HOUSE OF REPRESENTATIVES

H.B. NO.

1474

TWENTY-NINTH LEGISLATURE, 2017

 

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 legislature finds that the industrial hemp pilot program authorized pursuant to Act 228, Session Laws of Hawaii 2016, codified as part II of chapter 141, Hawaii Revised Statutes, has been progressing and going through the rulemaking process. However, several amendments are necessary to prepare the pilot program for full implementation.

Accordingly, the purpose of this Act is to ensure that a county real property tax program will treat industrial hemp and its cultivation as an agricultural product, use, and activity and not assess an area planted with hemp at full market value. This Act also creates a special fund to support the pilot program, into which may be deposited fees collected for the pilot program, moneys appropriated by the legislature, and interest or return on investments from the special fund.

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

"141- Industrial hemp special fund; established. (a) There is established the industrial hemp special fund into which shall be deposited:

(1) Appropriations by the legislature to the special fund; and

(2) Fees collected by the department of agriculture in relation to the industrial hemp pilot program established pursuant to this part.

All interest earned or accrued on moneys deposited into the fund, and all return on investments earned from moneys deposited into the fund, shall become part of the fund. The fund shall be administered by the department of agriculture.

(b) The department of agriculture may expend moneys from the fund to carry out the purposes of this part, including but not limited to the hiring of employees, specialists, and consultants necessary to complete projects related to the purposes of this part.

(c) Moneys deposited into or appropriated to the fund shall remain available until they are obligated or until the fund is terminated.

(d) If the fund is terminated, all moneys in the fund shall be transferred to the general fund of the State; provided that all unexpended or unencumbered balances shall be disbursed in accordance with any requirements established by funding sources and for purposes consistent with this part."

SECTION 3. Section 141-33, Hawaii Revised Statutes, is amended to read as follows:

"[[]141-33[]] Licensing. (a) Each applicant for an industrial hemp license shall submit a signed, complete, accurate, and legible application form provided by the board between January 1 and April 1 of the year in which the applicant plans to grow industrial hemp, which shall include the following:

(1) The applicant's name, mailing address, and phone number in Hawaii and, if applicable, electronic mail address;

(2) If the applicant is an individual or partnership, the date of birth of the individual or partners;

(3) If the applicant is any business entity other than an individual, partnership, or institution of higher education, documentation that the entity is authorized to do business in Hawaii;

(4) The cultivated variety that will be sown;

(5) The source and amount of certified seed to be used;

(6) The number of acres to be cultivated for seed, viable grain, industrial products, or any combination thereof;

(7) The global positioning system coordinates in decimal degrees from the central most point of the growing area to be cultivated and a map showing the location of the growing area in terms of its address or legal description;

(8) A statement that the applicant is the owner of the growing area to be used for the cultivation or a statement, signed by the owner of the growing area, indicating that the owner has consented to that use;

(9) The address of the place in Hawaii where the applicant will keep the records, books, electronic data, or other documents that are required by this part;

(10) The name and address of each place where the industrial hemp is to be stored, sold, or provided, indicating for each place the form of the industrial hemp; and

(11) The applicant's acknowledgment and agreement to the following terms and conditions:

(A) Any information obtained by the board may be publicly disclosed and provided to law enforcement agencies without further notice to the applicant or licensee;

(B) The applicant agrees to allow any inspection and sampling that the board deems necessary;

(C) The applicant agrees to pay for any sampling and analysis costs that the board deems necessary;

(D) The applicant agrees to submit all required reports by the applicable due dates specified by the board; and

(E) The applicant and any partner, directors, or members have not been convicted of any felony related to the possession, production, sale, or distribution of a controlled substance in any form in this or any other country.

(b) An application may be received beginning on January 1 of each year and shall be signed by the applicant or, in the case of a business entity, one of its officers, directors, or partners, as the case may be, and indicate that all information and documents submitted in support of the application are correct and complete to the best of the applicant's knowledge.

(c) Any incomplete application for a license, or an application received after April 1 of any year, shall be denied.

(d) In addition to the application form, each applicant for a license shall submit a fee set by the chairperson. If the fee does not accompany the application, the application for a license will be deemed incomplete.

(e) The annual license fee for production of industrial hemp shall be $250 plus $2 per acre. Moneys collected from license fees shall be used to cover the costs of implementing, administering, and enforcing this part.

(f) All licenses shall be valid for two years from the date of issuance, after which the licensee shall renew the license and pay the renewal fee, to be established by rules of the board.

(g) Any licensee who wishes to alter the growing areas on which the licensee will conduct industrial hemp cultivation shall, before altering the area, submit to the board an updated address, global positioning system location, and map specifying the proposed alteration. If the chairperson receives and approves the updated information, the chairperson shall notify the licensee in writing that the licensee may cultivate industrial hemp on the altered land area.

(h) A licensee that wishes to change the seed cultivar grown shall submit to the chairperson the name of the new, approved seed cultivar to be grown. If the chairperson receives and approves the change to the seed cultivar, the chairperson shall notify the licensee that the licensee may cultivate the new, approved seed cultivar.

(i) If the chairperson determines that the requirements for a license pursuant to this part are satisfied, the chairperson shall issue a license to the applicant.

(j) Industrial hemp cultivated in accordance with the industrial hemp pilot program established pursuant to this part shall qualify as an agricultural product, use, and activity in each relevant county for the effective period of the license.

(k) Any agricultural land used for cultivation of industrial hemp in accordance with the industrial hemp pilot program established pursuant to this part shall qualify for the minimum dedication period and the agricultural land shall be assessed at the lowest percentage of fair market value or other calculation provided for by ordinance for the effective period of the license.

(l) The cultivation of industrial hemp shall be limited to licensed owners, lessees, or occupiers of lands situated within the state agricultural land district."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

 

INTRODUCED BY:

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Report Title:

Industrial Hemp; Pilot Program; Industrial Hemp Special Fund; Established; Property Tax; Assessment

 

Description:

Establishes the Industrial Hemp Special Fund. Provides that agricultural land utilized to grow industrial hemp shall qualify for the minimum dedication period and be assessed at the lowest percentage of fair market value. Clarifies that the cultivation of industrial hemp shall be limited to licensed owners, lessees, or occupiers of agricultural lands.

 

 

 

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