Report Title:

Terminal Markets for Agricultural Products; Appropriations

Description:

Appropriates funds to plan a terminal market pilot program on the Big Island; appropriates funds for DOA to hire a consultant to assist in planning terminal markets; authorizes GO bonds for construction and equipment for a terminal market and vacuum cooling plant on Hawaii; requires the consultant to work with DOA to form a Committee relating to terminal markets. (HB159 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

159

TWENTY-SECOND LEGISLATURE, 2003

H.D. 1

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 there is a need to address the weakened state of Hawaii's economy to improve the state's economic foundation and increase opportunity for all Hawaii residents.

Currently, farmers are hindered from selling food because of their inability to consolidate, process, and ship marketable quantities of food. The development of a pilot program is necessary to start a coordinated statewide network for agricultural processing, consolidation, marketing, and shipping facilities. Facilities for this purpose are referred to as terminal markets.

Terminal markets enable small and large farmers to sell crops for military and private food requirements through better processing, consolidation of small farm offerings, dependable delivery, and quality assurance. Operators of terminal markets in Hawaii should be bonded to assure timely payment for all foods accepted from farm, dairy, and ranch producers.

Because the nation is in a state of preparedness for war, it is essential that every possible action be taken to increase the availability of fresh foods for the public, the military, and for export to the mainland.

The purpose of this Act is to support a coordinated, statewide network of agricultural processing, marketing, and shipping facilities by establishing a terminal market pilot program on the island of Hawaii. This Act appropriates:

(1) $200,000 for planning of a pilot program on the island of Hawaii;

(2) $50,000 to hire a consultant to assist in planning the program; and

(3) $3,000,000 in general obligation bonds for construction and equipment costs of a terminal market and vacuum cooling plant for the island of Hawaii.

In addition, this Act requires the consultant to work with the department of agriculture to form a committee, reflecting the interests affected by this Act, to recommend policies, rules, and procedures to be followed by any operator chosen by the department of agriculture to operate terminal markets under this Act.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $200,000 or so much thereof as may be necessary for fiscal year 2003-2004 for the purpose of planning a pilot program on the island of Hawaii to demonstrate the first of several linked terminal markets to serve food producers, distributors, retailers, military buyers, private distributors, and retail outlets.

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

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $50,000 or so much thereof as may be necessary for fiscal year 2003-2004 for the department of agriculture to hire a consultant, who shall be exempt from chapters 76, 78, and 89, to:

(1) Plan terminal markets on the islands of Maui and Hawaii to accept orders, process products for shipment, and to ship fresh foods to wholesale buyers using transportation available at the ports of Hilo and Kahului;

(2) Plan for the operation and coordination of similar facilities on Kauai and Oahu to be capable of filling military and private orders; and

(3) Prepare to build facilities and provide necessary equipment to achieve marketing goals.

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

SECTION 4. (a) The consultant, who shall be a person with experience working with agricultural production and marketing, and knowledge of military food purchasing procedures, shall coordinate with the department of agriculture to form a committee that reflects the interests affected by this Act. The members of the committee shall include but not be limited to:

(1) One representative each from the farm bureau serving Maui, the island of Hawaii, and Oahu;

(2) One representative of the mayor of Maui;

(3) One representative of the mayor of the island of Hawaii;

(4) One representative of the University of Hawaii college of tropical agriculture and human resources at Hilo;

(5) One representative of the agriculture research station at Mealani;

(6) One person with a minimum of five years experience with growing and selling fresh produce to hotels, retail market changes, and the federal defense logistics agency; and

(7) One representative of the Hawaii agriculture research center.

(b) The committee shall elect from among its members a chairperson. The committee shall recommend policies, rules, and procedures to be followed by any operator chosen by the department of agriculture in operating terminal markets under this Act. The chairperson may request, from the department of agriculture, reimbursements for:

(1) Travel expenses for members;

(2) Costs of providing notification to the public; and

(3) Reports of public meetings regarding the purposes of the Act and issuance of a summary report on committee recommendations if desired by the committee.

SECTION 5. The director of finance is authorized to issue general obligation bonds in the sum of $3,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2003-2004 for construction and equipment for the terminal market and vacuum cooling plant for the island of Hawaii, including provision of communications capability necessary to coordinate orders from buyers worldwide between facilities on Maui, Hawaii, and Oahu.

SECTION 6. The appropriation made for the capital improvement project authorized in section 5 of this Act shall not lapse at the end of the fiscal year for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2006, shall lapse as of that date.

SECTION 7. The sum appropriated in section 5 of this Act shall be expended by the department of agriculture for the purposes of this Act.

SECTION 8. This Act shall take effect on July 1, 2003.