SB2992

THE SENATE	S.B. NO.	2992
THIRTY-FIRST LEGISLATURE, 2022
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 legislature finds that local agriculture is essential to Hawaii. Eighty-five per cent of all food consumed in the State is imported, leaving Hawaii vulnerable to natural disasters and supply chain disruptions. Increasing the amount of food produced locally is key to reducing the need for imported foods.

The legislature further finds, however, that high costs in Hawaii limit the competitiveness of local agriculture and have undermined efforts to expand local food production. Direct support for local agricultural producers can help overcome the high costs faced by Hawaii's agricultural sector.

Accordingly, the purpose of this Act is to establish an agriculture investment fund to provide a dedicated funding source for the local agricultural sector. Through the fund, the department of agriculture will support agricultural producers and alleviate economic strains on the sector.

SECTION 2. Chapter 141, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§141- Agricultural investment fund; establishment. (a) There is established within the state treasury the agricultural investment special fund.

(b) 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.

(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, irrigation systems, and transportation networks necessary to promote agricultural production or processing activity;

(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.

(d) The department of agriculture shall submit a report to the legislature no later than twenty days prior to the convening of each regular session on the status and progress of existing programs and activities and the status of new programs and activities funded under the agricultural investment special fund. The report shall also include:

(1) The spending plan of the agricultural investment special fund;

(2) All expenditures of agricultural development and food security special fund moneys;

(3) The targeted markets of the expenditures, including the reason for selecting those markets;

(4) The persons to be served using the expenditures; and

(5) The specific objectives of the expenditures, including measurable outcomes."

SECTION 3. There is appropriated out of the general fund the sum of $ or so much thereof as may be necessary for fiscal year 2022-2023 to be deposited into the agriculture investment special fund.

SECTION 4. There is appropriated out of the agriculture investment special fund the sum of $ or so much thereof as may be necessary for fiscal year 2022-2023 for the department of agriculture to support local agricultural producers; provided that no funds shall be made available under this Act unless the department of agriculture obtains fifty per cent matching funds from private sources.

The sum appropriated shall be expended by the department of agriculture for the purposes of this Act.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2022.

INTRODUCED BY:	_____________________________