RELATING TO STRATEGIC FOOD RESERVES.

SB3162

THE SENATE

S.B. NO.

3162

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to strategic food reserves
.

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

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

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

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Accordingly, the purpose of this Act is to:

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

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

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

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

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(5)
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Establish
the agricultural market development grant program;

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

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

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

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

"
Part
. Hawaii strategic food reserves PROGRAM

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

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"Department"
means the department of agriculture and biosecurity.

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

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

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

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

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

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(1)
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The office of planning and sustainable
development;

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(2)
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The Hawaii emergency management agency;

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(3)
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County emergency agencies; and

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(4)
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Other relevant state and county agencies.

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(c)
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The department shall:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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(c)
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The advisory committee shall:

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

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

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

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

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(5)
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Monitor
program effectiveness and recommend improvements;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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(1)
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Appropriations
made by the legislature;

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

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

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(4)
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Federal
grants for food security programs;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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(7)
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Recommendations
for improvements to the program.

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

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

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

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

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(3)
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Identify
potential storage locations on each island;

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

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

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

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

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(2)
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Establish
contracts with suppliers;

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(3)
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Begin
the acquisition of initial food supplies;

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

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

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

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

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

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

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

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

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(1)
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Achieve
intermediate local purchase requirement targets;

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

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

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

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

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

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SECTION 6.
�

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

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

INTRODUCED BY:

_____________________________

Report Title:

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

Description:

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

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not legislation or evidence of legislative intent.