Authorizes and directs the agribusiness development corporation
to establish agricultural subdivisions.  Appropriates funds for
this purpose.  (HB949 HD2)

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that hundreds of acres of
 2 former sugarcane land throughout the State have lain idle due to
 3 the closure of many of Hawaii's plantations.  Meanwhile, hundreds
 4 of displaced sugar workers are searching for jobs and
 5 opportunities to enter into agricultural endeavors.  Others who
 6 are already farming or ranching successfully elsewhere are
 7 interested in leasing land to expand their operations.
 8      The coordinating entity, the agribusiness development
 9 corporation, is empowered statutorily to facilitate and promote
10 agriculture in the State through the reuse of former plantation
11 lands, water delivery systems, roadways, and other necessary
12 infrastructure.
13      The purpose of this Act is to authorize and direct the
14 agribusiness development corporation to establish agricultural
15 subdivisions in the most expeditious and cost-effective manner
16 possible.
17      SECTION 2.  Section 163D-17, Hawaii Revised Statutes, is
18 amended as follows:

Page 2                                                     949
                                     H.B. NO.           H.D. 2

 1      (1)  By amending subsection (b) to read:
 2      "(b)  The corporation shall hold the fund in an account or
 3 accounts separate from other funds.  The corporation shall invest
 4 and reinvest the fund and the income thereof to:
 5      (1)  Purchase qualified securities issued by enterprises for
 6           the purpose of raising seed capital; provided that the
 7           investment shall comply with the requirements of this
 8           chapter;
 9      (2)  Make grants, loans, and provide other monetary forms of
10           assistance necessary to carry out the purposes of this
11           chapter; [and]
12      (3)  Develop agricultural subdivisions; and
13      [(3)] (4)  Purchase securities as may be lawful investments
14           for fiduciaries in the State.
15      All appropriations, grants, contractual reimbursements, and
16 other funds not designated for this purpose may be used to pay
17 for the proper general expenses and to carry out the purposes of
18 the corporation."
19      (2)  By amending subsection (f) to read:
20      "(f)  No investment, loan, grant, or use of corporate funds
21 for the purposes of this chapter shall be subject to chapter 42F,
22 103, or 103D."

Page 3                                                     949
                                     H.B. NO.           H.D. 2

 1      SECTION 3.  The agribusiness development corporation shall
 2 consider the following actions for the purpose of establishing
 3 agricultural subdivisions:
 4      (1)  Seek long-term leases from the department of land and
 5           natural resources and other landowners to allow
 6           qualified tenants to hold long-term subleases under the
 7           agribusiness development corporation; and
 8      (2)  Cooperate with and receive assistance from financial
 9           institutions for the following:
10           (a)  Collection or payment of maintenance fees;
11           (b)  Collection or payment of lease rents;
12           (c)  Collection of assessments for common
13                infrastructure improvements;
14           (d)  Collection of master lease rent;
15           (e)  Collection or payment of property taxes;
16           (f)  Collection or payment of insurance fees;
17           (g)  Agribusiness development corporation management
18                fees; and
19           (h)  Assisting tenants in seeking financial assistance
20                from private and public lenders and applicable
21                federal loan guarantee programs.

Page 4                                                     949
                                     H.B. NO.           H.D. 2

 1      SECTION 4.  There is appropriated out of the general
 2 revenues of the State of Hawaii the sum of $1 or so much thereof
 3 as may be necessary for fiscal year 1999-2000 to be deposited
 4 into the Hawaii agricultural development special fund for the
 5 establishment of agricultural subdivisions.
 6      SECTION 5.  The sum appropriated shall be expended by the
 7 agribusiness development corporation for the purposes of this
 8 Act.
 9      SECTION 6.  This Act shall take effect on July 1, 1999.