Includes agricultural industrial enterprises and agricultural infrastructure improvements under the scope of special purpose revenue bonds for industrial enterprises.

A BILL FOR AN ACT

SECTION 1. The legislature finds that the downsizing of the sugar industry and the transitioning of the agricultural industry from plantation agriculture to other agricultural enterprises present an opportunity for great expansion of Hawaii's agricultural production. What is vital to the expansion of agriculture, however, is the maintaining of agriculture's supporting infrastructure. Plantation agriculture created a valuable inventory of infrastructure, including irrigation systems, roads, and drainage systems. The successful transitioning of the agriculture industry requires that this valuable infrastructure be preserved, enhanced, and reconfigured to support new agricultural ventures. To build these systems today will cost more than agricultural enterprises are willing to invest in start-up costs.

Lacking the huge investments made by the sugar companies to construct and maintain these systems, the legislature finds that the transitioning agriculture industry needs an instrument to encourage private investment in agricultural infrastructure.

The purpose of this Act is to allow the use of special purpose revenue bonds for the construction and improvement of agricultural infrastructure by the agriculture industry.

SECTION 2. Section 39A-151, Hawaii Revised Statutes, is amended as follows:

1. By adding three new definitions to be appropriately inserted and to read:

""Agricultural infrastructure improvement" means the planning, design, construction, reconstruction, improvement, altering, or repairing of agricultural supporting infrastructure used or formerly used by a plantation system or other large agricultural operation, including irrigation systems, roads, and drainage systems.

"Drainage system" means an agricultural system of channels, ditches, pipes, pumps, and accessory facilities established for the purpose of drawing off water from a land area larger than twenty acres.

"Irrigation system" means an agricultural system of intakes, diversions, wells, ditches, siphons, pipes, reservoirs, and accessory facilities established for the purpose of providing water for agricultural production."

2. By amending the definitions of "project", "project agreement", and "project party" to read:

""Project" means any combination of land, buildings, and other improvements thereon, including without limitation parking facilities, for use of, or for, or to assist an industrial enterprise, including, without limiting the generality of the foregoing, machinery, equipment, furnishings, and apparatus [which] that shall be deemed necessary, suitable, or useful to such enterprise[.]; and, in the case of an agricultural industrial enterprise, means any combination of land, buildings, and other improvements that constitute an agricultural infrastructure improvement for use by one or more agricultural industrial enterprises.

"Project agreement" means any agreement entered into under this part by the department with a project party to finance, construct, operate, or maintain a project or any supporting infrastructure used or formerly used by a plantation system or other large agricultural operation from the proceeds of special purpose revenue bonds, or to lend the proceeds of special purpose revenue bonds to assist an industrial enterprise, including without limitation any loan agreement.

"Project party" means [a] either:

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.