THE SENATE	S.B. NO.	136
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO AGRICULTURE.

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

     SECTION 1.  Section 141-10, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  Subject to legislative appropriation, moneys in the special fund may be expended for the following purposes:

(1)  The awarding of grants to farmers for agricultural production or processing activity;

(2)  The acquisition of real property for agricultural production or processing activity;

(3)  The improvement of real property, dams, reservoirs, irrigation systems, and transportation networks necessary to promote agricultural production or processing activity[;], including investigative studies to identify and assess potentially necessary improvements and repairs to dams, reservoirs, irrigation systems, and in-land transportation networks;

(4)  The purchase of equipment necessary for agricultural production or processing activity;

(5)  The conduct of research on and testing of agricultural products and markets;

     (6)  The funding of agricultural inspector positions within the department of agriculture;

(7)  The promotion and marketing of agricultural products grown or raised in the State; and

(8)  Any other activity intended to increase agricultural production or processing that may lead to reduced importation of food, fodder, or feed from outside the State."

     SECTION 2.  Section 243-3.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  In addition to any other taxes provided by law, subject to the exemptions set forth in section 243-7, there is hereby imposed a state environmental response, energy, and food security tax on each barrel or fractional part of a barrel of petroleum product sold by a distributor to any retail dealer or end user of petroleum product, other than a refiner.  The tax shall be $1.05 on each barrel or fractional part of a barrel of petroleum product that is not aviation fuel; provided that of the tax collected pursuant to this subsection:

     (1)  5 cents of the tax on each barrel shall be deposited into the environmental response revolving fund established under section 128D-2;

(2)  15 cents of the tax on each barrel shall be deposited into the energy security special fund established under section 201-12.8;

(3)  10 cents of the tax on each barrel shall be deposited into the energy systems development special fund established under section 304A-2169; and

(4)  [15] 35 cents of the tax on each barrel shall be deposited into the agricultural development and food security special fund established under section 141‑10.

     The tax imposed by this subsection shall be paid by the distributor of the petroleum product."

     SECTION 3.  Act 73, Session Laws of Hawaii 2010, is amended by amending section 14 to read as follows:

     "SECTION 14.  This Act shall take effect on July 1, 2010; provided that sections 2, 3, and 4[, and 7] of this Act shall be repealed on June 30, 2015, and sections 128D-2, 201-12.8, and 243-3.5, Hawaii Revised Statutes, shall be reenacted in the form in which they read on June 30, 2010."

     SECTION 4.  There is appropriated out of the agricultural development and food security special fund the sum of $           or so much thereof as may be necessary for fiscal year 2011-2012 for plans, design, engineering, investigative studies, construction, renovation, repair, maintenance, and equipment for dam, reservoir, or irrigation system improvements; provided that no funds shall be expended under this Act unless private revenues are received as matching funds on a dollar-for-dollar basis; provided further that priority for expenditures shall be given to dams or reservoirs based on the following criteria in descending order of importance:

     (1)  Dams and reservoirs classified as high hazard, as defined in section 179D-3, Hawaii Revised Statutes;

     (2)  Dams and reservoirs needing a potentially high degree of dam or reservoir safety improvements pursuant to investigation under section 179D-22; or

     (3)  Dams and reservoirs providing beneficial uses to the public such as the support of agricultural activity, provision of drinking water, or serving as important drainage facilities.

     The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  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, 2011; provided further that the amendments made by section 2 of this Act to section 243-3.5, Hawaii Revised Statutes, shall not be repealed when that section is reenacted on June 30, 2015, pursuant to Act 73, Session Laws of Hawaii 2010.

INTRODUCED BY:

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Report Title:

Agriculture; Dams and Reservoirs

Description:

Clarifies that appropriations may be made from the agricultural development and food security special fund for dams and reservoir improvements and investigative studies.  Increases barrel tax to 35 cents on each barrel.  Makes permanent the agricultural development and food security special fund.  Makes appropriation for dam, reservoir, and irrigation system improvements on a matching basis with private entities.

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