HB315

HOUSE OF REPRESENTATIVES	H.B. NO.	315
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

A BILL FOR AN ACT

SECTION 1. The legislature finds that for agriculture to succeed in Hawaii, farmers must have access to affordable land and water resources. It is vital that farmers are provided the necessary infrastructure to fully maximize their production capabilities as well as compete in the global market.

The legislature also finds that Kula, in upcountry Maui, is considered to be one of the most productive agricultural communities in the State. However, farmers and Kula residents have competing uses for the existing Kula water system. The competition between potable water and agricultural water places a heavy burden on the Kula farmers because water is being treated to drinking water standards, thus making the water expensive for agricultural use. In some cases, Kula farmers are paying three to four times more for agricultural water than farmers in other parts of the State.

The legislature finds that the federal government has appropriated funds for the construction of a separate agricultural water distribution system for Kula. This new system will help provide farmers with affordable water resources. It is critical that the State and county agencies continue to support this vital agricultural area and provide the fifty per cent matching funds to continue this project.

The purpose of this Act is to provide the necessary fifty per cent matching funds for the construction of a new agricultural water distribution system for Kula, in upcountry Maui.

SECTION 2. The director of finance is authorized to issue general obligation bonds in the sum of $1,500,000 or so much thereof as may be necessary for fiscal year 2007-2008 and $1,500,000 or so much thereof as may be necessary for fiscal year 2008-2009, and the same sums or so much thereof as may be necessary are appropriated for fiscal year 2007-2008 and fiscal year 2008-2009 to provide state matching funds for land acquisition, design, and construction costs incurred in the construction of a new agricultural water distribution system for Kula in upcountry Maui.

This project is deemed necessary to qualify for federal aid financing and reimbursement.

SECTION 3. The appropriations made for the capital improvement project authorized in section 2 of this Act shall not lapse at the end of the fiscal year for which the appropriations are made; provided that all moneys that are unencumbered as of June 30, 2010, shall lapse as of that date.

SECTION 4. The sums appropriated shall be expended by the department of agriculture for the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2007.

INTRODUCED BY:	_____________________________