Report Title:
Hawaii Agriculture Research Center; Agricultural Loans
Description:
Appropriates $5,000,000 out of the general fund to the agricultural loan revolving fund to provide loans to the Hawaii Agriculture Research Center to construct agricultural research and community center facilities. (HB2960 HD1)
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2960 |
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TWENTY-THIRD LEGISLATURE, 2006 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to agricultural loans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the commitment of the private sector is critical to the success of any industry and that the Hawaii Agriculture Research Center (HARC) exemplifies such commitment. The legislature also finds that HARC serves as a model of private-public partnerships for agricultural research and has effectively partnered with public institutions in facilitating agricultural technology transfer and maximizing the use of limited community resources. Most of HARC’s funding comes from the private sector, which provides the accountability demanded by its stakeholders and benefits farm production and the local economy.
The legislature further recognizes that HARC has assisted the agricultural sector considerably in its transition from traditional crops to biotechnology. HARC has also provided assistance in the research and development of new products. Finally, HARC has also demonstrated its ability to attract new agricultural business to the state.
Because of its demonstrated dedication to the maintenance, improvement, and expansion of the agricultural sector, the legislature finds that HARC is an integral part of the infrastructure needed to support an economically viable agricultural sector.
HARC has operated an experimental field station on Oahu for over forty years in an area that is considered among the best agricultural lands on Oahu. HARC is working with the U.S. Department of Agriculture's Natural Resources Conservation Service in its Farm and Ranchland Protection Program to dedicate this parcel to agriculture in perpetuity.
In an effort to be more efficient with respect to its laboratory and related field operations, HARC intends to locate its research laboratory facilities at this same location. In addition, it intends to provide sufficient space to provide for an agricultural community center. This center would have an agricultural library, audio and video state conferencing capabilities, meeting and training rooms, an educational ground plan, and office space for agricultural associations.
HARC is seeking a state agricultural loan to cover the costs of constructing the new facilities at the lowest interest rate available over the longest term possible, assuring that a greater portion of the funds received by HARC for agricultural research will be going to that purpose rather than to debt service.
The purpose of this Act is to provide HARC, a non-profit agricultural organization, with a state agricultural loan of up to $5,000,000 to construct suitable facilities for agricultural research and an agricultural community center.
SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $5,000,000 or so much thereof as may be necessary for fiscal year 2006-2007 to be paid into the agricultural loan revolving fund created in section 155-14, Hawaii Revised Statutes.
The sum appropriated shall be expended by the department of budget and finance for the purposes of this Act.
SECTION 3. There is appropriated out of the agricultural loan revolving fund the sum of $5,000,000 or so much thereof as may be necessary for fiscal year 2006-2007 to provide loans to the Hawaii Agriculture Research Center to construct suitable facilities for agricultural research and an agricultural community center.
The sum appropriated shall be expended by the department of agriculture for the purposes of this Act.
SECTION 4. In addition to any loan authorized under chapter 155 or 219, Hawaii Revised Statutes, the department of agriculture may make additional loans totaling not more than $5,000,000 from the agricultural loan revolving fund to carry out the purposes of this Act. The board of agriculture is authorized to waive any provision of chapter 155, Hawaii Revised Statutes, as deemed necessary to effectuate this Act with the exception of the following conditions:
(1) Interest charged shall not be less than the current rate for qualified farmers;
(2) Collateral shall consist of assets deemed reasonable by the board of agriculture; and
(3) Loans provided by this Act shall be authorized only if these loans cannot be made by two lenders.
SECTION 5. This Act shall take effect on July 1, 2006.