Honolulu, Hawaii

, 2019


RE: S.B. No. 223

S.D. 2

H.D. 1





Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii




Your Committee on Finance, to which was referred S.B. No. 223, S.D. 2, H.D. 1, entitled:




begs leave to report as follows:


The purpose of this measure is to enhance and maintain the state irrigation systems by:


(1) With respect to the East Kauai Irrigation System (System):


(A) Appropriating general funds for the Agricultural Resource Management Division (Division) of the Department of Agriculture (DOA) to establish five full-time equivalent positions, including an Irrigation District Manager position, three Irrigation System Worker II positions, and one Office Assistant III position;


(B) Appropriating fifty percent of the funds for the Engineering Program Manager position and Agricultural Lands Program Manager position from the Non-agricultural Park Lands Special Fund and Agricultural Park Special Fund, respectively;

(C) Transferring operational authority of specified portions of the System, currently operated and maintained by the East Kauai Water Users' Cooperative (Cooperative), to DOA;


(D) Until the transfer to DOA, authorizing DOA to enter into contracts with the Cooperative to bill and collect fees for deposit into the general fund and to operate and maintain the System; and


(E) Authorizing an extension to July 1, 2021, whereby the Cooperative must obtain a streams diversion works permit from the Department of Land and Natural Resources; provided that the Cooperative can demonstrate significant progress in the permit application process; and


(2) Authorizing general obligation bonds and appropriating funds to assist the Division with plans, designs, land acquisition, and equipment to increase state irrigation system capacity statewide.


East Kauai Water Users' Cooperative, Hawaii Farm Bureau, Saiva Siddhanta Church, Kalepa Koalition, Larry Jefts Farms, LLC, and a concerned individual supported this measure. DOA offered comments on this measure.


As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 223, S.D. 2, H.D. 1, and recommends that it pass Third Reading.


Respectfully submitted on behalf of the members of the Committee on Finance,