Report Title:

CIP; Agriculture

Description:

Authorizes general obligation bonds and appropriates funds for capital improvement projects pertaining to agriculture. (HB2799 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

2799

TWENTY-SECOND LEGISLATURE, 2004

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO CAPITAL IMPROVEMENTS PERTAINING TO AGRICULTURE.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

SECTION 1. The legislature finds that the State Water Code requires the department of agriculture to prepare a comprehensive agricultural water use and development plan. Although the department of agriculture has received funding for the initial phase of the plan, additional funds are needed to complete the plan, which includes a master irrigation inventory plan for state agricultural use.

The purpose of this part is to authorize the issuance of general obligation bonds for a comprehensive state agricultural water use and development plan.

SECTION 2. The director of finance is authorized to issue general obligation bonds in the sum of $500,000 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 2004-2005 to complete the agricultural water use and development plan. This project is deemed necessary to qualify for federal aid financing or reimbursement pursuant to Public Law 106-566.

PART II

SECTION 3. The legislature finds that West Hawaii's agricultural sector is heavily dependent on macadamia nut production. However, the South Kona region is susceptible to long droughts which cause major crop losses to macadamia nut farms and other small, diversified farm crops.

The purpose of this part is to authorize the issuance of general obligation bonds for the planning and design of the Honomalino irrigation system to provide a reliable source of agricultural water to the South Kona region.

SECTION 4. The director of finance is authorized to issue general obligation bonds in the sum of $750,000 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 2004-2005 to fund the planning and design of the Honomalino irrigation system. This project is deemed necessary to qualify for federal aid financing or reimbursement.

PART III

SECTION 5. The legislature finds that for agriculture to succeed in Hawaii, farmers must have access to affordable land and water resources. It is vital that farmers are provided the necessary infrastructure to fully maximize their production capabilities as well as compete in the global market.

The legislature also finds that Upcountry Kula, Maui, is considered one of the most productive agricultural communities in the State. However, this area suffers from inconsistent and inadequate domestic and agricultural water supply. The shortage of irrigation water has forced farmers to cultivate smaller areas of their farms and has resulted in crop losses during periods of drought. In addition, the existing water system is being treated to meet drinking water standards, thus making the water expensive for agricultural use. In some cases, Kula farmers are paying three to four times more for agricultural water than farmers in other parts of the State.

The purpose of this part is to appropriate funds for an agricultural dual line water system in Upcountry Kula, Maui. Under this project, a separate agricultural water distribution system will supply untreated and affordable water to irrigate four hundred seventy-three acres of cropland in the Upper Kula area.

SECTION 6. The director of finance is authorized to issue general obligation bonds in the sum of $6,000,000 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 2004-2005 for an agricultural dual line water system in Upcountry Kula, Maui. This project is deemed necessary to qualify for federal aid financing or reimbursement.

PART IV

SECTION 7. The appropriations made for the capital improvement projects authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriations are made; provided that all moneys from the appropriations that are unencumbered as of June 30, 2006, shall lapse as of that date; provided further that this lapsing date shall not apply to parts II and III when such appropriations have been deemed necessary to qualify for federal aid financing or reimbursement.

SECTION 8. The sums appropriated shall be expended by the department of agriculture for the purposes of this Act.

SECTION 9. This Act shall take effect on July 1, 2004.