HOUSE OF REPRESENTATIVES	H.B. NO.	1226
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

A BILL FOR AN ACT

relating to the molokai irrigation AND WATER UTILIZATION PROJECT.

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

     SECTION 1.  Section 167-11, Hawaii Revised Statutes, is amended to read as follows:

     "§167-11  Rate policy; sale of excess water.  The board of agriculture shall have the power to fix and adjust rates and charges for the furnishing of irrigation or domestic water and for water service so that the revenues derived therefrom shall be sufficient to cover the cost of operation, maintenance, replacement, and debt service on revenue bonds in compliance with part III of chapter 39, and may make charges as may be necessary to cover the capital cost of the system or other costs incurred in connection with the system.

     Nothing in this chapter shall be construed to prevent the board from selling water to persons other than land occupiers and other consumers within a water project in the event and to the extent that water in excess of the needs of the land occupiers and other consumers may from time to time be available[.]; provided that water from the Molokai irrigation and water utilization project, as described in section 168-4, shall be made available only to the Hawaiian homes commission and lessees of the Hawaiian homes commission."

     SECTION 2.  Section 168-4, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§168-4[] Preference.] Exclusive right.  [To the extent that the same may be necessary from time to time for the satisfaction of their water needs, domestic and agricultural, the] The Hawaiian homes commission and lessees of the Hawaiian homes commission shall at all times[, upon actual need therefor being shown to the board of agriculture,] have [a prior] an exclusive right to [two-thirds of] the water developed for the Molokai irrigation and water utilization project by the tunnel development extending to Waikolu valley and ground water developed west of Waikolu valley, which was planned by the board of land and natural resources as the first stage of the Molokai irrigation project."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.
     SECTION 5.  This Act shall take effect on January 1, 2012.

INTRODUCED BY:

_____________________________

Report Title:

Molokai Irrigation System

Description:

Permits only the Hawaiian Homes Commission and homesteaders to use water from the Molokai irrigation and water utilization project.

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