HB780

SECTION 1. Article XI, section 3, of the state constitution mandates the State to "conserve and protect agricultural lands, promote diversified agriculture, increase agricultural self-sufficiency and assure the availability of agriculturally suitable lands." To promote, in part, that mandate, the department of agriculture maintains the state irrigation system that consists of five separate irrigation systems, two on Oahu, two on the island of Hawaii, and one on Molokai. To ensure affordable water rates for its users, the state irrigation system annually supplements its income from fees and assessments with general fund appropriations.

However, only a fraction of all agricultural water users have access to the state irrigation system. Those water users without access to the state irrigation system in many cases rely on the counties to provide irrigation water at agricultural rates. In all cases, these county rates are substantially higher that the state irrigation system rates. This disparity results in the inequitable treatment of agricultural water users without access to the subsidized state irrigation system.

The purpose of this Act is to require the department of agriculture to reimburse those agricultural water users who cannot access a state irrigation system for the difference between the actual water rates they pay to the counties at agricultural rates and the water rates that the department charges its state irrigation system water users.

SECTION 2. Chapter 167, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§167- County water users; reimbursement. (a) Any county water user shall be entitled to a reimbursement from the department of agriculture for the difference between the actual costs of irrigation water that the county water user paid to the county and the cost of the equivalent amount of irrigation water had that amount of irrigation water been provided by the state irrigation system.

(b) By January 31 of each year, on forms to be prescribed and provided by the department of agriculture, a county water user may submit a request for a reimbursement for the difference between the actual cost that the county water user incurred and paid to a county for irrigation water during the previous calendar year, and the cost for the equivalent amount of irrigation water that the county water user would have paid had the county water user been able to obtain the irrigation water from the state irrigation system. Within sixty days of the submittal of the request for reimbursement, the department of agriculture shall pay the amount due to the county water user. The department of agriculture may require the county water user to furnish reasonable information to ascertain the validity of the claim for reimbursement. Failure to comply with this subsection shall constitute a waiver of the right to reimbursement.

(c) For purposes of this section, "county water user" means a consumer of irrigation water that qualifies to receive irrigation water from a county at agricultural rates."

SECTION 3. Section 167-22, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The irrigation system revolving fund shall be administered by the department of agriculture. Moneys in the revolving fund shall be expended for:

(1) Administrative costs, engineering surveys, economic studies, plans, and maps; [~~and~~]

(2) Reimbursements paid to county water users pursuant to section 167- ; and

[~~(2)~~] (3) Other water projects or purposes of the board of agriculture.

In the event any moneys are expended from the revolving fund for engineering surveys, economic studies, plans, and other expenses directly attributable to any water project, or for the establishment of any water project, the amount of the expenditures shall be reimbursed to the revolving fund from any funds received by the board for and on account of the project."

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect July 1, 2007.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	780
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII