research and get back to you folks, even if it's at the end of this year ahead of the legislative session or earlier.

That would give us more flexibility, to reach out to those agencies or organizations that you that you've identified and first to gather the information.

Whereas with the working group, we would have to post agendas. Take minutes. Smaller.

Can you wrap up your testimony, please?

Yes. So that's the consideration. If you, if you want to proceed that way. Thank you.

Thank you. Next up, DAB.

Missing. Okay. In support. Chris Caufield for Imua Alliance.

Hello, chairs and committee members. I know you're on the cusp of a three day weekend, so I'll be very brief. I'm Chris Caulfield speaking to you today as the President of the Imua Alliance. I really thank you for hearing this measure. We'd like to thank the introducer for sponsoring this measure as well.

We're a gender violence, service provider, but the reason that we're interested in this, we've been supporting, energy and climate measures for a number of years because of the link the clear link between, climate change and gender violence and sexual exploitation.

But a lot of the survivors that we work with, are actually working in or are receiving some kind of, what we consider some kind of culturally therapeutic care through Blue Economic Ventures. That's why we're particularly interested in this.

The Blue Economic Ventures tend to be very INA based, which can be very culturally relevant culturally sensitive and very useful for survivors of gender violence as they, you know, work toward personal healing and restoration. As you just heard, there's a number of blue ventures that are already operating in the state.

There's the HatchBlue Ventures. There's NELHA. There's a number of aquaculture ventures and marine based restoration ventures. And we think as now is the time, as DBEDT had just said, to really come together to figure out a pathway forward for codifying what a blue economy could look like in Hawaii. There are studies that show that, globally, a blue economy could grow to up to $3,000,000,000,000, by 2030.

So this is an opportunity to look at how we can build a thriving industry and economic opportunity in this particular space. So thank you very much for the opportunity to speak to you today.

Thank you. Next up, Sydney Haas testifying for Hawaii Food Policy in support. Ron Tubbs in support on Zoom?

Not on Zoom, Chair.

Thank you. Next up, Meredith with comments. Glen Kagamira in support, and Jacob Nguyen, in support. Anybody else wishing to testify in this measure?

None. Members, any questions?

Question for, DBEDT, please.

And can the governor's advisory committee on marine affairs carry out the functions of this proposed working group?

No. I have to get back to you on that, Senator, and check on what they're I'm not familiar with that, so I have to get back to you on that. That was the governor's marine advisory group?

Yeah. Marine affairs.

Okay.

I'll get back to you, Senator.

Okay. Thank you. Any other questions? Seeing none. Moving on; Senate Bill 2907, relating to Marine Affairs. First up, Office - Hawaii Office of Planning and Sustainable Development, Mary Alice, wait comments.

Laurence Sombardier testifying for NEHLA on Zoom. Go ahead.

Aloha, Chair. We stand on our testimony. I'm available for questions.

Thank you. Next up, Trung Lam testifying for HTDC.

Hello, Chair, Vice Chair, and members of the joint committee. Trung Lam with HTDC. Since, I started in this position, we gathered 65 ocean sector organizations and came up with a clear message. The blue economy is a high growth sector waiting for Hawaii to take its rightful place as a leader in the pacific. Today, the blue economy contributes $10 billion in GDP and supports 97,000 jobs or 16% of our workforce.

That gives us, as Hawaii, both a strong economic foundation and one of the most compelling opportunities to diversify our economy in a sector aligned with our place, our culture, and our people. This bill responds directly to the industry's call. It formally establishes Hawaii as a focused ocean cluster and creates a unified task force under HCBC along with a dedicated marine coordinator to align agencies, industries, and research institutions around a shared vision for growth.

With this structure in place, Hawaii will be positioned to claim a rightful share of more than $100 million in near term federal and private funding in the blue economy. Thank you very much for the opportunity to testify.

Thank you. Next up, DEB in support. Wendy Gady for ADC, in support. Oh, thank you, Wendy.

Anthony John Esasa testifying for Pacific Impact Zoom with comments. Valerie Harmon on Zoom testifying for Namaka Algae. Go ahead.

Aloha, committee members, chair, and vice chair. My name is Valerie Harmon. I'm the founder and CEO of Namaka Algae. I stand by my written testimony, and I want to add Namaka Algae is focused on supporting local food production with locally grown microalgae. We are located at NEHA on the Big Island Of Hawaii where we have a biology lab, an engineering lab, and an outdoor cultivation space.

We produce products for local animal feed producers, aquaculture feed producers, pet treat businesses, locally produced food and cosmetic markets. Our company is a start up and relies on support from our local ecosystem. We work with our local community colleges to support workforce development for algae and limu cultivation. We are a vital component of our vibrant blue economy. There are many entities working in the blue economy now.

However, we have no way to organize and focus our efforts to make the most of Hawaii's undeniable opportunity to capitalize on our unique blue economy assets. As a long time resident with children born and raised in our magnificent state, I have a vested interest in creating good quality employment to ensure my children and their children have valuable opportunities here in our home state.

An organized office of marine affairs and task force based within HDDC will provide a mechanism for us all to work together to create jobs and attract federal, philanthropic, and private funding, all of which will be critical to our companies and our state's success in supporting food security in our state, as well as our state's ability to retain our talent. We support formation of an ocean cluster in Hawaii. Thank you for your time and attention to this important legislation.

Aloha.

Thank you. Next up, Doreen Wong.

Mahalo. Aloha, chair, vice chair, esteemed committee members. Thank you for being here today and listening to my testimony. I'm Doreen Wall. I also go by Dory. I'm a resident of Oahu.

And I've been working for fourteen years across a cross section of technology innovation, policy, and finance, and in the last six years, specifically around the sustainable blue economy and ocean innovation. I've been supporting across the world, not only working closely with the UN, but also on the federal level, I've been DC for about four years, and also at the local level working with University of Hawaii. And I've seen this potential.

So, over the last several months, I've been able to see the work that HCDC has done to convene and bring everyone together to work on the sustainable blue economy and ocean innovation. And it's so important now as we think about our future of our economy here in Hawaii, but also our oceans health.

And it's disappointing when I hear when I'm going to events and I have people come up to me and ask, "Where is Hawaii? We would love to see more that could be done here in Hawaii. Where is that?" And so I stand here to represent those dots and that we have the ingredients to be success. And we see what's possible as well too.

So, for example, UH has an HPU. They have well known marine programs. We also have NOHA that has incredible infrastructure to support the cutting edge innovation as well as, like, clean energy for ocean and energy. We've also seen how our roots and our values and indigenous values and knowledge has played a key role in ocean innovation and sciences. And so, I am here because I've seen what's possible in other regions as well.

For example, in San Diego, where they established their ocean cluster in 2007 to really help to champion this work for their region and demonstrated double the economic impact. So, I strongly urge you to support SB 2907. And as stated in the You Hero report, "Is Hawaii being left behind?" I quote, "Addressing the cost of living remains essential. With thoughtful, locally driven policy and renewed commitment to long term value creation, Hawaii can move for being left behind for building a more dynamic and resilient future." So I strongly urge you to support this this bill. Thank you.

Thank you. Next up, Jimmy Fries.

Yeah. Hi. Chair, Vice Chair, members of the committee. My name is Jimmy Fries. I stand by my written testimony. I have a company here, high technology company that's focused in the marine space, performing artificial intelligence and computer vision: work very closely with the Hawaii Longline Association along with other fisheries around the world.

Thank you. So, next up, Noah Pentelovich on Zoom.

Thank you.

Thank you. My name is Noah Penelovich. I am the Head of Hardware for Hohonu, and I stand by my testimony in support of Senate Bill 2907. Hohonu is a local company offering flood intelligence solutions, including designing and manufacturing our flood sensors here in Hawaii. We strive to source as many of our components as we can locally.

We get our boxes from Rango Packaging and Kapolei, our machine parts from GT Scientific in Salt Lake, our housings from Pacific Pipe in Kalihi. We have brought production in house on components we used to fabricate in China. We are committed to sourcing from local suppliers or making components ourselves as much as we can. Companies, especially hardware companies like Kohonu, thrive when there's a strong connected ecosystem of companies, growing the local skill base and supply chain.

Maintaining and coordinating those connections is an extraordinarily time consuming and complicated task.

Establishing an office of marine affairs with the marine affairs task force and declaring the state notion cluster of the positive effect of coordinating the local blue economy ecosystem, support our ability to grow and support others' growth as well. We believe Senate Bill 2907 will enable that collaboration, and we strongly support this passage. Thank you.

Thank you. We have 10 people in support, one with comments. Anybody else wishing to testify on this measure? Please state your name and then go ahead.

My name is, Doctor Nicholas Ulm. Aloha, Chairs and Vice Chair; I stand behind my written testimony with the following comments: I am the CEO and Founder of Hawaii Ocean Power Solutions. We provide a wave energy buoy based off of the Halona Blowhole.

I have dedicated the last decade of my career and my entire adult life to addressing our state's food and energy security needs. I was born and raised here on Oahu, and I would like to see more people like me be able to continue to make it here. My story is like that of so many of our kamaʻāina. I spent as much time as in the ocean as I did the classroom. I grew up here, and I went to college on the Continental US.

I received a degree in engineering, and unlike many of my friends, I was able to come back to the islands after. This happened because I was attracted back to Hawaii for my PhD at the University of Hawaii, because we have one of the best programs in the country, supported by a strong blue economy with local companies such as Makai Ocean Engineering, Oceanit, and my own company able to hire local graduates.

We have strong innovation and workforce development programs with groups like Purple Maia and Kupu, who are able to provide jobs that are good paying jobs and deeply fulfilling. But in my process of starting my own company, I was only - sorry, I was privileged to be supported by High Tide and Hatch, through the ocean foundry and incubator program, both supported through the state. This was my first interaction with supported business development programs, which was transformative. But that support stopped at the transition of the federal government, which forced me to look towards the continent again, through the notion NOAA Ocean Enterprise Accelerator. This exposed me to ocean cluster organizations, which Hawaii is not. And so I had to go back to the continent.

So, if we're able to designate Hawaii as an ocean cluster, we might be able to get that funding and bring more companies back to Hawaii like that. I strongly support this this bill relating to marine affairs. Thank you.

Thank you. Anybody else wishing to testify in this measure?

Hello, [Foreign Language]. Good afternoon, Chairman, Vice Chairman, to our members of the committee. My name is Joshua Baghdadi, and my career is a testament to the power of the blue economy to connect ideas, activities, and people for the health and sustainability of our blue planet. I'm here because I wanna testify in strong support of Senate Bill 2907 to establish Hawaii as an ocean cluster. I was homeschooled in the coastal state of South Carolina and studied electrical engineering at Clemson University.

In graduate school, I was fortunate enough to work on a project funded out of the Office of Naval Research investigating the use of semiconductor lasers for underwater wireless communications. While presenting my work at a marine technology conference in California, I met a physical oceanographer and ecologist who was out of the US Coast Guard. He became my mentor on all things relating to the ocean.

I was intrigued by the linkage of technology and marine sustainability that I found in this community, and I decided to pivot my career in this direction. My mentor introduced me to Margaret Edwards, who is currently serving as the Director of the Applied Research Laboratory here at the University of Hawaii.

I started my career out here in Hawaii after graduating with my degree in electrical engineering from the Mainland. I began here in 2017. So over the past decade, I've been involved in a myriad of marine related projects from ocean sensing with robots, buoys, and undersea cables, to supporting ecology studies for Hawaiian green sea turtles in Pearl Harbor. I've also been involved at the national and international levels as an ocean advocate.

Like Dory mentioned, I helped cofound the Marine Technology Society early crew ocean professionals program, and I've also been involved with the United Nations Ocean Decade Early Career Ocean Professionals Program.

We're currently at the midway of the UN Ocean Decade running from 2021 to 2030. I was fortunate enough to be in the room at the United Nations Ocean Conference in Nice, France this past June 2025 when about 30 countries adopted the high seas agreement to establish marine protections beyond areas of national jurisdiction. All this exposure and experience have convinced me that the blue economy is society's pathway to sustainable development in the twenty first century.

And I look forward to working with the state to catalyze a new area of development for us, for the state looking forward. Thank you very much.

Joshua, can I get a copy of that? I don't believe you had the testimony submitted.

That's right.

Thank you. Thank you. Anybody - go ahead.

Thank you for the opportunity.

My name is George Yarbrough. I stand here in supporting of 2907. Maybe I would just kinda color in my testimony that I support.

That'd be nice.

Yeah. I ran the the Office of Innovation Commercialization programs for, where I supported a lot of these programs and and entrepreneurs. I led the state in an opportunity to get $15 million to support Ocean-Based Climate Resiliency Accelerator Program, the one that he is going to the Mainland for. We got to the final stage. They were they were excited to have Hawaii be part of the group that was in the final stages.

In the end, we did not get it. The feedback was essentially your system, your ecosystem isn't ready yet. So for the last two years, I've been working Doreen and the people behind me to get us to that stage when there is an opportunity like this NOAA federal grant, monies can come to our state to help build jobs, help build ecosystems and technologies, that we're ready. That coordination is necessary, and that's what this bill is about. Thought I maybe would just add that to my testimony.

Thank you so much.

I didn't see you submit testimonial online.

Oh, I mean, it said it did.

I don't understand. Let's do it.

I checked yesterday.

I'm happy to send it to you.

If you can, please. Anyone else wishing to testify? Please state your name and...

Hi. I'm Brennan. I submitted testimony, but it might have came in late. But please review if you have the opportunity.

Yeah. Just want to add some additional perspective. So I'm a local guy, a proud graduate of the Honolulu Public School System, and as well. I spent fifteen years there. I got my Bachelor's, Master's, PhD in Engineering, studying maritime robotics, and then I work with the applied research lab, doing work for the Navy.

I consider myself very lucky. I had, you know, a lot of opportunity to follow my dream here in Hawaii and work locally. But I realized that that's not an opportunity for a lot of people because the industry doesn't exist. I think about twenty years ago, there was a very conscious decision made by community people here to make Hawaii a early adopter of scholastic robotics programs in our public schools.

I think that's benefited, greatly, sort of a cohort of scientists and engineers that I identify myself as part of to study science and technology.

The unfortunate side effect is, we're now exporting engineers to the Mainland to work jobs that they were trained, you know, and born and raised here to do. So, I think, I feel very strongly that, you know, it's my duty and the community of the people behind me to, help build the industry to meet the need of these people, you know, who are working very hard and, pursuing opportunities that were, they were born and trained here to do.

So, strongly support this bill and happy to answer questions. Thank you.

Thank you. Anyone else wishing to testify?

Aloha, Chair, Vice Chair, and esteemed members of the committee. My name is David Holt. I'm the Program Director at Blue Startups. Mahalo for the opportunity provide testimony and support of SB 2907. Blue Startups was founded to help diversify Hawaii's economy by building stronger technology sector.

For more than a decade, we have supported entrepreneurs building companies in Hawaii. Blue Startups is launching an ocean tech program this summer designed to position Hawaii as a global test bed for ocean innovation aligned with HTDC's ocean technology priority. Hawaii's ocean and coastal strengths have the power to touch energy, food systems, transportation, climate resilience, research, and tourism.

We strongly support the committee to pass SB 2907 and advance it to the remaining referrals to further the work that we have done for the last fourteen years. Mahalo.

Thank you. Anyone else wishing to testify in this measure? Seeing none members, any questions? DBEDT?

Chung. So, Chung, it's been fifty two years since DBEDT published a landmark report, Hawaii and the Sea, in 1974; that was designed to guide the state's marine policy and economic development. That report included many of the economic and policy issues we're still addressing today. The first office, Marine Affairs, was established in 1974 and reported to the governor. DBEDT published a report that year, Hawaii and the Sea, which contained similar objectives relating to ocean related economic development.

So, this bill proposes is not new. What have we done in the past fifty two years since that report was published?

Thank you so much for that question. Do we have? So let me call up Sonia Romero, Economic Development Specialist. I'm new to this, but I am learning that there are - it's great to have answers prepared to certain questions, and I think we do have an answer for something like this.

Yeah. Thank you so much for that question, Senator DeCoite. So, from my understanding, there was about $5 million I was invested into that Office of Marine Affairs Commission. And from that about $7.2 million of federal funding that was able to come into the state. So, we do see that there was positive economic impacts for Hawaii, with this Office of Marine Affairs.

Ultimately, that position was winded down, but what we do see is across Hawaii over the past fifty years, our blue economy has grown by about 23%. It does make up a 100,000 jobs, which is about 16% of all jobs locally, and it makes up about $10 billion. I think another really interesting point to bring out is what's happening in other states that have created this cluster model. So in Washington, for example, they created their cluster in 2018.

Their blue economy has been able to grow by about 40%, double about what Hawaii has been able to achieve. And so, ultimately, we really think that it's important to reinvigorate this Marine Affairs Commission in order to achieve similar levels of growth.

So, in your opinion, what do you think is the going rate for that position?

So, I think my understanding is that a position like that will probably take around a $100 to $200,000 to adequately pay someone to do a task like that.

I think you're low balling that. I think with the amount of - I mean, in 2030, I'm assuming this, we're talking trillions for the blue economy. So I mean, if I mean, I think you take a lowball approach. I think one position like this should be a lot higher, don't you? To attract the type of?

Yeah. And and I appreciate those those comments, Senator DeCoite. And and, ultimately, I think to your point, in in a lot of these other cities, these offices have not just one position, but staffs of five to 10 people. And so, I think we're taking - you're right.

A relatively conservative approach to start just to get our feet settled to have a plan with one position and then ideally scale from there.

Okay. Thank you. Any anybody else have questions? Okay. Seeing none.

Thank you. Thank you. Moving on. Next up, Senate Bill 2,595 relating to Agribil Agribusiness Development Corporation. First up, Wendy Gady for Agribusiness Development Corporation.

Good afternoon, chairs, vice chairs, members of the committee. I'm Wendy Gady, the Agribusiness Development Corp Executive Director. And we stand in support of this measure. But my comments that I'm gonna make are probably very aware for anybody in ag, but an acre is not an acre is not an acre. So depending on if you're using ag acres for pastoral use, it has one rate.

If you're using it for diversified crop, it has another. So I just wanted to be clear that an acre is not an acre is not an acre. And I'm here if you have any questions. Thanks.

Thank you, Wendy. Next up, Craig Nakamoto with HCDA.

Good afternoon chairs, vice chairs, members of the committees. Well, I want to just provide testimony and support with comments. Maybe just, provide some input. Our involvement is related to the, Central Wahoo, agriculture and food help located in Woodmore Village. We are assisting ADC in the as a project manager to develop the food hub.

In that regard, I understand the intent of the bill to require ADC to charge fair market rents, but I would suggest that sometimes rents are sensitive on the use being put. So, for example, at the food hub, one of the uses being suggested is a workforce housing, build workforce housing. Depending on the AMI target for their workforce housing, the rent charged on the ground. These may have to be less than fair market value to make that affordable housing workforce housing pencil out.

In another example that I stated, if the food hub was going to put on, like, a kind of a fair or some kind of a vendor event for a one day thing, you know, maybe that would justify a lower lead than market lease rent in exchange for the nonmonetary gains that could be received by that kind of event, like publicity, marketing, promoting agriculture at the like.

In other words, sometimes a flexible leasing policy might be better than a more rigid leasing policy. Thank you. Chair in the place. Cheers.

Thank you. Next up, Hunter Hevelin with Hawaii Farmers Union.

Thank you, chair, chairs, vice chairs. Hunter Heblin on behalf of Hawaii Farmers Union. We offer some written comments on this measure, but highlight that when the Agribusiness Development Corporation was formed in 1994, its intent was to support both local markets and export markets. In the intervening decades, we've finally seen a swath of agricultural land be collected for diverse agricultural use ideally.

My concern with this measure as written is that it proposes to slant the various subsidies that we have from the state for agriculture towards a certain scale of production.

Only those who are at a certain scale can reasonably produce at the reimbursement rates that the department of education receives from the United States department of agriculture for our school food programs. So if you are at a scale of that production, this now proposes to further enable you to access agricultural lands from the state.

And, unfortunately, part of what I see arranging in a lot of this effort to increase our local productivity and increase our procurement is the removal of access to a lot of these forms of subsidy, be they land, be they processing, maybe even market access as a result of that processing or the orientation of some of our procurement processes over the past, say, ten years of effort in Ainopono.

So while we recognize the state, you know, was trying to balance its books and we wanna support a variety of agricultural operations at different scales, I believe that this measure as currently written could unfortunately slant and further limit smallholders from accessing the former subsidy that comes in state land leases. Thank you for the opportunity to testify.

I'm happy to answer any questions.

Thank you. Next up, Glenn Kagamira in support. Hawaii Farm Bureau.

Thank you, chairs, vice chairs, members of the committee. It's Brian Miyamoto here on behalf of the Hawaii Farm Bureau. You have a written testimony providing comments. I just want to make sure you did know that I am Brian Miyamoto, Hawaii Farm Bureau. People have been saying Hunter and I were in the same clothes.

He's the one with a mustache with the same physique. We echo many of the concerns of, the Farmers Union. It's well known that the Hawaii Farmer supports Farm to School, supports regional kitchen, supports FPINs. However, not all producers actually participate in farm to school, participate in FPINS. Ag is very diverse.

As you heard, nursery, coffee, hemp, maybe even Bob feels camelina may not participate, and they would be at a disadvantage and, and actually have higher than market value lease rate. We we agree with incentivizing, producers so that we can target the DOE purchasing, institutional purchasing, f pins. Absolutely. But this may be a penalty to those who actually are producing the food for Hawaii, producing the food and value added for exports and other sectors of our economy.

Even the the blue economy that we heard, maybe some of those products projects, right, that ADC is looking at may not produce ag products that actually go into the DOE or into value added.

We hope a lot of them do, but they may not. So we just again, we support these programs, But we're just concerned that this may not be fair for some of the other producers who maybe aren't participating in that. So find an incentive. If we can't tell the farmer what to grow, we can incentivize them what to grow. And let's find a a positive incentive that we can offer so that we can have those supplies into these programs.

Thank you for the opportunity to testify.

Thank you. Anybody else wishing to testify on this measure? Seeing none members, any questions? Quick question for ADC, please. Wendy, at what rates do you currently lease, license, or rent your properties?

So we had done a market appraisal in the last, year, and in the past, it was basically determined by the board. And based on that, different islands have different rates. So in the case of, where our current tenants are at on Oahu, it's somewhere in the neighborhood of $150 to $450 per acre per year. And the appraisal rate came in at $1,800 And on the case of Kauai, current rates and I'm talking more about diversified because pastoral was definitely cheaper.

It's in the range of $350 per acre per year, and the appraise that is what the appraisal came in, but our market rates are our current leases are between $150 and $250 But some of the licenses that we have are very long term, you know?

So we may be in year five out of a thirty five year license. So there's very few opportunities to reopen or adjust that rate. So it really would move more towards

So do you currently have an employee on the board who's qualified to appraise properties?

No, we actually go out to bid for that. Okay.

Thank you. Anybody else? Wait questions. Seeing none, short recess.

Thank you. Anybody else? Wait questions. Seeing none, short recess.

Thank you. Thank you, members. We are decision making on today's agenda, the three zero one agenda with EDT and AAN. First up, Senate bill 2,374. We are gonna pass sorry. I'm gonna defer decision making on this measure.

I wanna wait to get the information back from DBEDT. To next week, Tuesday at one, February 17 in Room 229. Sorry.

It's okay. And for AM, we'll we'll meet on February 18 at 03:05 in Room 224.

Thank you. Next up, Senate Bill 2907 relating to marine affairs. We will be moving this bill out. The bill states that the blue economy is projected to double to an estimated $3,000,000,000,000 by 2030. Hawaii should be leading the nation in developing our blue economy.

Toward this end, I would like to pass this bill with an SD one by having the salary of the marine affairs coordinator set by the governor on page 10. And on page 19, placing the office of marine affairs in the governor's office, blanking out the 150,000 appropriation, having the sum appropriated, expended by the governor's office, and on page 13, inserting December 1 as the date to submit an annual report and defecting the date to 07/01/2050.

Note in the committee report that the marine affairs coordinator position shall be paid no less than the dean of the school of ocean and earth science and technology, and this and that this position may be combined with the position at the University of Hawaii and jointly funded by both the University and the Governor's Office. Members, any questions? Any discussion?

Sorry. Seeing none, vice chair for the vote, chair

goes aye. I vote yes. Senator Fucunada excused.

Senator Kim excused. Senator Fevella?

Aye. Chair, your recommendation's adopted.

Thank you. Same recommendation for AEN. Any discussion? Chair votes aye, vice chair

votes aye. Senator Cook? Aye. Sarah Rhodes? Aye.

Sarah Waugh? Aye. Chair, five in favor. Motion to adopt.

Thank you. Next bill, Senate Bill 2595, relating to Agribusiness Development Corporation. We're gonna be passing this with an SD one by amending the language on page two to correct a drafting error that would repeal the ADC's power to sell any real personal or mixed property acquired since this was not the bills intent and defecting the date to 07/01/2050. Any discussion? Seeing none, vice chair for the vote, please.

Chair goes aye.

I vote yes. Senator Fukunaga, excused. Senator Kim, excused. Senator Fevella. Aye. Chair, your recommendation is adopted.

Thank you.

Same recommendation for AEN. Any discussion? Chair votes aye, vice chair.

On Senate Bill 2595 passing with amendments of the five members present. Is that right voting with reservations? Any no votes? Chair, you have five in favor. Motion adopted.

Thank you, members. Thank you.

And with that, we are adjourned. Thank you.

Alright. I'm dabbling in the three zero five What's that one? Agenda with hearing with AEN and CPM for decision making. So on this measure here, we're conferring the chairs have been conferring on this, and we're going to roll the decision making on this until Wednesday, February 18, at 03:05PM in Room 224. We'll adjourn 03:05.

Alright. Gambling in the, AEN hearing at 03:10, and we have first up, we have SB 3162 relating to strategic food reserves, establishes the strategic food reserve program within the DAB, establishes purchasing requirements for crops stored at a strategic food reserve, establishes strategic food reserves advisory committee, etcetera. We'll start off with DAB to testify. We have DAB here. You're in support.

Next, we have Travis Moon with or Christopher Liang with the Attorney General's Office.

Good afternoon. Deputy Attorney General, Travis Moon. We provided our written comments and I'm here if you have any questions. Thank you.

Thank you, Travis. Next is Hawaii Farm Bureau.

Good afternoon, Chair, Vice chair, members of the committee. Brian Miyamoto here on behalf of the Hawaii Farm Bureau. You have a written testimony in, of supporting the intent. Wanna start off saying we actually love this program. We love the concept, what it's trying to accomplish.

The implementation is something that we may be a little bit, concerned with. We love that it has nexus and synergy with the regional kitchens, HPP machine, ADC infrastructure. But, again, I think we're talking about aggregation, cold storage, inventory rotation, food safety compliance, transportation logistic, and workforce capacity are very complex.

We actually have some that already do that. Some are distributors, not suggesting work with the distributors, but the scope of what this is asking for is huge.

It's a great idea. I think, DOD is talking about it. I think Chad Buck, HFA is talking about it. The Senate, we've heard them talking about almost emergency preparedness using local foods, but this is not only non perishable, but we understand there's also, fresh crops that might be part of it. The whole idea is really great.

Rotating it in and out for emergencies and then going to the food banks, the food pantries, meals on wheels. If the the this continue to move forward, we do suggest that given inclusion of locally produced proteins, maybe one of the committee members could be someone from the livestock industry.

We didn't see that included. We do see that there is farmers and farmer organizations. But also, again, talking about blue economy, if aquaculture is gonna be part of it, maybe somebody for aquaculture industry.

We don't like large working groups or committees. But again, I'll make sure that we have complete representation for something like this, which we really support. This is a great idea, and we commend the, chair as an introducer. I really like this idea. I think it's something that we need to really focus on.

So thank you for the opportunity to provide testimony.

Thank you, Brian. And I just wanna remind you that we have a 05:00 hard deadline, and there's 11 measures on this agenda. So if you would like to stand on your testimony, that would be fine.

Next is Hawaii Farmers Union. Hunter Heaivilin

Wish I could abide that request. Hunter Heaivilin on behalf of Hawaii Farmers Union. As, we provided written testimony. We support, you know, the intent but offer a a number of comments. This proposes the Department of Agriculture and Biosecurity take on a whole new stream of work, which is warehouse management.

With a personal background working at the nexus of food systems disasters and planning. This is really a large scale planning effort and a proposed method alternative to the Department of Agriculture administering this would be to pursue vendor managed inventory.

This effectively draws upon what has happened in these islands already during the mid century, say, generation or so of dock strikes. Distributors and others took it upon themselves to store excess capacity and carried that cost off to consumers.

We can imagine a much better functioning system to accomplish numb, numerous goals outlined in this by working with the existing network of warehouses, rotational inventory management, and otherwise that is happening day in and day out through our food hubs, through our grocers, and through our distributors.

So while we support the intent, I think the current proposed mechanism, and particularly the departments that would be saddled with coordinating this effort, needs some serious reconsideration. Happy to answer any questions, though I imagine that won't be the case based off of timeline. So I'll wrap early. Thank you.

Thank you, Hunter. And we have Lauren Zirbel from the Hawaii Food Industry Association on Zoom.

Oh, Good afternoon, Chair, Vice chair, members of the committee. My video will not start for some reason. I'm Alexis Chapman for Hawaii Food Industry Association. Oh, there I am. Hello.

So just we are in support of this measure, but to echo and perhaps expand on some of the sentiments of the previous testifiers, we did include in our testimony that obviously working with the local producers, manufacturers, suppliers, distributors, and retailers before disaster strikes is an essential component of statewide preparedness.

And as part of this program or maybe in lieu of some of the current components of this program, we would absolutely suggest creating memorandums of understanding with the existing network.

So with the existing food suppliers, distributors, storage areas, and retailers who are already expected to and have already proven an ability to respond in case of a disaster. So that's it for us, but I'll happy to answer any questions. Thank you.

Thank you. Alexis. Next is, Nicole Galase from Hawaii Cattlemen's Council on Zoom.

Thank you, chair, vice chair, members of the committee. Nicole Galase on behalf of the Hawaii Cattlemen's Council. We submitted testimony in support, because this is a proactive bill to make sure we have food available for our local families. This is something Hawaii Cattlemen's Council is prioritizing this year and Hawaii Hispaniola look forward to participating in this to streamline the process of getting high quality protein to the community.

And we'd also welcome being included in the advisory committee as the supply chain of beef differs from other crops. Mahalo.

Thank you, Nicole. Next is Tam Hunt from Think B.I.G. LLC.

Not on Zoom, chair.

Not on Zoom. Anyone else wishing to testify on this measure?

Are there any questions, members?

Okay. Moving on to SB 3256, establishing the Hawaii Ag Transportation Assistance Program to consist of a reimbursement program and a grant program within DAB to assist certain farmers and livestock producers with transportation costs for Ag products, input supplies, and product production and distribution of Ag commodities.

Okay. Fifty two fifty six. First up is DAB. You're not here. K.

In support, Hawaii Farm Bureau. Brian?

Thank you, Joe. The Hawaii Farm Bureau has done on its written testimony in support.

Thank you. Hunter Hevila, Hawaii Farm Bureau.

Thank you, Joe. Hawaii Farm Bureau. It says, it's written testimony in support and seeking a couple of definitions.

Thank you. Lauren Zirbel from Hawaii Food Industry Association on Zoom.

Good afternoon again. HFI stands on our testimony in support. Thank you.

Thank you, Alexa. Nicole Galase from Cattlemen's Council on Zoom.

Thank you, chair. Vice chair, we Hawaii Cattlemen's Council stands on our testimony and support, but I'll add that the federal RTCP program, which the bill refers to, many ranchers are able to use this, but it's meant to cover 25% of transportation costs. Because of the cap that's there, a lot of times, some of the ranchers only get about 1% of the cost covered. So this state program would complement the federal program, and there is a need for it.

Mahalo. Thank you, Nicole. Anyone else wishing to testify on 3256? Seeing none members, any questions? Alright.

Moving on to SB 2741. Phases in exemptions of locally produced food from the general excise tax. First up is DAB. Out here still and they're in support. Mei Muy Haley Callahan, deputy attorney general.

Good afternoon, chair, vice chair, members of the committee. My name is Haley Culhane. I'm the deputy attorney general for the AGES office. We provide our testimony on the common cause issue. Thank you for this opportunity to provide testimony.

I'll be happy to answer any question that your committee may have on this measure.

Thank you. Thank you. Brian Miyamoto from Hawaii Farm Bureau.

Thank you, sir. The Hawaii Farm Bureau is down on this written testimony and support.

Thank you, Brian. Hunter Hevelin, Hawaii Farmers Union.

Thank you, chair. Farmers Union offers testimony in support of the intent of this measure. However, similar to the previous oral testimony provided, we highlight that there are constitutional concerns. Over the past handful of years, we've put forward a number of measures that would address general excise tax and measure and approaches that would support our agricultural industry without confronting or without facing the same issues of constitutional concern.

Primary mechanism that I that I would recommend is that when the general excise tax was implemented, studies were done at the time that reviewed a papaya, egg, other agricultural industries that found that that tax pyramiding would indeed be the outcome.

37 other states exempt from sales tax machinery, feed, fuel, agricultural chemicals, seed, etcetera. Our state taxes all of those things multiple stops along the way to the farm gate. So we can simultaneously reduce farm costs and level the playing field that we have with every imported product coming from The Mainland United States, and simultaneously avoid some avoid some of the commerce clause opportunities. I've referenced a couple of bills that relate related to how that was done prior, and happy to answer any questions.

Mahalo, Thank you for the opportunity to testify.

Thank you, Hunter. Next is, Hawaii Food Industry Association. Alexis?

Good afternoon again, chair, vice chair, members of the committee. We are in support of this measure. We would also, again, to avoid the interstate commerce clause issue, support expanding to include all, food to be exempted from the GET, and there's a few vehicles for that currently moving. I'd be happy to answer any questions, and thank you for the opportunity to testify.

Thank you, Alexis. Next is Nicole Galasse from the Cattlemen's Council.

Thank you. The Hawaii Cattlemen's Council stands on our testimony in support.

Thank you, Nicole. Next is Tom Yamachika from the Tax Foundation of Hawaii.

Not on Zoom, chair.

Okay. Anyone else wishing to testify on this measure? Yes. Please go forward. State your name.

Good afternoon, chair, vice chair, committee members. Garrison Kurth, Department of Taxation. I apologize. Our testimony did not get into you, but I believe you might have a copy. Quickly, just to summarize, there's just two main points we wanted to make.

We've certainly will work with DAB to facilitate making this work and we would defer to them as far as their expertise on, certification of producers and qualifying products. Other than that, there's, effective dates in the bill July 1. We just ask that they be moved forward to January 1 of the following year to give time for all the updates that we needed to administer. Thank you.

Thank you very much. Anyone else? Members, any questions?

Yeah. DAB. Very good. Thank you, Chair DAB. Okay.

So, Chair, just wanting you to know, I actually had questions for the prior bills, but, you know, with Dab missing, it's hard to have those questions answered. So, just for the record, thank you.

Thank you. Okay. Moving on to, SB 2805, establishing a nonrefundable income tax credit to incentivize significant investment in ag production and support the expansion of ag crops that take longer to become productive. ADC, Wendy Gadey?

Sure. ADC stands in support.

Thank you, Wendy. DAB, still not here. They're in support. Hawaii Farm Bureau, Brian.

I'm sure the Hawaii Farm Bureau is down on successful order in support.

Thank you, Brian. Hunter Hevelin, Hawaii Farmer Union.

Thank you, Chair. Farmers Union stands on its written testimony in support. Again, expressing concern and this lands towards larger well capitalized operations.

Thank Thank you. Tanya Machika from the Tax Foundation on Zoom.

Not on Zoom, chair.

Okay. And anyone else wishing to testify on SB 2805? Please come forward.

Thank you, Piper. Department of taxation.

I apologize that, we did not get written testimony to the committee. I do have, three comments on this bill. The first one would be as to subject matter expertise and the cap, the Department of Taxation lacks the subject matter expertise to oversee this, and we are unable to oversee caps. We would ask that a certifying department with substantive expertise certify and oversee the cap. We do have a concern with regard to the effective date.

We would recommend the bill be amended to apply to taxable years beginning after 12/31/2026 to allow time to make implementation for instruction changes and promulgate rules. And then finally, as far as the carry forward, would ask that, we include a sunset provision for the carry forward provided that no credit may be carried forward for more than five years after the initial claim for credit is made under this section simply to ensure that, these carry forward credits are not dangling out there indefinitely. Thank you, and I'll be available for questions.

Thank you very much. Anyone else? Members, any questions?

The person not here, I guess.

Yeah.

Okay. Moving on to SB 2704. Establishing within DAB a temporary subsistence plus gardening pilot program. And first up is DAB: absence. Hawaii Farm Bureau, Brian Miyamoto.

Thank you, Chairman. Hawaii Farm Bureau with testimony and support.

Thank you, Brian. Hunter Heaivilin from Hawaii Farmers Union.

Farmers Union offer their testimony and support.

Thank you. Mason. Don't have a last name?

That's me.

That's you. Come on forward.

Hello, everyone. My name is Mason, and it's a privilege to be in front of you guys. Before I start, just wanted to say to Mahalo to Mike Gabbard and Cedric Gates and the entire committee for their support and introduction for this bill: SB 2704. So when I met uncle Danny, this is about a year and a half ago, And the first time I harvested and cooked my own food, something shifted. It was like a cup of coffee.

Something kinda woke up, and I felt nourished in a way that I hadn't really felt before. And since then, we've actually created a a little community. And we've been using social media to outreach and get people activated and growing their own food. We actually have an active prototype of this bill running already, and it's kinda crazy. If you were to show up to one of these workdays, you'd see people who have never even been in a food system before.

And they're here. They're active. They wanna participate, but we need access. And so what this is telling me sort of is that the time is right for this bill, and people want this. And and what we're doing here isn't anything new.

Right? Like, this idea of communities centered around growing food, it's been around longer than all this. It's very human. It's a human thing. So, we're working with Cedric on the draft, and we would just ask, your consideration.

And we appreciate you guys giving us this opportunity. Much mahalo. If you guys have any questions, we're in the back.

Thank you very much. Anyone else wishing to testify on SB 2704? Please come forward.

Good afternoon. Mahalo, Chair and committee members. My name is Danny Bishop. I've been involved in trying to, address the the food insecurity issues, since I started having children.

My oldest son is is almost 50 years old. Been involved with the movement to bring Loi Kalo back to front of our food environment here and also the taro purity security task force was involved with that. So, I did write in written testimony. I'd like to stand on that testimony, but also add and reaffirm something that Mason, the previous testifier said.

There is a huge need for younger people to get reinvolved with their environment, a healthy food systems, and a healthy environment to raise their families in.

So, that's one of the main goals of this concept is that people the focus is not necessarily on growing food as a commodity, as a cash value, but the focus is to bring healthy food back into their diets and still being able to create an economic surplus within their parcel so that they can add to the economy, not just with food, but with cash. Anyway, again, thank you all. I do have some late testimony. I have a if I can submit?

Can you just leave it right here? Okay. Thank you.

Thank you.

Take care of it. Thank you very much, Dan.

Thank you. Appreciate it. Very much.

Anyone else? Members, any questions? Moving on, SB 2174 relating to AG authorizes dad to declare an emergency quarantine when it has been reasonably determined that there's a threat to the environment and state, authorizes the department to halt operations related to or within the affected area for ninety six hours, subject to extension by vote as a board of ag and biosecurity.

And by the way, on the SB 274, the measure we just heard, there were 26 testifiers in support, zero opposed, and zero comments. So twenty one seventy four, has DAB arrived yet?

No? Okay. They are in support. Patrick Chee.

Aloha, chair, vice chair, and members of the committee. The Department of Land and Natural Resources and the Hawaii Invasive Species Council stand in strong support of this bill. We believe that it's important for there to be a means to act quickly to contain threats of invasive species, and this would allow for that.

We support also the expanded authority of the Department of Agriculture and Biosecurity to regulate transportation of goods within the state, as well as its ability to quarantine a business or an area known or suspected to harbor an invasive species infestation. So early containment of invasive species can significantly reduce the time, effort, and cost required in order to resolve such threats, and we, again, strongly support this bill. Thank you.

Thank you, Patrick. Cedric, we'll take DAB now. Okay. We're on SB 2174.

Aloha, chair. Cedric Gates here on behalf of DAB. DAB stands on his written testimony offering support to this measure. We're here for any questions.

Thank you, Cedric. Stephanie Easley from, CGAPS.

Aloha, chair, vice chair, members of the committee. I'm Stephanie Easley with the coordinating group on alien pest species. We have submitted written testimony in support of this bill. It provides a great tool to allow the Department of Agriculture and Biosecurity to get ahead of an infestation once it is detected. We provided two amendments for your consideration.

One is we really love the language that's proposed being added to Section 140 one-three that includes animal disease and any invasive species. We suggest mirroring that in the amendment to 150A-eight. For instance, the two lined spittlebug was not on any list of pests until last year. The next nightmare pest that comes to our shores might not be on a list. So having that language mirrored would allow this authority to apply in that situation.

And then also just, suggest expanding the four day time period for logistical reasons for the, Board of Ag and Biosecurity to take a vote. I'm here if you have any questions. Thank you.

Thank you, Stephanie. Brian Miyamoto, Hawaii Farm Bureau.

Thank you, General Hoyt Farm Bureau.

Governor Heavilon from Hawaii Farm use Farmers Union. Representative Santel

Has written testimony on my colleagues.

Anyone else wishing to testify on this measure? Members, any questions?

I have a question. Chair. Senator. DAB. While you're walking up, since this is an emergency quarantine, is it feasible to rely on the Board of Agriculture to convene a meeting to enable the department to extend the quarantine more than ninety six hours?

And then shouldn't the department be able to make this determination without leaving that ninety six hours?

Jonathan Ho. I'm plant quarantine branch manager.

So

yeah. So, with regards to, obviously, the, 92 issues with notice for the emergency meeting, depending on the pest and the level of infestation, we believe that making a determination to expand or not could be done in that time frame because you would you would get an initial detection. Depending on the pest, you would do the quarantine survey for to determine extent, and then you would either you would then have to make the decision.

Because, obviously, if you find it on multiple properties, things like that, and either go bigger or go smaller, or or you'd have to change, all

the So so you wouldn't need board approval, you could just make a determination, right, yeah?

So, yes, I I believe that you could be able to do it, again, depending on the pest,

and the ability to find it.

What pest would cause you not to make a determination?

So I don't think it's necessarily the pest. It's so I think so, like, so for example, say we found,

Yeah. But you just said depending on the pest.

Oh, no. So sorry. The so the pest and the level of infestation. So, for example, we use CRB in Molokai. K?

So somebody reports c m the CRB on Molokai. We would come out. You would you if it to move it forward, you would quarantine that particular property. You would start doing surveys. If you started finding surveys you did the survey, you found them in the entire property.

It's very likely it's outside the property. And then, right, you're gonna just go out go out, and then if you find it everywhere, obviously, quarantining individual property doesn't make sense, so you're gonna have to do a different set of management. Right? But if it's not just that single property, right, we're gonna be able to know that you can implement quarantine measures for that like, for example, it's in a single pile. Right?

We could come in, do emergency procurement, treat immediately.

So, Jonathan, if that pile is, I don't know, 10 by 10 by 10

Yes.

The pile is expanded out to the 10 by 10.

Yes.

What's the difference between that and then the properties that are connected to each other? Because, basically, if the 10 by 10 folds, it went it expanded out.

Correct. And and, again, I think it goes back to, like, what you find. Right? If you find just two or three

So so every

Well, no. No. No. But, again, like, I think, like, if you open it up and you're finding hundreds of grubs, all life stages eggs, right, that is a very different as opposed to finding first instar only.

So so I just gonna say

means that we can't get If a

10 by 10 by 10 get is infested with Serbia. I'm sure you're gonna find the larvae or whatever else is gonna be there. So my question is, would that justify going back to going to the board to to a full approval, or can your department just say, hey. We're just gonna knock this thing?

No. Yeah. We would just keep going. We we we wouldn't go to the board. We would we would deal with it.

I I don't believe that you would go back to the board. It just it takes away time from doing the eradication.

Okay. Thank you. Thank you, John.

Thank you, chair. DAB stands on it's written testimony in support. I'm here for any questions.

All right. Moving on to SB 2885, beginning 01/01/2027, establishes mandatory handling and storage rules for commercial and residential coconut rhinoceros Peter Host material to reduce the spread of CRB within infested zones and to prevent spread into non infested zones. First up is DAB.

Thank you. Next is Stephanie Easley with CGAPS.

Oh my goodness. Sorry.

Aloha, vice chair, members of the committee. My name is Stephanie Easley with the coordinating group on alien pest species. Thank you for the opportunity to be here today. We are grateful to

the introducer of of this bill, and we support this bill. Any actions to control CRB are desperately needed as it continues to spread across the islands, and I'm here if you have any questions. Mahalo.

Thank you. Brian Miyamoto, Hawaii Farm Bureau.

Brian Miyamoto in Hawaii Farm Bureau stand in its written testimony in support.

Hunter Heaivilin, Hawaii Farmers Union.

Hunter Heaivilin, Hawaii Farmers Union [inaudible].

And Joy Leilei Shih-Casado on Zoom.

Aloha, Chair Gabbard andVice chair Richards. I stand on my testimony and strong support, strong support with comment only that the most important aspect of this bill is that it's grounded in science targeting the most effective method to manage coconut rhinoceros beetle and that Hawaii is in dire need of a cohesive and comprehensive management plan. The current patchwork efforts have vulnerable, vulnerabilities that leave us susceptible to CRB spread and persistence. Mahalo.

Thank you. Anyone else wishing to testify on SB 2885?

Patrick?

Patrick Chee, Department of Land and Natural Resources and the Hawaii Invasive Species Council. Hopefully, we you got our written testimony. We do have some comments. We believe that the management methods that are mentioned within this measure could and should be expanded. We suggest that the bill looks at the crbhawaii.org's list of treatments for breeding material in order to potentially add more to that.

The department also supports CRB management across both residential and commercial operations, as well as we would advise that the within, I think it was paragraph h on page nine of this measure, It mentions the need for a hotline.

But already, the 643pest.org website, as well as 643pest, the hotline phone number, could potentially serve as that means in order to report the coconut rhinoceros people. Thank you for the opportunity.

You did not receive your testimony. So if you could resubmit it, I'd appreciate it.

Okay. We will.

We will. Thank you. Members, any questions? Moving on to SB 3012, requiring as condition of entering to the state documentation verifying that any dog or cat imported into the state has been surgically sterilized subject to certain exemptions. First up is Patrick Chee.

This is for 3012. Okay.

Thank you, again, chairs, chair, vice chair, members of the committee. This bill is is important that we are attempting to try and prevent the spread of of unsterilized animals in in the state. We believe that this importation bill would encourage people to to have their animals to be spayed or neutered before they come to the state. We also believe that, oh, well, we also note that the, there have been, in fiscal year 2024, there were over 20,000 animals that were imported into the state.

And this is a significant amount of animals that could potentially be, essentially given a chance to be sterilized before they come to the state and potentially pose an issue when they get here.

So thank you for the opportunity.

Thank you, Patrick. Gabb.

Hello, chair, vice chair, members of the committee. Cedric Gates here on behalf of DAB. DAB submitted testimony in opposition, but we'd like to change our testimony for to comments. We support the intent, but we have concerns with the challenges of implementing this. We have since been in conversations with the author of the companion of this measure to try to find workarounds and compromises to this measure, so that it can be implementable on our end.

But we're here for any questions. Mahalo.

Thank you, Cedric. Len Muramaro from Pacific Pet Alliance.

Good afternoon, senators. The Pacific Pet Alliance,

Could you state your name, please?

My name is Lynn Morimaru. I represent the Pacific Pet Alliance, and, we are in strong opposition to this bill. We certainly understand the intent of the bill, you know, with the free roaming animals and and the pet overpopulation. However, you know, we find that there is a lot of question as far as the hard data that's that's been submitted. Like, mister Chi's, testimony said that there were over 20,000 dogs brought in.

You know, I wonder, like, do you do you know how many of those dogs were already sterilized ahead of time? No. Do do you know how many of those dogs are connected with the military TSA? You know, Aye, for example, I exhibit my dog on the Mainland. So I may travel several times to go to the Mainland to exhibit my dog.

So, if my dog went to the Mainland six times last year, is it is he counted six times in that 20,000? You know? And there are quite a number of exhibitors from Hawaii that go to big dog shows in Orlando, Westminster, and so forth, and we take our animals with us. And every time we leave the state, we come back. So, you know, if, if 50 dogs leave, you know, that live here, are they counted again?

You know? There are just so many questions. And then the other part of this bill that we, strongly object object to is that, is that as far as a, breeder registry goes, we're asked you know, the the bill asked us to agree to something where where it says that fees and rules are to be determined later. So you want us to agree to something that we don't know what we're agreeing to.

Your time's up. Thank you very much for your time.

Thank you very much.

Thanks, Nat. Next is Bob Rilling Smith with the American Kennel Club on Zoom.

Not on Zoom, chair.

Thank you. Aisha Aoki on Zoom with the cat fanciers of Hawaii cat club.

Aloha committee members, mister chair, mister vice chair, Aloha for allowing me to be here to testify. My name is Aisha Aoki. I am the vice president of the cat fanciers of Hawaii club, further known as C F H throughout my testimony. So we, the breeders and pet owners of the C F H strongly oppose this bill. C F H is a small, very small local nonprofit cat club that is part of a larger international cat fanciers association.

We are breed preservationists passionate about preserving the healthy lines of breed specific cats. Many cats that we work with are quote unquote rare, with very few breeders available worldwide and take the commitment of special people to carry on these healthy lines and genetics. People, breeders who are not in it for the money, as many responsible breeders do not make money from this hobby. We care about carrying on, specific cat breeds and lines no matter what it costs.

With this, breeders extend costs for genetic and health testing.

We expend large veterinary costs for health maintenance, top tier food brands and supplements, as well as the implementation the importation of new breeding stock to ensure genetic diversity among other things. Within CFH, we only have about 10 breeders who only put out a few litters a year. We have cat shows, which make up intact cats only make up about 22 cats with the majority of cats being mainly fixed pets, which account for approximately 45 of those numbers.

So we ask how do having pedigree cats in Hawaii contribute to this overpopulation? For me, specifically, as a breeder, my cats go out fixed, nonnegotiable under my contracts.

So in some migration, we do not support a breed registry. Realistically responsible breeders

Gee, your time is up. Thank you for your testimony.

Thank you.

And a reminder, we still have a hard stop at five, and so I would ask the testifiers if you're to stand on your written testimony unless you have something different that you want to submit. And, I'm also gonna limit the testimony to one minute, since we are running out of time quickly here. Kathy Gogel.

Not on Zoom, chair.

Not there? Is that right?

Yep.

In support, Stephanie Kendrick from Hawaiian Humane Society on Zoom. Oh, she's

Also not on Zoom, chair.

Okay. She's here.

Aloha, chair, vice chair, Senator Rhodes. Stephanie Kendrick with the Hawaiian Humane Society. I will keep this short. You have our testimony. I just wanna point out that this bill does not prevent anyone from bringing an animal into the state and preserving the breeds that they wanna preserve.

All they need to do if they wanna bring in an intact animal is declare that so that we have some information on file about who has intact dogs and cats in our state. Given our problem with pet overpopulation and the free roaming cat population, I do not think that's too much to ask for someone who wants to bring an intact pet into Hawaii. Thank you for your time.

Thank you, Stephanie. Next is Grant Sizemore from American Bird Conservancy. Grant?

Aloha, chair, vice chair, members of the committee. Grant Sizemore, American Bird Conservancy. We stand in support of Senate bill 3012. I really wanna echo what miss Kendrick just said. You know, there is an exemption already in the bill for an animal that's in the state fewer than ninety days and for registered breeders.

But we believe that this bill would go a long way to preventing additional reproduction of unintended re reproduction of dogs and cats. And for us, cats are a big issue because of the potential harms they have for Hawaii's native birds and marine mammals. Cat sterilization is widely supported, and we ask that you please support this bill. Mahalo.

Thank you very much. And next, we have Renee Rocaro. Supposed. Alicia Madsen on Zoom?

Not on Zoom, chair.

Jenna Oda on Zoom.

Also not on Zoom, chair.

Theresa Parsons on Zoom.

Also not on Zoom, chair.

Corrine McCreery on Zoom.

And chair, vice chair, members of the committee. Thank you for allowing me the opportunity to testify. My name is Karen McCreery. I am a resident constituent of Senate District, 13, and I am a strong opposition of s B3012. I do stand on my written testimony.

I also just wanted to include a little bit of personal background. I am currently in the process of importing an Ozawak puppy from an ethical breeder in Washington state, for which I was chosen after a lengthy selective process to serve as a breed ambassador. I'm exactly the type of person that this bill would affect. There are less than a few there are fewer than 500 in The United States and fewer than 3,000 worldwide.

The current verbiage of the bill does not carve out exemptions for someone like me who is not a breeder.

I am simply a dog fancier. I am breed bringing the dog in, for the purposes of showing and sports, as well as a companion animal. I have no intentions of breeding the dog. I'm actually under legally binding contract. Most f most ethical breeders do require, contract obligations that state that the dog must stay intact for a minimum of two years.

Oh gee, thank you. Your time is up. Thank you very much for your testimony.

Thank you.

Next is, Anela Joseph.

Not on Zoom chair.

And Roseanne Michelle?

Also not on Zoom chair.

Okay. Anyone else wishing to testify on this measure? Please come forward.

Good afternoon. Aloha chair, vice chair, members of the committee. My name is Emma Shelley. As a resident of Hawaii, having grown up on Oahu and now working in conservation, I stand in strong support of this bill. I think we all know that free roaming feral and pet cats pose a documented threat to our native wildlife and also our human communities.

Each year, cats spray on countless and the inner native birds, and they transmit toxoplasmosis to monk seals, nay nay, and humans. SB 3012 promotes responsible cat ownership and safeguards our own native ecosystems and communities by reducing the number of unsterilized animals imported into the state. It is consistent with animal welfare, public health, and conservation goals. Mahalo.

Thank you. Anyone else? Please come forward. State your name. You have one minute.

Angela Melody Young, Carrie, wishing to comment. I think if there could be an amendment to help the people involved in this discussion talk to each other, then it can help with facilitating the breeding of cats, and also the effects upon Hawaii. So, you know, there are rag dolls that are very desirable, and people actively want to chase rag doll cats because they have desirable traits, such as being ideally, like a family pet and, requires minimal grooming.

And then there's Bengals, which are illegal in Hawaii, but they're desirable because they're very wild. And so if the the committee wanna

Angela, you're trying to

learn more about breeding, and not just, like, you know, like the kittens that you can pick up at the park, but, like, the special breeds, I think you can start a web group about it.

Thanks. Thank you. Anyone else? Okay. Let's see.

Thank you, Carol.

You're welcome.

Good news. We get to finish. Wonderful. Members, any questions on 3012?

Senator Richards. Patrick.

Yes.

Yes, honoree.