HOUSE OF REPRESENTATIVES

H.B. NO.

2290

TWENTY-FIFTH LEGISLATURE, 2010

 

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 purpose of this Act is to address agriculture by:

(1) Establishing the agriculture inspection and certification special fund under the department of agriculture;

(2) Transmitting all fees, civil penalties, and moneys collected by the department of agriculture to the agriculture inspection and certification special fund instead of the general fund;

(3) Allowing the department to enter into agreements with government and private agencies to hire temporary inspectors;

(4) Transferring all moneys and unpaid obligations of the certification services revolving fund on June 30, 2010, to the agriculture inspection and certification special fund; and

(5) Repealing the certification services revolving fund.

SECTION 2. Chapter 141, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and read as follows:

"141-    Agriculture inspection and certification special fund. (a) There is established within the state treasury the agriculture inspection and certification special fund.

(b) The following sources of funds shall be deposited into the special fund:

(1) Fees, charges, and penalties designated by law or rule for deposit into the special fund;

(2) Fines from violations of chapter 147 and 150 or rules adopted pursuant to section 141-4;

(3) Federal funds received for inspecting, certifying, weighing, classifying, or grading of agricultural commodities to be exported from or shipped within the State;

(4) Grants and gifts;

(5) All interest earned or accrued on moneys deposited in the fund; and

(6) Any other moneys made available to the fund.

(c) The moneys in the agriculture inspection and certification special fund shall be expended by the department for the inspection, certification, weighing, or grading of agricultural commodities that are to be exported from or shipped within the State.

No moneys from the general or other special or revolving funds shall be expended by the department for the administration, operation, or enforcement of chapter 147, chapter 150, or rules adopted pursuant to section 141-4; provided that the expenditure of moneys from the general fund for central services and departmental administrative expenses shall be permitted."

SECTION 3. Section 141-4, Hawaii Revised Statutes, is amended to read as follows:

"141-4 Weights of coffee; rules. The department of agriculture may make rules respecting the weighing of coffee prior to its shipment to points outside the State, and providing for the certification of weights thereof. Further, a reasonable schedule of fees to defray the expense of administering this section shall be established by the department, which fees shall be collected and [deposited with] transmitted to the state director of finance [to the credit of the general] for deposit into the agriculture inspection and certification fund; provided that the department shall consult the appropriate industries, organizations, and agencies prior to the promulgation of the rules."

SECTION 4. Section 147-10, Hawaii Revised Statutes, is amended to read as follows:

"147-10 Income from certification and agriculture control activities. [Except for fees collected by the department pursuant to part VII, all] All fees, expenses, and penalties collected by the department pursuant to this part shall be [deposited with] transmitted to the director of finance [to the credit of the general] for deposit into the agriculture inspection and eradication special fund."

SECTION 5. Section 147-34, Hawaii Revised Statutes, is amended to read as follows:

"147-34 Inspection; certification fees. The board of agriculture may designate any employee or agent of the department as an inspector to classify and inspect fresh and processed flowers and foliage for quality and condition and to determine if containers, packing materials, and methods of packing meet the minimum requirements established. In addition the inspector may classify and inspect flowers and foliage for quality and condition at the request of persons having a financial interest in the commodities in order to ascertain and to certify to those persons the grade, classification, quality, or condition thereof and other pertinent facts. The department may fix, assess, and collect or cause to be collected fees for those certification services when they are performed by the employees of the department. The fees shall be on a uniform basis and in an amount reasonably necessary to cover the cost of certification services provided at the request of persons having a financial interest. [Except for fees collected by the department pursuant to part VII, all] All fees collected by the department pursuant to this part shall be [deposited with] transmitted to the state director of finance [to the credit of the general] for deposit into the agriculture inspection and certification special fund."

SECTION 6. Section 147-64, Hawaii Revised Statutes, is amended to read as follows:

"147-64 Deposit of moneys. [Except for fees collected by the department pursuant to part VII, all] All fees, charges, expenses, civil penalties, and other moneys collected by the department under this part or any rules prescribed by the department pursuant to this part shall be [deposited with] transmitted to the state director of finance [to the credit of the general] for deposit into the agriculture inspection and certification special fund."

SECTION 7. Section 147-74, Hawaii Revised Statutes, is amended to read as follows:

"147-74 Grading standards and regulations[.]; fees. (a) Subject to chapter 91, the department of agriculture may make rules with respect to:

(1) Sale and transportation for sale of eggs for human consumption;

(2) Specific grades or standards of quality, condition and size or weight classes which shall conform when practical to those established by the United States Department of Agriculture as local conditions will permit;

(3) Inspection and classification;

(4) Assessment and collection of fees for requested certification as to grade, standard of quality, condition, and size or weight classes;

(5) Labeling of containers of imported and locally produced eggs and marking of individual imported eggs as to origin;

(6) Seller's invoice for sale of eggs;

(7) Records of imported shell eggs of foreign origin;

(8) Methods of determining egg quality, which shall not include recandling or any other method applied to eggs in interstate commerce which is discriminatory or impairs that commerce in any way or requires a cost increase of eggs in interstate commerce;

(9) Enforcement of this part and of the rules adopted under this part.

(b) Any fees collected pursuant to subsection (a)(4) shall be transmitted to the director of finance for deposit into the agriculture inspection and certification fund."

SECTION 8. Section 147-97, Hawaii Revised Statutes, is amended to read as follows:

"147-97 Disposition of fees. All fees collected under this part shall be [paid into a special fund established by the department of agriculture and shall be expended for the purposes of this part.] transmitted to the director of finance for deposit into the agriculture inspection and certification special fund."

SECTION 9. Section 147-102, Hawaii Revised Statutes, is amended to read as follows:

"[[]147-102[]] Certification and audit services. The department of agriculture shall fix, assess, and collect fees for certification or audit services provided by temporary inspectors employed under this [part.] chapter. The fees shall be in amounts necessary to cover all costs of the administration and provision of the certification or audit services provided under this [part;] chapter; provided that the department of agriculture shall establish charges for traveling expenses and extraordinary services when the performance of the services involves unusual cost. The fees and charges established by the department of agriculture shall not be subject to chapter 91[.] and, upon collection, shall be transmitted to the director of finance for deposit into the agriculture inspection and certification fund. The department of agriculture may employ temporary inspectors to assist in providing certification or audit services under parts I, III, IV, VIII, and IX, and those temporary inspectors shall be exempt from chapter 76."

SECTION 10. Section 147-112, Hawaii Revised Statutes, is amended to read as follows:

"[[]147-112[]] Cooperative agreements and contracts to provide auditing and certification services. The department may enter into cooperative agreements with the United States Department of Agriculture or other agreements and contracts with private parties or other governmental agencies for the purposes of:

(1) Auditing and certifying that applicants are following good agricultural, handling, processing, and manufacturing practices; [and]

(2) Hiring and paying travel and other expenses for temporary inspectors to perform the certification and audit services required under this chapter; and

[(2)] (3) Maintaining food security and product traceability."

SECTION 11. Section 147-114, Hawaii Revised Statutes, is amended to read as follows:

"[[]147-114[]] Fees and deposit of moneys. (a) The department shall fix, assess, and collect fees for the audit and certification services provided under this part[.], including fees for hiring temporary inspectors to perform the services. The fees shall be as established under cooperative agreement with the United States Department of Agriculture or other governmental agencies or, if not applicable, as established by rule under section 147-7. The department [may] shall also charge an amount necessary to cover all costs of traveling expenses and extraordinary services when the performance of the services involves unusual cost in their performance.

(b) [Except for fees collected by the department pursuant to part VII, all] All fees and expenses collected by the department pursuant to this part shall be [deposited with] transmitted to the director of finance [to the credit of the general] for deposit into the agriculture inspection and certification special fund."

SECTION 12. Section 147-126, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) [Except for fees collected by the department pursuant to part VII, all] All fees and expenses collected by the department pursuant to this part shall be [deposited with] transmitted to the director of finance [to the credit of the general] for deposit into the agriculture inspection and certification general fund."

SECTION 13. Section 147-101, Hawaii Revised Statutes, is repealed.

["147-101 Certification services revolving fund. There is established a certification services revolving fund for use by the department of agriculture to support certification or audit services established under parts I, III, IV, VIII, and IX. Moneys in the fund may be expended for materials, salaries, equipment, training, travel, and other costs related to providing certification or audit services. Notwithstanding sections 147-10, 147-34, 147-64, 147-114 and 147-126, moneys derived from the certification or audit services provided by temporary inspectors employed under this part or from charges for traveling expenses or extraordinary services shall be deposited into the fund."]

SECTION 14. (a) The repeal of section 147-101, Hawaii Revised Statutes, shall not rescind any fees authorized or imposed under that section that would have been deposited into the certification services revolving fund. From July 1, 2010, the fees under those sections shall be deposited into the agriculture inspection and certification fund.

(b) On the effective date of this Act:

(1) All moneys in the certification services revolving fund on June 30, 2010, shall be transferred to the agriculture inspection and certification fund;

(2) All unpaid obligations of the certification services revolving fund on June 30, 2010, shall become payable from the agriculture inspection and certification fund; and

(3) The certification services revolving fund shall cease to exist.

SECTION 15. (a) Between July 1, 2010 and September 30, 2010, the department of agriculture shall adopt new or amend existing rules to impose or increase fees authorized to be charged under section 141-4 and chapter 147, Hawaii Revised Statutes, without regard to the public notice and public hearing requirements of section 91-3, Hawaii Revised Statutes, the small business impact review requirements of chapter 201M, Hawaii Revised Statutes, or the limit on fee increases under section 92-28, Hawaii Revised Statutes. The department shall set the fees at amounts intended to generate sufficient revenues to pay the operation and maintenance costs of implementing the agriculture inspection and certification programs of chapters 141 and 147, Hawaii Revised Statutes, and central services and departmental administrative expense assessments of section 36-27 and section 36-30, Hawaii Revised Statutes.

(b) If, by September 30, 2010, the department of agriculture has not complied with subsection (a), then the fee charged for each inspection or certification conducted under authority of section 141-4 and chapter 147 shall be $         commencing October 1, 2010.

(c) Any subsequent amendments to the rules adopted or amended pursuant to subsection (a) or the fee established under subsection (b) shall be subject to all applicable provisions of chapter 91, chapter 201M, and section 92-28, Hawaii Revised Statutes.

SECTION 16. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 17. This Act shall take effect on July 1, 2010.

 

INTRODUCED BY:

_____________________________

 

 



Report Title:

Agriculture Inspection and Certification Special Fund Establishment

 

Description:

Establishes an agriculture inspection and certification special fund under the department of agriculture. Requires that special fund moneys be used for inspecting, certifying, weighing, classifying, or grading of agricultural products to be exported from or shipped within the State.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.