HOUSE OF REPRESENTATIVES	H.B. NO.	1947
TWENTY-SIXTH LEGISLATURE, 2012		H.D. 2
STATE OF HAWAII		S.D. 1

A BILL FOR AN ACT

RELATING TO AGRICULTURE.

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

PART I

     SECTION 1.  The importance of agriculture to the State is reflected in article XI, section 3, of the state constitution.  Agriculture not only provides food and other basic needs to society, but has also proven to be an economic engine supporting the State.  Hawaii's farms and farmers reflect the heritage and diversity of many cultures and people.  They are the cornerstone of the State's goals for food security, sustainability, and self-sufficiency and are essential for producing local food and other agricultural products for local consumption.

     The number of small farms in Hawaii has grown substantially during the last ten years, reflecting a changing agricultural model from plantations to smaller farms with diverse cropping and marketing systems that create new sources for agricultural products, including food.  These new farms also have the potential to significantly increase employment. 

     There is also a renewed interest in school gardens where children learn economic, scientific, and cultural lessons through agricultural-based curriculum.

     The agricultural industry has recognized that there are practices that if performed correctly, can result in good stewardship of the land, increased worker safety, and ultimately lead to safe products for the consumer.  These practices, known as good agricultural practices, are written to provide uniform, statewide standards and acceptable management practices based on science.  These practices can assist producers in the various sectors of the industry in improving their own agricultural managerial routines.  Good agricultural practices are reviewed annually and revised as new scientific discoveries and changing economic conditions require.  Good agricultural practices are recognized by regulatory agencies such as the United States Food and Drug Administration.

     Good agricultural practices for livestock provide guidance for ranchers to ensure sound animal welfare practices and promote animal husbandry and care.  State adoption and recognition of these standards are critical to allow farmers and ranchers to have access to the widest array of tools to provide agricultural products to the people of Hawaii.

     The purpose of this part is to strengthen the agricultural safety and security program of the department of agriculture by, among other things:

     (1)  Authorizing the department to adopt good agricultural practices;

     (2)  Authorizing the department to establish a program to audit and certify that producers are following good agricultural practices; and

     (3)  Establishing the agricultural practices audit and certification revolving fund to establish and maintain the good agricultural practices program.

     SECTION 2.  Chapter 147, Hawaii Revised Statutes, is amended by adding a new section to part VIII to be appropriately designated and to read as follows:

"§147-   Agricultural practices audit and certification revolving fund. (a)  There is established the agricultural practices audit and certification revolving fund to be administered by the department.

(b)  Fees received by the department for conducting audits and certifications under this part shall be deposited into the revolving fund.

(c)  The proceeds of the revolving fund shall be expended by the department to establish and update generally accepted agricultural and management practices, conduct the audit and certification services of this part, and assist, train, and educate producers to achieve certification.

(d)  The department may receive additional funds from other governmental agencies, agricultural organizations, and nonprofit organizations to carry out the purposes of this section.  Funds received by the department under this subsection shall be deposited into the agricultural practices audit and certification revolving fund."

     SECTION 3.  Chapter 147, Hawaii Revised Statutes, is amended by amending its title to read as follows:

"CHAPTER 147

GRADES [AND], STANDARDS, SAFETY, AND SECURITY"

     SECTION 4.  Section 147-101, Hawaii Revised Statutes, is amended to read as follows:

"§147-101  Certification services revolving fund.  There is established a certification services revolving fund for use by the department of agriculture to support certification or audit services established under parts I, III, IV, [VIII,] and IX.  Moneys in the fund may be expended for materials, salaries, equipment, training, travel, and other costs related to providing certification or audit services.  Notwithstanding sections 147-10, 147-34, 147-64, [147-114] and 147-126, moneys derived from the certification or audit services provided by temporary inspectors employed under this part or from charges for traveling expenses or extraordinary services shall be deposited into the fund."

     SECTION 5.  Section 147-102, Hawaii Revised Statutes, is amended to read as follows:

"[[]§147-102[]]  Certification and audit services.  The department of agriculture shall fix, assess, and collect fees for certification or audit services provided by temporary inspectors employed under this part.  The fees shall be in amounts necessary to cover all costs of the administration and provision of the certification or audit services provided under this part; provided that the department of agriculture shall establish charges for traveling expenses and extraordinary services when the performance of the services involves unusual cost.  The fees and charges established by the department of agriculture shall not be subject to chapter 91.  The department of agriculture may employ temporary inspectors to assist in providing certification or audit services under parts I, III, IV, [VIII,] and IX, and those temporary inspectors shall be exempt from chapter 76."

     SECTION 6.  Section 147-111, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted to read as follows:

     ""Good agricultural practices" means the practices adopted by the department pursuant to section 147-112.

"Producer" means any person engaged within the State in the growing or production for market of any agricultural commodity, or any cooperative association of such persons."

     SECTION 7.  Section 147-112, Hawaii Revised Statutes, is amended to read as follows:

"[[]§147-112[]  Cooperative agreements and contracts to provide] Agricultural safety and security; auditing and certification services. (a)  The department may [enter into cooperative agreements with the United States Department of Agriculture or other agreements and contracts with private parties or other governmental agencies for the purposes of:] establish a program to audit and certify that producers are:

     (1)  [Auditing and certifying that applicants are following good agricultural, handling, processing, and manufacturing practices;] Following good agricultural practices adopted by the department pursuant to subsection (b); and

     (2)  Maintaining food security and [product] traceability.

(b)  The department may adopt good agricultural practices as deemed necessary after giving due consideration to available information of the department and written recommendations from the University of Hawaii college of tropical agriculture and human resources and any other governmental or private organization, the input of which is solicited by the department.

The department may adopt good agricultural practices without necessity of compliance with chapter 91; provided that the department shall hold at least one public hearing in each county before adopting or materially revising the good agricultural practices.  The determination of whether a proposal requires a public hearing shall rest exclusively with the department.

(c)  Participation in the program under subsection (a) shall be voluntary for producers.  The department shall conduct audit and certification services under the program only for producers who apply, pay the relevant fee, and comply with the requirements set by the department.

As part of the program, the department shall assist, train, and educate producers in complying with the applicable good agricultural practices.

The department shall not require any producer to be subject to audit or certification if the producer has not applied to participate in the program."

     SECTION 8.  Section 147-113, Hawaii Revised Statutes, is amended to read as follows:

"[[]§147-113[]]  Audits and certification; [requests necessary.] employees and agents; agreements and contracts. (a)  The department may designate any employee or agent of the department to conduct the audits and [certification] certifications authorized under this part at the request of persons having a financial interest in the business or product.  These audits and certification may be requested, but in no case shall be required by the department.

(b)  The department may enter into cooperative agreements with the United States Department of Agriculture or other agreements and contracts with private parties or other governmental agencies to conduct the audits and certifications authorized under this part."

     SECTION 9.  Section 147-114, Hawaii Revised Statutes, is amended to read as follows:

"[[]§147-114[]]  Fees and deposit of moneys.  (a)  The department shall fix, assess, and collect fees for the audit and certification services provided under this part.  The fees shall be as established under cooperative agreement with the United States Department of Agriculture or other governmental agencies or, if not applicable, as established by rule [under section 147-7.] adopted pursuant to chapter 91.  The department may also charge an amount necessary to cover all costs [of traveling expenses] for travel and extraordinary services when the performance of the services involves unusual cost in their performance.

     (b)  [Except for fees collected by the department pursuant to part VII, all] All fees and expenses collected by the department pursuant to this part shall be deposited with the director of finance to the credit of the [general fund.] agricultural practices audit and certification revolving fund."

PART II

     SECTION 10.  Chapter 328, Hawaii Revised Statutes, is amended by adding a new section to part IVA to be appropriately designated and to read as follows:

"§328-   Honey producers without access to municipal water; exemption. (a)  A producer of raw unprocessed or processed honey, as defined in sections 147-21 and 147-51, respectively, who does not have access to municipal water supplies or infrastructure, shall not be required to process honey in a food-processing establishment certified by the department of health if the honey producer:

(1) Uses water that has been treated to meet or exceed state and federal drinking water standards;

(2) Prepares the honey adjacent to permanent or temporary hand-washing facilities; and

(3) Complies with rules adopted by the department of health to protect the health and safety of the public.

(b)  The honey producer shall test the water used for processing honey no less than once a month and shall maintain water quality records for a period of no less than two years.  The honey producer shall make those records available to the department upon request."

     SECTION 11.  Section 328-79, Hawaii Revised Statutes, is amended to read as follows:

"[[]§328-79[]]  Home-based agricultural producer of honey; exemption.  A home-based agricultural producer of honey shall not be required to process honey in a certified honey house or food processing establishment, or be required to obtain a permit from the department [of health,], if the producer:

     (1)  Sells less than [fifty] five hundred gallons of honey a year;

     (2)  Sells the honey directly to consumers[;] or directly to a retail store that in turn sells the honey directly to consumers; and

     (3)  Labels each container of honey sold with:

         (A)  The name and address of the producer;

         (B)  The net weight and volume of the honey, by standard measure;

         (C)  The date the honey was produced; [and]

(D) The statement, "Honey should not be consumed by infants under one year of age." in clear and conspicuous print;

       [(D)]  (E)  The statement, "This product is home-produced and processed." in clear and conspicuous print[.]; and

(F) The statement, "This honey was not produced or packaged in a department inspected facility." in clear and conspicuous print."

PART III

     SECTION 12.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 13.  This Act shall take effect on July 1, 2025; provided that this Act shall be repealed on June 30, 2015, and all sections and chapter titles of the Hawaii Revised Statutes amended by sections 3 through 9 of this Act shall be reenacted in the form in which they read on the day before the effective date of this Act.

Report Title:

Agriculture; Agricultural Safety and Security Program

Description:

Authorizes the department of agriculture to establish a good agricultural practices audit and certification program.  Authorizes the department of agriculture to conduct audit and certification services.  Specifies that the audit and certification program is voluntary for producers.  Requires the charge of fees and expenses.  Establishes an agricultural practices audit and certification revolving fund for the audit and certification program.  Exempts honey producers who do not have access to municipal water supplies or infrastructure from processing the honey in a food processing establishment certified by the department of health if certain requirements are met.  Increases the threshold for honey production, for which certain in a certified honey house or food processing establishment producers of honey are exempt from the requirement that honey be processed; provided that the producer meets certain labeling requirements.  Effective 7/1/2025.  Sunsets 6/30/2015.  (SD1)

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