HB1724

SECTION 1. The legislature finds that diversification of the State's economy is necessary to lessen the economic dependence on tourism and to respond to the economic downturn exacerbated by the coronavirus disease 2019 pandemic. Supporting local aquacultural productions can help the State move towards greater food sustainability and expand a home-based workforce. The legislature further finds that seafood demand outpaces supply and world fishery resources are quickly depleting. There is significant growth potential for the aquaculture industry in the State and for aspiring entrepreneurs looking to establish themselves in this global emerging industry.

Accordingly, the purpose of this Act is to:

(1) Establish provisions relating to the department of agriculture's governing of the business of aquaculture;

(2) Grant exclusive property rights to persons who lawfully obtain the cultured progeny of wild plants and animals by brood stock acquisition;

(3) Clarify that any person who takes aquaculture products without lawful entitlement shall be subject to prosecution for theft;

(4) Authorize the department of agriculture to regulate the transportation, purchase, possession, and sale of specific aquaculture products as may be necessary to protect indigenous species;

(5) Establish prohibitions relating to the spawning, incubating, or cultivation of transgenic fish species or any exotic species of finfish;

(6) Make exemptions for certain research activities; and

(7) Require the department of agriculture to prepare programmatic environmental impact reports.

SECTION 2. Chapter 141 Hawaii Revised Statutes, is amended by adding nine new sections to part IV to be appropriately designated and to read as follows:

"§141- Definitions. As used in this part:

"Aquaculture" means that form of agriculture devoted to the propagation, cultivation, maintenance, and harvesting of aquatic plants and animals in marine, brackish, and fresh water. The term "aquaculture" does not include species of ornamental marine or freshwater plants and animals not utilized for human consumption or bait purposes that are maintained in closed systems for personal, pet industry, or hobby purposes.

"Chairperson" means the chairperson of the board of agriculture.

"Department" means the department of agriculture.

"Exotic species" means a fish that is not indigenous to Hawaii waters and does not currently exist as a viable population in a wild condition in the State.

"Indigenous species" means any aquatic life, wildlife, or land plant species growing or living naturally in Hawaii without having been brought to Hawaii by humans.

"Person" means any natural person or any partnership, corporation, limited liability company, trust, or other type of association.

§141- Powers, duties, and activities of the department. (a) The business of aquaculture shall be governed by this part and shall be exempt from any other provisions relating to commercial fishing, harvesting, processing, and marketing.

(b) Except as provided in this part, the business of aquaculture processing, distribution, and marketing shall be administered by the chairperson.

(c) The chairperson may enter into an agreement with the chairperson of the board of land and natural resources for the resolution of any conflict regarding jurisdiction that arises under this part.

(d) Any costs incurred by the department in implementing this part shall be recovered pursuant to this part.

§141- Brood stock acquisition; exclusive property rights. The cultured progeny of wild plants and animals lawfully obtained by brood stock acquisition are the exclusive property of that person who cultured them or that person's successor in interest.

§141- Theft. Any person who takes aquaculture products without lawful entitlement shall be subject to prosecution for theft.

§141- Protection of indigenous species. (a) When necessary for the protection of indigenous species, the department may regulate the transportation, purchase, possession, and sale of specific aquaculture products as provided for in this section.

(b) The department may determine that aquaculture products shall be accompanied by a document containing any of the following information:

(1) The name, address, and registration number of the aquaculture producer;

(2) The species;

(3) The weight, volume, or count within the container;

(4) The date of the shipment; and

(5) The name and address of the intended receiver.

(c) The department may require that certain aquaculture products shall be additionally identified as being aquaculture produced.

§141- Prohibited activities. (a) In the waters of the Pacific Ocean that are regulated by the State, it shall be unlawful to spawn, incubate, or cultivate any transgenic fish species, or any exotic species of finfish. This section shall not apply to species that are propagated and cultured for either of the following:

(1) Research conducted by, or on behalf of, the department; or

(2) Release into the ocean waters for the purpose of recovery, restoration, or enhancement of indigenous species.

(b) Nothing in this section authorizes artificial propagation, rearing, or stocking of transgenic freshwater and marine fishes, invertebrates, crustaceans, or mollusks.

§141- Research activities. (a) Medical or scientific research conducted on transgenic finfish species by accredited academic institutions or private entities for research only and not for commercial production may be authorized pursuant to a permit issued by the department.

(b) At a minimum, research activities conducted pursuant to this section shall be conducted in a closed system that has eliminated the risk of escape of transgenic finfish species and any potential disease they may transmit.

(c) A permit application applied for pursuant to this section shall include a research plan specifying the objectives and goals of the proposed research.

(d) Nothing in this section shall be construed to require the disclosure of proprietary information.

§141- Programmatic environmental reports. (a) The department shall prepare programmatic environmental impact reports for existing and potential commercial aquaculture operations in both coastal and inland areas of the State if both of the following conditions are met:

(1) Funds are appropriated to the department for this purpose; and

(2) Matching funds are provided by the aquaculture industry.

(b) For purposes of this section, "matching funds" includes but is not limited to any funds expended by the aquaculture industry before January 1, 2022, for the preparation of a programmatic environmental impact report.

§141- Rulemaking authority. The department shall adopt rules pursuant to chapter 91 to effectuate the purpose of this part."

SECTION 3. Chapter 141, Hawaii Revised Statues, is amended by designating sections 141-2.5 to 141-2.7 as part IV and inserting a title before section 141-2.5 to read as follows:

"PART IV. AQUACULTURE"

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1724
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII