HOUSE OF REPRESENTATIVES	H.B. NO.	2294
TWENTY-FIFTH LEGISLATURE, 2010		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO AGRICULTURE.

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

     SECTION 1.  The purpose of this Act is to address agriculture.  More specifically, this Act includes the following major amendments:

     (1)  Exempts aggregate bulk freight, cement bulk freight, coal bulk freight, and liquid bulk freight from the pest inspection, quarantine, and eradication service fee;

     (2)  Clarifies and increases the purposes for which funds may be expended from the pest inspection, quarantine, and eradication fund;

     (3)  Requires the deposit of fees and fines relating to agricultural inspections into the pest inspection, quarantine, and eradication fund; and

     (4)  Repeals the permit revolving fund and microorganism revolving fund and transfers moneys in those funds into the pest inspection, quarantine, and eradication fund.

SECTION 2.  Chapter 150A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and read as follows:

“§150A-  Failure to pay or remit the inspection quarantine, and eradication service fee; fines. (a)  The following fines shall be imposed for failure to pay, bill, or remit the inspection, quarantine, and eradication service fee as provided for in section 150A-5.3:

(1) A person responsible for paying the freight charges to the transportation company who does not pay the fee shall be assessed a fine of $____ for every one thousand pounds of freight or part thereof; and

(2) A transportation company that does not:

(A) Bill the fee to the person responsible for paying the freight charges to the transportation company within fifteen days of the delivery of the freight; or

(B) Remit the fee to the department within forty-five days of collecting the fee from the person responsible for paying the freight charges to the transportation company,

shall pay a fine of $____ for every one thousand pounds of freight or part thereof.

(b)  All fines shall be paid to the department and deposited into the pest inspection, quarantine, and eradication fund under section 150A-4.5.”

SECTION 3.  Section 150A-2, Hawaii Revised Statutes, is amended by adding four new definitions to be appropriately inserted and to read:

""Aggregate bulk freight” means man-made, unpackaged, pre-processed, inspected and certified, homogenous particulate material used in construction, without mark or count and usually free-flowing, bought and sold by weight or volume, such as clean sand, gravel, crushed stone, slag, recycled concrete, and geosynthetic aggregates.

"Cement bulk freight" means unpackaged, homogenous cement that has no mark or count and is usually free-flowing and bought and sold by weight or volume.

"Coal bulk freight" means unpackaged, homogenous coal, without mark or count and usually free-flowing, bought and sold by weight or volume, used as a fuel.

"Liquid bulk freight" means unpackaged, homogenous liquid goods, without mark or count, that are usually free-flowing bought and sold by weight or volume, such as oil, or other complex mixture of petroleum hydrocarbons, bituminous liquids such as asphalt, gasoline, and fuel oils."

     SECTION 4.  Section 150A-4.5, Hawaii Revised Statutes, is amended to read as follows:

     "(a)  There is established in the state treasury the pest inspection, quarantine, and eradication fund, into which shall be deposited:

     (1)  Legislative appropriations for inspection, quarantine, biosecurity, and eradication services;

     (2)  Service fees, charges, and penalties collected under section 150A-5.3[;] and section 150A-23;

(3) Fees imposed for services pursuant to this chapter or rule adopted under this chapter;

(4) Fines for violations of this chapter;

    [(3)] (5)  Federal funds received for biosecurity, pest inspection, control, management, quarantine, and eradication programs;

    [(4)] (6)  Grants and gifts;

    [(5)] (7)  All interest earned or accrued on moneys deposited in the fund; and

    [(6)] (8)  Any other moneys made available to the fund.

     (b)  The moneys in the pest inspection, quarantine, and eradication fund shall be expended by the department for the operation of pest inspection, quarantine, eradication, biosecurity, and monitoring programs, related facilities, [and] training and education of inspectors and agricultural industry, permit and certificate holders and the general public, the execution of emergency remedial measures when pests are detected in the course of inspection and quarantine activities by the department[.], and for any other purposes deemed necessary to carry out the purposes of this part.  In addition, the moneys shall be expended to facilitate the processing and issuance of permits and microorganism certificates, the operation, activities and monitoring of permitted and certified plants, animals and microorganisms."

     SECTION 5.  Section 150A-5.3, Hawaii Revised Statutes, is amended to read as follows:

     "§150A-5.3  Inspection, quarantine, and eradication service fee and charge. (a)  There is imposed a fee for the inspection, quarantine, and eradication of invasive species contained in any freight, including but not limited to marine commercial container shipment, air freight, or any other means of transporting freight, foreign or domestic, not including aggregate bulk freight, cement bulk freight, coal bulk freight, or liquid bulk freight, that is brought into the [State.] state. The transportation company shall bill the fee to the person responsible for paying the freight charges to the transportation company within fifteen days of the delivery of the freight.  The fee shall be paid by the person responsible for paying the freight charges to the transportation company[, who] within forty-five days of receipt of the bill.  The transportation company shall collect the fee from the person responsible and forward the payment to the department at the port of disembarkation[;] within forty-five days of receipt of the fee; provided that the transportation company shall not be liable for any fee that is not paid by the person responsible for paying the freight charges to the transportation company.

     The department shall deposit the fee into the pest inspection, quarantine, and eradication fund under section 150A-4.5. 

(b)  The fee shall be assessed and collected on the net weight of the imported freight computed on the basis of 50 cents for every one thousand pounds of freight brought into the [State,] state, or part thereof."

     SECTION 6.  Section 150A-21, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§150A-21[]]  Certification for shipment.  The department may certify as to the pest condition or post treatment of shipments when officially required.  Fees may be charged for certificates in certain instances[.]; provided that the fees shall be deposited into the pest inspection, quarantine, and eradication fund."

     SECTION 7.  Section 150A-23, Hawaii Revised Statutes is amended to read as follows:

     "[[]§150A-23[]]  Nursery stock certificate.  The department may issue and authorize the use of nursery stock certificates by any shipper complying with its regulation for nursery inspection.  Shipments accompanied by these certificates may move to other localities within the county or to other counties without inspection at destination.  Nursery stock certificates may be issued for interstate shipments.  Fees may be charged for nursery certification[.] and shall be deposited into the pest inspection, quarantine, and eradication fund.  Nursery stock certificates shall not be altered or misused.

     The department may revoke or suspend the right to use any nursery stock certificate which is issued to any person who fails to comply with requirements for their use.”

SECTION 8.  Section 150A-31, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§150A-31[]]  Certificate for shipment.  The department may certify as to the pest condition of honey bee shipments when health certificates are officially required.  Fees to cover the department's certification costs may be charged for health certificates as provided by rule[.]; provided that the fees shall be deposited into the pest inspection, quarantine, and eradication fund.  Health certificates shall not be altered or misused."

     SECTION 9.  Section 150A-42, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Fees may be assessed for the processing and issuance of a certificate and for inspections related to the certificate, as established by rule.  Fees may vary according to the type of certification issued and the costs incurred for inspections[.]; provided that the fees shall be deposited into the pest inspection, quarantine, and eradication fund."

     SECTION 10.  Section 150A-6.7, Hawaii Revised Statutes, is repealed.

     ["§150A-6.7  Permit revolving fund.  (a)  There is established in the state treasury a revolving fund to be known as the permit revolving fund to be administered by the department.  The permit revolving fund shall consist of:

(1) Legislative appropriations;

(2) User fees as authorized by rule;

(3) All interest earned on or accrued to moneys deposited in the permit revolving fund;

(4) Grants and gifts; and

(5) Any other moneys made available to the permit revolving fund from other sources.

(b)  The department shall expend moneys in the permit revolving fund to:

(1) Facilitate the processing and issuance of permits;

(2) Amend lists of creatures prohibited or allowed for import;

(3) Comply with monitoring activities;

(4) Train personnel, and provide educational workshops, materials, and equipment; and

(5) For any other purpose deemed necessary to carry out the purposes of this part."]

     SECTION 11.  Section 150A-48, Hawaii Revised Statutes, is repealed.

     ["[§150A-48]  Microorganism import certification revolving fund.  (a)  There is established in the state treasury the microorganism import certification revolving fund which shall be administered by the department for the purposes of this section.  The microorganism import certification revolving fund shall consist of:

(1) Legislative appropriations to the microorganism import certification revolving fund;

(2) Certification and inspection fees, as authorized by rule;

(3) All fines collected pursuant to this part;

(4) Reimbursements for any costs paid by the department to remediate any impending danger or actual emergencies involving microorganisms imported pursuant to certificate;

(5) All interest earned on or accrued to moneys deposited in the microorganism import certification revolving fund;

(6) Grants and gifts to the microorganism import certification revolving fund; and

(7) Any other moneys made available to the microorganism import certification revolving fund from other sources.

(b)  The balance in the microorganism import certification revolving fund shall not exceed $500,000.  All amounts in excess of $500,000 shall be deposited to the credit of the state general fund.

(c)  The department shall expend moneys in the microorganism import certification revolving fund for the development, administration, and operation of the microorganism import certification program, including but not limited to personnel, training, materials and equipment, compliance monitoring activities, educational workshops for certified importers and applicants for certification, evaluation and remediation of impending threat or actual emergencies related to microorganisms imported pursuant to certificate, and for any other purpose deemed necessary to carry out the purposes of this part.

(d)  The department may set fees, by rule, for educational workshops for certified importers or applicants for certification."]

     SECTION 12.  (a)  The repeal of section 150A-6.7 and section 150A-48, Hawaii Revised Statutes, shall not rescind any fees authorized or imposed under those sections that would have been deposited into the permit revolving fund or the microorganism import certification revolving fund.  From July 1, 2010, the fees under those sections shall be deposited into the pest inspection, quarantine, and eradication fund.

     (b)  On the effective date of this Act:

     (1)  All moneys in the permit revolving fund and microorganism import certification revolving fund on June 30, 2010, shall be transferred to the pest inspection, quarantine, and eradication fund;

     (2)  All unpaid obligations of the permit revolving fund and microorganism import certification revolving fund on June 30, 2010, shall become payable from the pest inspection, quarantine, and eradication fund; and

     (3)  The permit revolving fund and microorganism import certification revolving fund shall cease to exist.

     SECTION 13.  (a)  Between July 1, 2010 and September 30, 2010, the department of agriculture shall adopt new or amend existing rules to impose or increase fees authorized to be charged under chapter 150A, Hawaii Revised Statutes, without regard to the public notice and public hearing requirements of section 91-3, Hawaii Revised Statutes, the small business impact review requirements of chapter 201M, Hawaii Revised Statutes, or the limit on fee increases under section 92-28, Hawaii Revised Statutes.  The department shall set the fees at amounts intended to generate, together with the pest inspection, quarantine, and eradication fee, sufficient revenues to pay the operation and maintenance costs of implementing the agriculture inspection and biosecurity programs of chapter 150A, Hawaii Revised Statutes, and central services and departmental administrative expense assessments of section 36-27 and section 36-30, Hawaii Revised Statutes.

     (b)  If, by September 30, 2010, the department of agriculture has not complied with subsection (a), then the fee charged for each inspection or certification conducted under authority of chapter 150A shall be as follows commencing October 1, 2010: 

(1) A fee for inspection, safeguarding, witnessing departure, witnessing treatment, or certification requiring the services of personnel beyond regular work hours, including pre-shift, post-shift, holidays, or days off, and an additional fee shall be assessed, which shall include applicable charges for overtime wages, fixed charges for personnel services, and meals;

(2) A fee for inspection during regular work hours conducted away from the port or office shall be $50 dollars per hour plus mileage reimbursement;

(3) An annual fee for nursery certification shall be $100 dollars;

(4) A fee for follow-up inspections required to correct deficiencies found in a certification inspection or inspections to remedy out-of-state rejections shall be $50 dollars per hour plus mileage reimbursement;

(5) A fee for treatment or destruction of infested commodities performed by the branch shall be $50 dollars per parcel;

(6) A fee for the use of a quarantine house operated by the branch shall be $50 dollars per room per month; and

(7) A storage fee of $5 dollars per day shall be charged for commodities stored at any branch office, forty-eight hours after written notification.

     The fee shall be deposited into the pest inspection, quarantine and eradication fund.

     (c)  Any subsequent amendments to the rules adopted or amended pursuant to subsection (a) or the fees established under subsection (b) shall be subject to all applicable provisions of chapter 91, chapter 201M, and section 92-28, Hawaii Revised Statutes.

     SECTION 14.  There is appropriated out of the pest inspection, quarantine, and eradication fund the sum of $10,000,000, or so much thereof as may be necessary for fiscal year 2010-2011, and shall be expended by the department of agriculture for the purposes of the fund.

     SECTION 15.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 16.  This Act shall take effect on July 1, 2010.

Report Title:

Pest Inspection, Quarantine, and Eradication Service Fee

Description:

Makes various amendments to the agricultural inspection and biosecurity laws, including the following:  (1) Exempts aggregate bulk freight, cement bulk freight, coal bulk freight, and liquid bulk freight from the Pest Inspection, Quarantine, and Eradication Service fee; (2) Increases the purposes for expenditures from the Pest Inspection, Quarantine, and Eradication Fund; (3) Requires the deposit of fees and fines relating to agricultural inspections into the Pest Inspection, Quarantine, and Eradication Fund; and (4) Repeals the Permit Revolving Fund, and Microorganism Import Certification Revolving Fund and transfers the moneys in those funds into the Pest Inspection, Quarantine, and Eradication Fund.  (HB2294 HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.