THE SENATE	S.B. NO.	1204
TWENTY-NINTH LEGISLATURE, 2017		S.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 provide creative means of financing for agriculture businesses in Hawaii by:

     (1)  Establishing the agriculture accelerator program to authorize the agribusiness development corporation to provide grants and invest in existing or new agriculture businesses approved by the board of directors of the agribusiness development corporation in return for equity in those agriculture businesses;

     (2)  Establishing an agriculture accelerator special fund to provide funds for the agribusiness development corporation to provide grants to and invest in agriculture businesses under the agriculture accelerator program; and

     (3)  Collecting a portion of the per-barrel environmental response, energy, and food security tax to be deposited into the agriculture accelerator special fund.

     SECTION 2.  Chapter 163D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§163D-   Agriculture accelerator program; special fund. (a)  There is established the agriculture accelerator grant program to be administered by the corporation.  The corporation is authorized to provide grants to existing or new agriculture businesses that engage in farming, aquaculture, or ranching activities in the State in return for one to six per cent equity in the agriculture business; provided that these agriculture businesses shall be approved by the board.  Grant moneys received by an agriculture business under the program shall be used for the following purposes:

(1) Purchasing equipment;

(2) Improving energy efficiency;

(3) Studying, planning, and constructing a new process and packaging facility;

(4) Training in food safety technology;

(5) Acquiring branding and marketing support; or

(6) Other uses approved by the board.

(b)  The corporation is authorized to invest in other agriculture businesses under this program in return for equity in the agriculture business; provided that these agriculture businesses shall be approved by the board.

(c)  There is established within the state treasury the agriculture accelerator special fund.  The following moneys shall be deposited into the special fund:

(1) The portion of the environmental response, energy, and food security tax under section 243-3.5;

(2) Any appropriation by the legislature into the special fund;

(3) Any grant or donation made to the special fund; and

(4) Any interest earned on the balance of the special fund.

Money in the special fund shall be used by the corporation to provide grants to and invest in existing or new agriculture businesses under the agriculture accelerator program; provided that any moneys deposited into the special fund shall be expended at the sole discretion of the board to assist agriculture businesses that engage in farming, aquaculture, or ranching activities in the State.

(d)  The board shall adopt rules pursuant to chapter 91 to implement the purposes of this section."

     SECTION 3.  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-2169.1; [and]

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

(5)       cents of the tax on each barrel shall be deposited into the agriculture accelerator special fund established under section 163D-  .

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

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

Agriculture; Agribusiness Development Corporation; Special Fund; Environmental Response, Energy, and Food Security Tax

Description:

Establishes the agriculture accelerator program to authorize the agribusiness development corporation to provide grants and invest in existing or new agriculture businesses approved by the board of directors of the ADC in return for equity in those agriculture businesses.  Establishes an agriculture accelerator special fund to provide funds for the agribusiness development corporation to provide grants to and invest in agriculture businesses under the agriculture accelerator program.  Requires a portion of the environmental response, energy, and food security tax to be deposited into the agriculture accelerator special fund.  Takes effect 7/1/2050.  (SD1)

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