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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2418 |
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THIRTY-FIRST LEGISLATURE, 2022 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO AGRICULTURE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. Section 163D-1, Hawaii Revised Statutes, is amended to read as follows:
"[[]§163D-1[]]
Findings and purpose. The
legislature finds that the downsizing of the sugar and pineapple industries [is
presenting] presented an unprecedented opportunity for the
conversion of agriculture into a dynamic growth industry. Within the next decade, [seventy-five
thousand] the State can use public agricultural lands to enhance the local
economy, provide employment opportunities, decrease reliance on imported agricultural
products, and provide more sources of locally grown food for residents. Thousands of acres of agricultural lands
and fifty million gallons per day of irrigation water [are expected to be]
were released by plantations. The
downsizing of the sugar and pineapple industries [will idle] idled and
left vacant a valuable inventory of supporting infrastructure including
irrigation systems, roads, drainage systems, processing facilities, workshops,
and warehouses[.] which are still largely underutilized. The challenge to government and business is
to still conserve and convert the arable lands and their associated
production infrastructure in a timely manner into new productive uses [that
are based upon strategies developed from detailed marketing analysis and
monitoring of local, national, and international opportunities. Constantly evolving economies require an aggressive].
Aggressive and dynamic leadership [for
the promotion] can play a critically important role in promoting and
[development of] developing agricultural enterprises, [and centralized
leadership to coordinate] coordinating industry development, [provide]
providing industry-wide services, [provide] providing
marketing assistance, and [facilitate] facilitating investments
and coventures in viable enterprises.
The purpose of this chapter is to
create a vehicle and process to make optimal use of agricultural assets for the
economic, environmental, and social benefit of the people of Hawaii. This chapter establishes a public corporation
to administer an aggressive and dynamic agribusiness development program. The purposes of the corporation shall be
to support the production of local agricultural products for local consumption
in a manner that is economically and environmentally sustainable while
continuing to develop commercial exports of locally produced agriculture
products. To further these purposes, the
corporation shall coordinate and administer programs to assist agricultural
enterprises to facilitate the transition of agricultural infrastructure from
plantation operations into other agricultural enterprises, [to carry on the
marketing analysis to direct agricultural industry evolution, and to provide
the leadership for the development, financing, improvement, or enhancement of
agricultural enterprises.] increase local production of agricultural
products for local consumption, reduce the State's reliance on imported
agricultural products, and increase access to farmland and related infrastructure
for small local farmers and cooperatives."
SECTION 2. Section 163D-2, Hawaii Revised Statutes, is amended by amending the definition of "agriculture" to read as follows:
""Agriculture" means
the production for [marketing] consumption within the State and
exporting of plant and animal life on land and within ponds and other bodies of
water for food, fiber, and raw materials for value-added products, and any
agricultural enterprise or enterprises organized for the production of
agricultural materials or value-added products based on detailed marketing
analysis and strategies to exploit profitable potentials in local, national,
and international markets, including general farming, cane growing, fruit
growing, flower growing, aquaculture, growing of timber and forest products,
apiary, grazing, dairying, and the production of any form of livestock or
poultry, and their appurtenant services and facilities."
SECTION 3. Section 163D-3, Hawaii Revised Statutes, is amended to read as follows:
"§163D-3 Agribusiness development corporation; board of directors; established. (a) There is established the agribusiness development corporation, which shall be a public body corporate and politic and an instrumentality and agency of the State. The corporation shall be headed by a board of directors. The corporation shall be placed within the department of agriculture for administrative purposes, but the corporation may later incorporate as a nonprofit corporation if this proves desirable to further its objectives; provided that such reorganization as a nonprofit corporation shall not adversely affect the federal tax status of the interest on any bonds issued to finance any project or project facility.
(b)
The board of directors of the corporation shall consist of [eleven]
thirteen voting members, of whom [eight] ten shall be
appointed by the governor. The terms of
these [eight] ten members shall be four years; provided that,
commencing on July 1, 2005, the governor shall reduce the terms of those
initially appointed so as to provide, as nearly as can be, for the expiration
of an equal number of terms at intervals of one year. The [eight] ten members shall
be selected on the basis of their knowledge, experience, and proven expertise
in small and large businesses within the agricultural industry, agricultural
economics, banking, real estate, finance, promotion, marketing, and management[.];
provided that at least:
(1) Three members
shall have substantial experience in local food production;
(2) One member
shall have substantial experience in organic and natural farming practices; and
(3) One member
shall have demonstrated expertise in Native Hawaiian traditional and customary agricultural
practices, such as having:
(A) A
college degree in a relevant field, including Hawaiian studies, Native Hawaiian
traditional and customary practices, or a related subject area;
(B) Work
history that demonstrates an appropriate level of knowledge in Native Hawaiian
traditional and customary practices; or
(C) Substantial
experience as a Native Hawaiian traditional and customary practitioner.
Of these [eight] ten members, one
shall be from the city and county of Honolulu, one shall be from the county of
Hawaii, one shall be from the county of Maui, one shall be from the county of
Kauai, and [four] six shall be appointed at-large. In the selection of these ten members, the governor
shall consult with government and agricultural community stakeholders. The director of business, economic
development, and tourism; the chairperson of the board of agriculture; and the
chairperson of the board of land and natural resources, or their designated
representatives, shall be ex-officio, voting members of the board. All members shall continue in office until
their respective successors have been appointed and qualified. The board shall annually elect its
chairperson from among its members; provided that the chairperson shall not be
an ex-officio member.
(c) The members of the board shall serve without compensation, but shall be reimbursed for actual expenses incurred in the performance of their duties.
(d) The board shall appoint an executive director, who shall serve at the pleasure of the board and shall be exempt from chapter 76. The salary of the executive director shall be set by the board.
(e) The board shall develop and document annual
goals and performance measures for the executive director that allow the board
to annually evaluate the executive director's work to ensure compliance by the
corporation with statutory requirements and achievement of its statutory
purposes.
(f) The board shall evaluate and document the
evaluation of the executive director's performance annually, or more frequently
upon the request of at least four board members, based on annual goals,
performance measures, and other relevant criteria.
(g) The board shall document the specific authority delegated to the executive director, including but not limited to the types of access and use of corporation property for which the executive director can approve without notice to or approval by the board, and the rent credits and other amendments to board-approved contract terms that the executive director may approve without notice to or approval by the board.
[(e)] (h) The board, through its executive director,
may appoint officers, agents, and employees; prescribe their duties and
qualifications; and fix their salaries, without regard to chapter 76."
SECTION 4. Section 163D-4, Hawaii Revised Statutes, is amended to read as follows:
"§163D-4 Powers; generally. (a) Except as otherwise limited by this chapter, the corporation may:
(1) Sue and be sued;
(2) Have a seal and alter the same at its pleasure;
(3) Make and alter bylaws for its organization and internal management;
(4) Adopt rules under chapter 91 necessary to effectuate this chapter in connection with its projects, operations, and properties;
(5) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;
[(6) Carry out
surveys, research, and investigations into technological, business, financial,
consumer trends, and other aspects of agricultural production in the national
and international community;
(7)] (6) Acquire or contract to acquire by grant or
purchase any real, personal, or mixed property or any interest therein for its
immediate or future use for the purposes of this chapter; own, hold, improve,
and rehabilitate any real, personal, or mixed property acquired, and sell,
assign, exchange, transfer, convey, lease, or otherwise dispose of, or encumber
the same;
[(8)] (7) By itself, or in partnership with qualified
persons, acquire, construct, reconstruct, rehabilitate, improve, alter, or
repair any infrastructure or accessory facilities in connection with any
project; own, hold, sell, assign, transfer, convey, exchange, lease, or
otherwise dispose of, or encumber any project;
[(9)] (8) In cooperation with the department of
agriculture, pursuant to chapter 167, or otherwise through direct investment or
coventure with a professional investor or enterprise or any other person, or
otherwise, to acquire, construct, operate, and maintain water facilities for
conveying, distributing, and transmitting water for irrigation and agricultural
uses at rates or charges determined by the corporation; provided that:
(A) This chapter shall not be construed to permit or allow the department of agriculture or any agribusiness development corporation to:
(i) Amend or modify rights or entitlements to water as provided for by article XI, section 7, of the Constitution of the State of Hawaii, or the Hawaiian Homes Commission Act, 1920, as amended, and chapter 168;
(ii) Diminish or abridge the traditional and customary rights of ahupua‘a tenants who inhabited the Hawaiian Islands prior to 1778 under sections 1-1 and 7-1; and
(iii) Impair, abridge, or terminate the legal rights or interests to water and its uses, whether by lease, easement, or other means, which are possessed or held by organizations whose primary purpose is to benefit people of Hawaiian ancestry; and
(B) All usage of water
shall be in accordance with chapter [[]174C[]] and other
applicable laws in the State;
[(10) Assist
agricultural enterprises by conducting detailed marketing analysis and
developing marketing and promotional strategies to strengthen the position of
those enterprises and to better exploit local, national, and international
markets;
(11) Carry out
specialized programs designed to develop new markets for Hawaii agricultural
products;
(12)] (9) Receive, examine, and determine the
acceptability of applications of qualified persons for allowances or grants for
the development of new crops and agricultural products, the expansion of
established agricultural enterprises, and the altering of existing agricultural
enterprises;
[(13)] (10) Coordinate its activities with any federal or
state farm credit programs;
[(14)] (11) Grant options to purchase any project or to
renew any lease entered into by it in connection with any of its projects, on
the terms and conditions it deems advisable;
[(15)] (12) Provide advisory, consultative, training, and
educational services, technical assistance, and advice to any person,
partnership, or corporation, either public or private, in order to carry out
the purposes of this chapter, and engage the services of consultants on a
contractual basis for rendering professional and technical assistance and
advice;
[(16)] (13) Procure insurance against any loss in
connection with its property and other assets and operations in such amounts
and from such insurers as it deems desirable;
[(17)] (14) Accept gifts or grants in any form from any
public agency or any other source; and
[(18)] (15) Do all things necessary or proper to carry out
the purposes of this chapter.
(b)
The corporation shall develop, promote, assist, and market agricultural
products for local markets and local consumption, and shall promote and assist
in commercial export [crops and other crops for local markets.] agricultural
products."
SECTION 5. Section 163D-5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§163D-5[]]
Hawaii agribusiness plan.
(a) The corporation shall prepare
and post on its website the Hawaii agribusiness plan which shall define
and establish goals, objectives, policies, and priority guidelines for its
agribusiness development strategy. The
plan shall include but not be limited to:
(1) An inventory of
agricultural lands with suitable adequate water resources that are or will
become available [due to the downsizing of the sugar and pineapple
industries that] and can be used to meet present and future
agricultural production needs; provided that the inventory of agricultural
lands under this paragraph shall be agricultural lands within the purview of
the corporation;
(2) An inventory of available
agricultural infrastructure [that will be abandoned by sugar and pineapple
industries] such as irrigation systems, drainage systems, processing
facilities, and other accessory facilities[;] that are controlled by
the corporation;
[(3) An analysis of
imported agricultural products and the potential for increasing local
production to replace imported products in a manner that complements existing
local producers and increases Hawaii's agricultural self-sufficiency;
(4) Alternatives in
the establishment of sound financial programs to promote the development of
diversified agriculture;
(5) Feasible
strategies for the promotion, marketing, and distribution of Hawaii
agricultural products in local, national, and international markets;
(6) Programs to
promote and facilitate the absorbing of displaced agricultural workers into
alternative agricultural enterprises;
(7) Strategies to
insure the provision of adequate air and surface transportation services and
supporting facilities to support the agricultural industry in meeting local,
national, and international market needs;
(8) Proposals to
improve the gathering of data and the timely presentation of information on
market demands and trends that can be used to plan future harvests and
production; and]
(3) An analysis and
plan for how lands within the purview of the corporation can be used to
increase local agricultural production to replace imported products in a manner
that complements existing local producers and increases Hawaii's agricultural
self-sufficiency; and
[(9)] (4) Strategies for federal [and],
state [legislative], county, and community stakeholder actions
that will promote the development and enhancement of Hawaii's agricultural
industries.
(b) The Hawaii agribusiness plan goals shall have
specific one-year, five-year, and ten-year objectives and measurable outcomes. The objectives and outcomes shall include
annual performance goals and measures that the corporation shall be evaluated
on annually.
(c) The Hawaii agribusiness plan shall also
include metrics, timeframes, and budget expectations as part of the corporation's
agribusiness development strategy.
[(b)] (d) The corporation shall [revise] update
the Hawaii agribusiness plan [from time to time] no later than July 1,
2024, and every five years thereafter, and shall incorporate the plan in
its annual report to the governor and the legislature as provided in section
163D-19."
PART II
SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $100,000 or so much thereof as may be necessary for fiscal year 2022-2023 for a consultant to assist the agribusiness development corporation in preparing and finalizing the Hawaii agribusiness plan under section 163D-5, Hawaii Revised Statutes, including the facilitation of community stakeholder involvement.
The sum appropriated shall be expended by the agribusiness development corporation for the purposes of this Act.
SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2022-2023 for one full-time equivalent (1.0 FTE) permanent accountant position to provide accounting and other fiscal support services to the agribusiness development corporation.
The sum appropriated shall be expended by the agribusiness development corporation for the purposes of this Act.
SECTION 8. There is appropriated out of the general revenues of the State of Hawaii the sum of $500,000 or so much thereof as may be necessary for fiscal year 2022-2023 for security guard services to address trespassing, abandonment of vehicles on agribusiness development corporation land, and other security issues on vacant land of the agribusiness development corporation; provided that once agribusiness development corporation land is leased, security costs for the property shall be funded by agricultural cooperative association dues of property tenants.
The sum appropriated shall be expended by the agribusiness development corporation for the purposes of this Act.
PART III
SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 10. This Act shall take effect upon its approval; provided that part II of this Act shall take effect on July 1, 2022.
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INTRODUCED BY: |
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Report Title:
ADC; Board of Directors; Powers; Plan; Appropriation
Description:
Amends the focus, scope, and management of the agribusiness development corporation (ADC). Appropriates funds to ADC for a consultant for planning, an accountant, and for security on ADC property.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.