Report Title:

Agriculture; Approp.; Kauai Tropical Fruit Disinfestation Facility

Description:

Appropriates funds for the reopening of the Kauai Tropical Fruit disinfestation facility and an incubator community kitchen. (SB1432 SD2)

THE SENATE

S.B. NO.

1432

TWENTY-SECOND LEGISLATURE, 2003

S.D. 2

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO DIVERSIFIED AGRICULTURE.

 

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

SECTION 1. The purpose of this Act is to support the Hawaii state constitution that mandates the State to increase agricultural self-sufficiency and to promote diversified agriculture. This Act will also help to create jobs, promote Kauai's economy, and productively utilize the state-owned Kauai fruit disinfestation facility.

Through a legislative initiative and in coordination with the University of Hawaii office of technology transfer and economic development, the State purchased three and one-half acres of land immediately adjacent to the Lihue airport. Utilizing state and federal funds, the Kauai tropical fruit disinfestation facility was constructed and first placed into operation in early 1998 primarily for the treatment of papaya for shipment to mainland markets. With interest so expressed, it was the intent to eventually treat and export Kauai Sunrise Papaya to Japan. Also planned was the treatment and exportation of exotic tropical fruits, such as mango, lychee, rambutan, longan, and carambola.

In accordance with the state procurement code's bid process, the facility was operated by a private entity until May 2000, when the operator returned to the mainland. The facility has since remained idle.

In a critical meeting on Saturday, January 18, 2003, attended by Kauai legislators and eighteen key individuals representing the University of Hawaii (board of regents, college of tropical agriculture and human resources, Kauai community college, extension service), agribusiness development corporation, Kauai county economic development office, the United States Department of Agriculture Office of Rural Development, the Kauai Farm Bureau, and the private sector, the following conclusions were reached:

(1) The facility can be a viable operation given previously attained and anticipated production, sales, and marketing figures;

(2) The facility can play a vital role in the promotion of Kauai's agricultural industry and economy and in the creation of needed jobs;

(3) With anticipated viability and need, the facility should be activated to serve the island and to realize a continuing return on the imbedded investment of public funds;

(4) Marketing and business plans should be updated;

(5) Costs of repair and or replacement of equipment, such as chamber probes and electrical systems, are estimated at $100,000;

(6) Co-location of a "full service" or "community kitchen" at this facility to support a broader range of agricultural, food processing, and value-added products. This feature will stimulate a more diversified utilization of the facility and contribute to the creative development of other marketable agricultural products employing a wider range of Kauai grown produce. This operation will be modeled after other proven successful kitchens in the State;

(7) It was recommended that design work, facility refurbishment and renovations, and the development and implementation of an initial management system for the operation of the facility be conducted under the supervision of Kauai community college in cooperation with the University of Hawaii, college of tropical agriculture and human resources;

An advisory board would be formed to include representation from all involved groups, organizations, and interested parties to ensure a broad base of support and in-put in the planning, implementation, and on-going operation of the facility;

(8) Subsequent actions for consideration would be the transfer of ownership of the facility from the University of Hawaii to the agribusiness development corporation for lease and operation by a private preferably nonprofit entity; and

(9) This facility must become financially self-sufficient and profitable for its membership.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2003-2004, to refurbish the Kauai tropical fruit disinfestation facility.

The sum appropriated shall be expended by the agribusiness development corporation for the purposes of this Act.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2003-2004, for the co-location and establishment of an incubator Community Kitchen within the Kauai tropical fruit disinfestation facility, including building fabrication, equipment, and operating costs for one year.

The sum appropriated shall be expended by the agribusiness development corporation for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 2003.