REPORT TITLE:
Irrigation Revolving Fund


DESCRIPTION:
Appropriates funds as an interim subsidy to the irrigation system
revolving fund to be used by the department of agriculture,
agricultural resource management division, until a water toll
increase is put into effect.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1380
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                S.D. 1
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

MAKING AN INTERIM APPROPRIATION FOR THE DEPARTMENT OF
   AGRICULTURE, AGRICULTURAL RESOURCE MANAGEMENT DIVISION.



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

 1      SECTION 1.  The legislature finds that the irrigation system
 
 2 revolving fund is in the process of increasing its revenues
 
 3 through a water toll rate proposal.  Public hearings on the
 
 4 proposals have met heavy opposition and major concerns from the
 
 5 farming communities and the agriculture industry.  The resistance
 
 6 to an increase in water tolls at this time is based on the
 
 7 following reasons:
 
 8      (1)  Market demand for produce is not strong due to the
 
 9           State's depressed economy;
 
10      (2)  Market prices are being adversely affected by the
 
11           increased costs of operation and transportation; and
 
12      (3)  The timing of the proposal will cause further stress
 
13           upon farming costs and may cause some farm failures.
 
14      The board of agriculture, faced with strong objections, has
 
15 directed that a compromise on the timing and a delay in the
 
16 effective date for the increase be negotiated with the affected
 
17 parties.  While this is being negotiated, the revenues now being
 
18 collected are not sufficient to meet anticipated operating
 
19 expenses for the existing systems.
 

 
Page 2                                                     1380
                                     H.B. NO.           H.D. 1
                                                        S.D. 1
                                                        

 
 1      The purpose of this Act is to provide an interim subsidy to
 
 2 the irrigation system revolving fund to allow the irrigation
 
 3 system to meet its operating costs and to allow the affected
 
 4 parties to recover from the depressed economy.
 
 5      SECTION 2.  There is appropriated out of the general
 
 6 revenues of the State of Hawaii the sum of $1, or so much thereof
 
 7 as may be necessary for fiscal year 1999-2000, and the sum of $2,
 
 8 or so much thereof as may be necessary for fiscal year 2000-2001,
 
 9 to be used by the department of agriculture, agricultural
 
10 resource management division, as an interim subsidy to the
 
11 irrigation system revolving fund until a water toll increase is
 
12 put into effect.
 
13      SECTION 3.  The sums appropriated shall be expended by the
 
14 department of agriculture for the purpose of this Act.
 
15      SECTION 4.  This Act shall take effect on July 1, 1999.