Report Title:

Lanai farmers; Appropriation

Description:

Appropriates funds for the creation of a Lanai agriculture industry by providing funds for the purchase of water by the Lanai farmers.  (HB715 HD2)

HOUSE OF REPRESENTATIVES	H.B. NO.	715
TWENTY-FOURTH LEGISLATURE, 2007		H.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

making an appropriation for the purchase of water for agricultural use on lanai.

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

     SECTION 1.  A one hundred-acre space on the island of Lanai was designated by the department of agriculture as an agricultural park to increase the diversity of the island economy.  While the availability of ample water supply at a reasonable cost is essential to the creation of an agriculture industry, water on Lanai is provided by a private company that has increased its water rates to such a degree that agriculture is not economically feasible for any farmer.  The creation of an agriculture industry necessitates assistance in payment for the water.  Lanai Water Company, a privately-owned company that provides water on Lanai, has offered to match any water subsidy provided by the State to pay for the purchase of water by farmers on Lanai.  The legislature therefore finds it to be in the best interests of the state to help create an agriculture industry on Lanai by providing assistance to Lanai farmers in their purchase of water.

     The purpose of this Act is to appropriate funds to assist Lanai farmers in purchasing water for agricultural use.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $       or so much thereof as may be necessary for fiscal year 2007-2008 to assist Lanai farmers in purchasing water for agricultural use; provided that no funds shall be expended unless matched dollar-for-dollar by Lanai water company.

     The sum appropriated shall be expended by the department of agriculture for the purposes of this Act.

     SECTION 3.  This Act shall take effect on July 1, 2020.