SB2925 SD1

SECTION 1. The legislature finds that organic farming practices are beneficial to human health and the preservation of environmental quality because these practices emphasize sustainability, enhance soil health, and promote the practice of growing agricultural products without the use of toxic substances, such as pesticides and fertilizers. While organic farming is an important building block for maintaining and preserving the State's scenic and environmental resources, it is also an essential element in creating economic viability and preserving the quality of life in rural and agricultural communities.

The Organic Foods Production Act (7 U.S.C. chapter 94) establishes national standards governing the marketing of certain agricultural products as organically produced products; assures consumers that organically produced products meet a consistent standard; and facilitates interstate commerce in fresh and processed food that is organically produced. The federal regulations under the National Organic Program (7 C.F.R. part 205) provide that each state may implement an organic program for agricultural products that have been produced and handled within the state, using organic methods that meet the requirements of the Organic Foods Production Act and the National Organic Program. Due to the sensitive nature of Hawaii's environment and the unique challenges that Hawaii organic farmers face, it is necessary to develop a state organic program pursuant to the National Organic Program, develop and implement a state organic plan, and conduct oversight of all organic agricultural activities statewide.

According to a national study, approximately two per cent of the United States food supply is grown using organic methods and the nationwide retail sales of organic food and beverages in 2005 totaled approximately $12,800,000,000. Currently, there are close to two hundred farms in Hawaii, which produce organic products, such as coffee, macadamia nuts, bananas, pineapples, ginger, mangos, citrus fruits, avocados, tomatoes, and salad greens. The Hawaii Organic Farmers Association, an accredited third party certification agency for the United States Department of Agriculture's National Organic Program, estimates that organic farming in Hawaii is a $5,000,000 to $10,000,000 per year industry.

There is currently a high and increasing demand for organic produce that exceeds Hawaii's local supply. In order to meet this demand, local produce markets and large mainland chain stores must import organic produce from the mainland and other countries. The importation of organic produce can result in a higher number of invasive species inadvertently brought into the State, and can impact the State's agricultural sector, economy, and sustainable food supply.

The purpose of this Act is to:

(1) Establish a state organic program under the direction of the department of agriculture;

(2) Require the department of agriculture to develop and implement a plan for the state organic program; and

(3) Appropriate funds to the department of agriculture to establish and implement this program.

SECTION 2. Chapter 141, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§141‑ State organic program. (a) There is established within the department of agriculture a state organic program, pursuant to the United States Department of Agriculture's National Organic Program that shall:

(1) Register all United States Department of Agriculture third party certifying agents conducting certification services in the State;

(2) Collect production and certification data and requirements from third party certifying agents for analytical purposes;

(3) Develop and provide local enforcement procedures for the National Organic Program regulations and the state organic program rules;

(4) Maintain cognizance of actions taken by industry and by federal, state, county, and private agencies in activities relating to organic agriculture, and promote and support worthwhile organic agriculture activities;

(5) Serve as an information clearinghouse for organic agriculture activities;

(6) Actively seek federal funding for organic agriculture activities;

(7) Undertake activities required to develop and expand the organic agriculture industry;

(8) Conduct other activities as necessary to promote and protect Hawaii's organic industry; and

(9) Perform other functions and activities as may be assigned by law.

(b) The department may employ additional staff, prescribe their duties and qualifications, and fix their salaries to assist in establishing and implementing the organic agriculture program without regard to chapter 76.

(d) For purposes of this section, "organic" means a labeling term that refers to an agricultural product produced or handled in accordance with 7 U.S.C. chapter 94 and 7 C.F.R. part 205."

SECTION 3. The department of agriculture shall establish a detailed plan to further develop and coordinate all the purposes and responsibilities of the state organic program by November 30, 2008. The department of agriculture shall implement the detailed plan for the state organic program no later than June 30, 2009.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $150,000 or so much thereof as may be necessary for fiscal year 2008-2009 for the department of agriculture to establish and implement a state organic program.

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

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval; provided that section 4 shall take effect on July 1, 2008.

THE SENATE	S.B. NO.	2925
TWENTY-FOURTH LEGISLATURE, 2008		S.D. 1
STATE OF HAWAII