Report Title:

GO Bonds; Dual Line Water System for Upcountry Kula, Maui

Description:

Authorizes issuance of $6,000,000 in general obligation bonds for an agricultural dual line water system to supply untreated water for irrigation purposes to farmers as a less costly means of irrigating Upcountry Kula farms.

THE SENATE

S.B. NO.

2416

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

authorizing the issuance of general obligations bonds FOR THE AGRICULTURAL WATER DISTRIBUTION SYSTEM, UPCOUNTRY KULA, MAUI.

 

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

SECTION 1. The legislature finds that in order 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, there are competing uses for the existing water system between potable water and agricultural water in Kula, Maui. These competing uses on the existing system are causing a heavy burden on the Kula farmers. In addition, the existing water system is being treated to 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 Act is to issue general obligation bonds for an agricultural dual line water system to supply untreated water for irrigation purposes to farmers, as a less costly means of irrigating Upcountry Kula farms. This project is deemed necessary to qualify for federal aid financing and for reimbursement pursuant to Public Law 106-566.

SECTION 2. 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 the purpose of installing a separate agricultural water distribution system to supply untreated water for irrigation purposes to farmers in the Upper Kula, Maui area.

SECTION 3. The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2007, shall lapse as of that date.

SECTION 4. The sum appropriated shall be expended by the department of agriculture for the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2004.

INTRODUCED BY:

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