SB504 establishes a Local Agriculture Transportation Cost Reimbursement Program within the Hawaii Department of Agriculture. The program would reimburse eligible agricultural producers for a portion of their transportation costs when moving livestock, livestock products, agricultural commodities, and certain supplies within the state by covered motor vehicle, air cargo, parcel, or water cargo carrier. Eligible participants include livestock owners, producers of agricultural commodities, cooperative aggregators or food hubs, and certain start-up or small-scale farmers demonstrating commercial intent.
The bill also sets reimbursement limits and reporting requirements. No single producer could receive more than $25,000 or 50 percent of eligible transportation costs per fiscal year, whichever is less, and no single cooperative aggregator or food hub could receive more than $50,000 or 50 percent of eligible transportation costs per fiscal year, whichever is less. The department would be required to submit annual reports to the legislature and could adopt rules to administer the program. The bill further appropriates general funds for both program operations and one full-time equivalent position to run the program, though the specific dollar amounts are left blank in the text provided.
Impact
SB504 would amend chapter 141, Hawaii Revised Statutes, by adding a new section creating a transportation reimbursement program for local agriculture and by authorizing the Department of Agriculture to implement it through rulemaking. It would create a new ongoing administrative responsibility for the department, require annual legislative reporting, and add a dedicated staff position. The bill also includes general fund appropriations for fiscal years 2025-2026 and 2026-2027 to support the program and its administration, but the amounts are unspecified in the text provided.
Sentiment
The available legislative history suggests generally favorable support for the bill. It passed the Senate Agriculture and Environment committee on February 3, 2025, with 4 yeas and 0 nays, and the bill’s findings frame the measure as a response to high shipping costs that hinder local agricultural expansion and food security. No committee transcript is available here, but the unanimous committee vote indicates broad agreement on the need to help farmers and ranchers offset transportation expenses.
Contention
The main policy issue appears to be whether and how much the state should subsidize transportation costs for agricultural producers, including the scope of eligible recipients and the size of reimbursements. The bill specifically includes livestock owners, commodity producers, cooperative aggregators, food hubs, and some start-up or small-scale farmers, which may raise questions about eligibility boundaries and program administration. Another practical point of uncertainty is that the bill leaves key fiscal figures blank, including the annual program cap and appropriation amounts, suggesting unresolved budget details rather than substantive opposition in the available record.