H.B. NO.














relating to agriculture.





     SECTION 1.  Chapter 155D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§155D-    Grants; qualified feed developer.  (a)  Applications for grants submitted by qualified feed developers shall be submitted on a form furnished by the department and shall be filed with accompanying documentation of feed development costs; provided that:

     (1)  The applicant shall comply with applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, or disability;

     (2)  The applicant shall have applied for or received any applicable licenses or permits;

     (3)  The applicant shall indemnify and hold harmless the State and its officers, agents, and employees from all claims arising out of or resulting from the feed sold;

     (4)  The grant shall not exceed a total of $200,000 per qualified feed developer per year; and

     (5)  The department may request an applicant to provide any necessary information for the purposes of verifying actual sales to qualified producers.

     (b)  Documentation of animal feed development costs, as requested by the department, shall be filed for feed developed within the immediate preceding fiscal quarter of filing and shall be effective for feed development costs incurred after June 30, 2015.

     (c)  The applicant shall submit a quarterly financial statement of farm revenues and expenses along with other supporting documents as deemed necessary by the department and filed with the documentation of the feed development costs.  An annual financial statement shall be filed with the department within ninety days following the close of the business' fiscal year after June 28, 2015, for final reconciliation of any reimbursement paid during the previous three quarters within the fiscal year.  The financial statements shall be certified as accurate by the applicant and the preparer of the financial statement on forms prepared by the department.

     (d)  Funds shall be disbursed upon approval by the department to the qualified feed developer for up to fifty per cent of the feed development costs incurred.

     (e)  Feed development costs shall be limited to only the feed developed for qualifying producers and shall not include feed developed for resale or gift or the cost of transportation to Hawaii.  In no case shall costs be reimbursed to a qualified feed developer when, after evaluation and verification by the department, the department determines that the amount of reimbursement will result in an annual profit of more than ten per cent."

     SECTION 2.  Section 155D-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Qualified feed developer" means any person that, at the time of application for and disbursement of funds under this chapter, is in the business of cultivating feed crops to be sold to qualified producers."

     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 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for the livestock revitalization program of the agricultural development division of the department of agriculture that shall be allocated as follows:

     (1)  $         to reimburse qualified producers of milk, pork, eggs, poultry, beef, sheep, lamb, goats, and seafood, for the cost of feed for beef cattle, dairy cows or milking goats, goats raised for meat, sheep, hogs, fish, crustaceans, and poultry; and

     (2)  $         to reimburse qualified feed developers for the costs of development of feed for sale to qualified producers; provided that from the sum appropriated, the department of agriculture may expend up to $15,000  to administer and operate the qualified feed developer grant program pursuant to section 155D-   , Hawaii Revised Statutes, including support services and general administrative overhead.

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

     SECTION 4.  The appropriation made for the purpose authorized under section 3 of this Act shall not lapse at the end of the fiscal year for which the appropriation is made; provided that any balance of any appropriation that is not encumbered as of June 30, 2017, shall lapse as of that date.

     SECTION 5.  New statutory material is underscored.   SECTION 6.  This Act shall take effect on July 1, 2015.








Report Title:

Qualified Feed Developer Grants; Livestock Revitalization Program; Appropriation



Establishes within the Livestock Revitalization Program a grant program for qualified feed developers.




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