THE SENATE	S.B. NO.	2522
TWENTY-NINTH LEGISLATURE, 2018		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 moneys 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; and

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

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 program to be administered by the corporation. Subject to approval by the board, the corporation may provide moneys 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. 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 may 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) Any appropriation by the legislature into the special fund;

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

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

Moneys in the special fund shall be used by the corporation to invest in existing or new agriculture businesses under the agriculture accelerator program pursuant to subsection (a).

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

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2018.

Report Title:

Agriculture; Agribusiness Development Corporation; Special Fund

Description:

Establishes the agriculture accelerator program to authorize the agribusiness development corporation to 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 moneys that the agribusiness development corporation may invest in agriculture businesses under the agriculture accelerator program. (SD1)

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