Appropriates funds to the College of Tropical Agriculture and Human Resources at the University of Hawaii at Manoa for research and development of high-value food, plant, and fiber products. (CD1)

A BILL FOR AN ACT

SECTION 1. The legislature finds that Hawaii must diversify its economic base beyond a reliance on tourism. A revived state agricultural industry holds the promise of not only diversifying Hawaii's economy, but also sustaining and stabilizing Hawaii's food supply while preserving the green space and lifestyle that Hawaii's citizens and visitors value.

Hawaii's agriculture and value-added products contribute $2,400,000,000 to the State's economy and employ more than thirty-eight thousand people. During the past twenty years, diversified agriculture in Hawaii more than doubled. The prime agricultural lands released from sugar and pineapple production present a rare window of opportunity to further agricultural development. Currently, about one hundred thousand acres of former sugar and pineapple land are lying fallow awaiting economically viable agribusinesses. If all of this land could be put to productive use in successful agricultural ventures, an additional $1,700,000,000 to $4,400,000,000 could be added to the State's economy.

The legislature finds that in order for Hawaii's agriculture to take advantage of this opportunity, it must produce high quality, market-driven products that offset Hawaii's high costs of land, labor, water, and transportation. This requires that agriculture have access to the highest quality, state-of-the-art research and outreach programs.

The University of Hawaii college of tropical agriculture and human resources is engaged in several areas of research and outreach that have already contributed to the resurgence of agriculture in Hawaii. Among the college's contributions to the State's agricultural industry are:

The legislature further finds that work in all of these areas must be expanded to develop high-value products such as:

In addition to the research and development needs of agriculture, the legislature further finds that it must encourage the development of economically viable enterprises on the prime agricultural lands currently available. The National Business Incubator Association reports that eighty-seven per cent of incubator graduates remain in business, while only twenty-five per cent of small businesses remain after five years. There is a critical need for an agribusiness incubator initiative to provide start-up counseling, business plan development, management guidance, marketing assistance, legal and financial referrals, mentors, training workshops, and other assistance critical to the establishment of successful agribusiness enterprises.

The purpose of this Act is to appropriate funds to the University of Hawaii to enable the University of Hawaii college of tropical agriculture and human resources to conduct crucial research and development of high-value agricultural products, breeding programs, and related activities.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $400,000, or so much thereof as may be necessary for fiscal year 2003-2004, for the continued development of high-value agricultural products and a breeding program to provide new agricultural products, the assessment of local and export markets, development of industry assessments, disease prevention programs, and other high priority needs; provided that these appropriations shall be added to the base budget request of the University of Hawaii.

The sums appropriated shall be expended by the University of Hawaii for the purposes of this Act.

SECTION 3. This Act shall take effect on July 1, 2003.