Agri. Water Syst; Estab.

Establishes a separate agricultural water supply and delivery
system under the board of agriculture for the farms in upcountry
Maui.  (SD2)

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

                   A  BILL  FOR  AN  ACT



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

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

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

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                                     S.B. NO.           S.D. 2

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