Agri. Water Syst; Estab.

Establishes a separate agricultural water supply and delivery
system under the board of agriculture for the farms in upcountry
Maui.  (HB898 SD1)

THE SENATE                              H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                S.D. 1
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that the leeward slopes of
 2 Haleakala Crater that make up the upcountry region of Maui are
 3 best suited for the commercial production of several agricultural
 4 crops that are unique or originated in this upcountry region of
 5 Maui.  These crops are the Maui onion, protea, and persimmon.
 6 The legislature also finds that the region is impacted by severe
 7 droughts that cause serious interruption to the water supply over
 8 long periods of time.  With increased emphasis on the development
 9 of diversified agricultural crops in the conversion of Hawaii's
10 agriculture industry out of sugar, the opportunity is ripe to
11 provide infrastructure improvements to this proven agricultural
12 region.  To make optimal use of this farming region, the
13 legislature further finds that an agricultural water system is
14 necessary for the economic and social benefit of the people of
15 Hawaii and that such an undertaking is in the public interest.
16      The purpose of this Act is to establish a separate
17 agricultural water supply and delivery system under the board of
18 agriculture for the farms in the upcountry region of Maui.  
19      SECTION 2.  Notwithstanding any law to the contrary, the

Page 2                                                     898
                                     H.B. NO.           H.D. 2
                                                        S.D. 1

 1 board of agriculture, in addition to any other powers granted,
 2 shall have the power to administer this Act.  The board shall
 3 have the power to conduct surveys, studies, and engineering for
 4 the construction of water facilities to adequately serve the
 5 agricultural water demand of the upcountry region of Maui.  It
 6 shall also have the power to operate, maintain, and improve the
 7 system, including setting, adjusting, and collecting water tolls
 8 to defray the cost of operation and to make the system self-
 9 sufficient, except as provided in section 3 of this Act.  It
10 shall further have the power to contract with other government
11 agencies for the construction or financing of the system.
12      The board of agriculture shall have the power of eminent
13 domain to acquire the necessary easements, rights-of-way, and
14 real property for diverting, conveying, pumping, storing,
15 distributing, and transmitting agricultural water for
16 agricultural uses and for such other purposes as may properly
17 fall within the scope of its activities in creating, managing,
18 controlling, operating, and maintaining the water system.  The
19 power of eminent domain shall be exercised in the manner and
20 under the procedures provided by chapter 101, Hawaii Revised
21 Statutes.  It shall also have the power to adopt rules as may be
22 necessary pursuant to chapter 91, Hawaii Revised Statutes, for
23 the purpose of carrying out this Act.

Page 3                                                     898
                                     H.B. NO.           H.D. 2
                                                        S.D. 1

 1      SECTION 3.  The board of agriculture shall fix a development
 2 period for the construction of the system facilities authorized
 3 by this Act, not to exceed ten years from and including the first
 4 calendar year in which agricultural water is first delivered for
 5 the purposes of this Act.  During this development period, the
 6 board of agriculture shall annually adjust and fix water tolls to
 7 be charged.  The cost of operation and maintenance of the system
 8 may be subsidized through legislative appropriations and through
 9 government grants, loans, or reimbursements as may be made
10 available from government entities.
11      SECTION 4.  The moneys from the irrigation system revolving
12 fund pursuant to section 167-22, Hawaii Revised Statutes, shall
13 be expended upon warrants drawn by the comptroller for expenses
14 directly attributable to the cost of the water system facilities
15 authorized by this Act.
16      Notwithstanding any provision of this Act or any other law
17 to the contrary, it is expressly provided that, in the event that
18 it is found possible to secure federal funds made available under
19 any act of Congress to be expended in connection with or for the
20 construction of this project, the board of agriculture may enter
21 into such undertaking with the proper agencies of the federal
22 government, agree to such conditions, and perform such other acts
23 and terms as may be necessary as a condition to securing the

Page 4                                                     898
                                     H.B. NO.           H.D. 2
                                                        S.D. 1

 1 funding.
 2      SECTION 5.  There is appropriated out of the general
 3 revenues of the State of Hawaii the sum of $   or so much thereof
 4 as may be necessary for fiscal year 1999-2000 and $   or so much
 5 thereof as may be necessary for fiscal year 2000-2001 to carry
 6 out the purposes of this Act.
 7      SECTION 6.  The sums appropriated shall be expended by the
 8 department of agriculture for the purposes of this Act.
 9      SECTION 7.  If any provision of this Act, or the application
10 thereof to any person or circumstance is held invalid, the
11 invalidity does not affect other provisions or applications of
12 the Act which can be given effect without the invalid provision
13 or application, and to this end the provisions of this Act are
14 severable.
15      SECTION 8.  This Act shall take effect on July 1, 1999.