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GM 1168

Informing the Legislature that on June 3, 2026, the Governor signed the following bill into law: HB1707 HD1 SD2 CD1 (ACT 068).

2026 Regular Session

Creates a pilot to reimburse Hawaii agricultural producers for part of transportation costs to markets, with caps and annual reporting.

Received.
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Bill Summary · GM 1168

Summary of HB1707, HD1, SD2, CD1 (Act 068) – Hawaii, 2026

Purpose and intent

  • Establish a local agriculture transportation cost reimbursement pilot program to help Hawaii’s agricultural producers offset high transportation costs.
  • Aim to improve local agricultural production, food security, and economic diversification by reducing barriers caused by shipping and logistics expenses.

Key provisions and changes

  • New program creation: Adds a pilot program within the Department of Agriculture and Biosecurity to reimburse eligible agricultural producers for a portion of their transportation costs.
  • Eligibility criteria ( Section 141- ):
    • Eligible producers include:
    • Owners of livestock or producers of agricultural commodities in Hawaii
    • Cooperative aggregators or food hubs
    • Start-up or small-scale farmers with proof of commercial intent and meeting financial thresholds
    • Must incur costs to transport:
    • Livestock, livestock products, or agricultural commodities to market within Hawaii
    • Necessary supplies for agricultural use
    • Financial threshold:
    • Producers must have annual gross receipts of at least $2,500 (or evidence of commercial intent for start-ups/small-scale farmers)
  • Reimbursement limits (Section 141):
    • Annual cap on total reimbursements: up to $2,000,000 per fiscal year
    • Individual limits:
    • Producers: up to $25,000 per year or 50% of eligible transportation costs, whichever is less
    • Co-ops/food hubs: up to $50,000 per year or 50% of eligible transportation costs, whichever is less
  • Administration and reporting:
    • The Department of Agriculture and Biosecurity administers the program
    • Annual reporting to the Legislature no later than 20 days before the convening of each regular session, including:
    • Total number of producers reimbursed
    • Total funds disbursed
    • Recommendations for improvements or potential legislative changes
    • The department may establish rules under Chapter 91 to implement the program
  • Definitions provided:
    • “Agricultural commodity” includes nursery production and honey (per Section 141-7)
    • “Covered motor vehicle” = motor vehicle owned by an eligible producer and used within Hawaii for transporting eligible goods and supplies
    • “Necessary supplies” = chemicals, feed, fertilizer, fuel, seeds, plants, equipment parts, and other inputs as determined by the department
  • Funding and staffing:
    • General fund appropriation: $1,000,000 for FY 2026-2027 to fund and administer the program
    • Administrative position: $55,200 for FY 2026-2027 to fund one full-time equivalent (1.0 FTE) position within the department to administer the program

Affected parties

  • Primary beneficiaries: Local agricultural producers (livestock and other agricultural commodities), including start-ups and small-scale farmers, as well as cooperative aggregators and food hubs that transport goods to market or obtain necessary supplies.
  • State agencies:
    • Hawaii Department of Agriculture and Biosecurity (administrative authority, funding, rulemaking)
  • Broader impact: Potential improvements in local food production, self-sufficiency, and diversification of Hawaii’s economy by mitigating transportation cost barriers.

Procedural and timeline aspects

  • Effective date: July 1, 2026
  • Sunset/expiration: Repeal date set for June 30, 2029 (pilot program terminates unless further legislation extends it)
  • Reporting cadence: Annual reports due 20 days before the Legislature’s regular session each year
  • Appropriation timing: Funding for FY 2026-2027 (and staffing) allocated at enactment, with ongoing administration during the pilot period

Practical considerations and potential impact

  • The program directly targets the high cost of transporting agriculture to market, a known constraint for local producers.
  • By placing annual caps, it ensures broad access while limiting total state expenditure.
  • The pilot’s success will depend on effective administration, timely reimbursements, and robust reporting to assess impact and inform any future expansion or continuation beyond 2029.
  • Possible future legislative considerations may include adjusting eligibility thresholds, reimbursement formulas, or expanding to include additional agricultural sectors.

Compiled from official sources — confirm details with the bill’s official record.

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