Bill Text: HI SB1151 | 2012 | Regular Session | Introduced


Bill Title: Agribusiness Development Corporation; Renewable Energy

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [SB1151 Detail]

Download: Hawaii-2012-SB1151-Introduced.html

THE SENATE

S.B. NO.

1151

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to the agribusiness development corporation.

 

 

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

 


     SECTION 1.  While the original purpose of chapter 163D, Hawaii Revised Statutes, was to create a vehicle and process to make optimal use of agriculture assets for the economic, environmental, and social benefit of the people of Hawaii, the legislature finds that more flexibility is needed for the agribusiness development corporation to be able to make lands available for and support the development of renewable energy projects.

     With the passage of Act 73, Session Laws of Hawaii 2010, which took effect on July 1, 2010, a clear mandate was established for the planning and implementation of projects that will contribute to ensuring our State's food and energy security.  In response to this mandate, it is critically important for the agribusiness development corporation to be able to participate in and partner with entities involved with renewable energy development, in addition to the corporation's traditional support of farming and food production.

     The purpose of this Act is to authorize the agribusiness development corporation to support and make land available for renewable energy projects.

     SECTION 2.  Section 163D-1, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§163D-1[]]  Findings and purpose.  The legislature finds that the downsizing of the sugar and pineapple industries is presenting an unprecedented opportunity for the conversion of agriculture into a dynamic growth industry.  Within the next decade, seventy-five thousand acres of agricultural lands and fifty million gallons per day of irrigation water are expected to be released by plantations.  The downsizing of the sugar and pineapple industries will idle a valuable inventory of supporting infrastructure including irrigation systems, roads, drainage systems, processing facilities, workshops, and warehouses.  The challenge to government and business is to conserve and convert the arable lands and their associated production infrastructure in a timely manner into new productive uses that are based upon strategies developed from detailed marketing analysis and monitoring of local, national, and international opportunities.  Constantly evolving economies require an aggressive and dynamic leadership for the promotion and development of agricultural enterprises, and centralized leadership to coordinate industry development, provide industry-wide services, provide marketing assistance, and facilitate investments and coventures in viable enterprises.

     The purpose of this chapter is to create a vehicle and process to make optimal use of agricultural assets for the economic, environmental, and social benefit of the people of Hawaii.  This chapter establishes a public corporation to administer an aggressive and dynamic agribusiness development program.  The corporation shall coordinate and administer programs to assist agricultural enterprises to facilitate the transition of agricultural infrastructure from plantation operations into other agricultural enterprises, to carry on the marketing analysis to direct agricultural industry evolution, and to provide the leadership for the development, financing, improvement, or enhancement of agricultural enterprises.

     In addition, with the passage of Act 73, Session Laws of Hawaii 2010, the legislature further finds that it is in the best interests of Hawaii's people to enhance the State's initiatives toward self-sufficiency in its energy and food requirements and to protect the health and vitality of our environment.  Adding an energy component give the corporation the flexibility to allocate and make available portions of agricultural land and water infrastructure under its control for the purposes of renewable energy, where it makes sense and fits in with the synergy of the existing agricultural industry and business environment.  In support of Act 73, the corporation shall have the power and authority to partner with, make land and water available for, and profit from renewable energy projects; provided that the projects are in accordance with Act 183, Session Laws of Hawaii 2005, relating to important agriculture lands."

     SECTION 3.  Section 163D-2, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Renewable energy" means energy generated from natural resources including but not limited to sunlight, wind, water flow, biomass, tides, wave, and geothermal heat."

     SECTION 4.  Section 163D-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Except as otherwise limited by this chapter, the corporation may:

     (1)  Sue and be sued;

     (2)  Have a seal and alter the same at its pleasure;

     (3)  Make and alter bylaws for its organization and internal management;

     (4)  Adopt rules under chapter 91 necessary to effectuate this chapter in connection with its projects, operations, and properties;

     (5)  Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

     (6)  Carry out surveys, research, and investigations into technological, business, financial, consumer trends, and other aspects of agricultural and renewable energy production in the national and international community;

     (7)  Acquire or contract to acquire by grant or purchase any real, personal, or mixed property or any interest therein for its immediate or future use for the purposes of this chapter; own, hold, improve, and rehabilitate any real, personal, or mixed property acquired, and sell, assign, exchange, transfer, convey, lease, or otherwise dispose of, or encumber the same;

     (8)  By itself, or in partnership with qualified persons, acquire, construct, reconstruct, rehabilitate, improve, alter, or repair any infrastructure or accessory facilities in connection with any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of, or encumber any project;

     (9)  In cooperation with the department of agriculture, pursuant to chapter 167, or otherwise through direct investment or coventure with a professional investor or enterprise or any other person, or otherwise, to acquire, construct, operate, and maintain water facilities for conveying, distributing, and transmitting water for irrigation [and], agricultural, and renewable energy uses at rates or charges determined by the corporation; provided that:

         (A)  This chapter shall not be construed to permit or allow the department of agriculture or any agribusiness development corporation to:

              (i)  Amend or modify rights or entitlements to water as provided for by article XI, section 7, of the Constitution of the State of Hawaii, or the Hawaiian Homes Commission Act, 1920, as amended, and chapter 168;

             (ii)  Diminish or abridge the traditional and customary rights of ahupuaa tenants who inhabited the Hawaiian Islands prior to 1778 under sections 1-1 and 7-1; and

             (iii)  Impair, abridge, or terminate the legal rights or interests to water and its uses, whether by lease, easement, or other means, which are possessed or held by organizations whose primary purpose is to benefit people of Hawaiian ancestry; and

         (B)  All usage of water shall be in accordance with chapter [[]174C[]] and other applicable laws in the State;

    (10)  Assist agricultural enterprises by conducting detailed marketing analysis and developing marketing and promotional strategies to strengthen the position of those enterprises and to better exploit local, national, and international markets;

    (11)  Carry out specialized programs designed to develop new markets for Hawaii agricultural products;

    (12)  Receive, examine, and determine the acceptability of  applications of qualified persons for allowances or grants for the development of new crops and agricultural products, the expansion of established agricultural enterprises, and the altering of existing agricultural enterprises;

    (13)  Coordinate its activities with any federal or state farm credit programs;

    (14)  Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on the terms and conditions it deems advisable;

    (15)  Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, in order to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

    (16)  Procure insurance against any loss in connection with its property and other assets and operations in such amounts and from such insurers as it deems desirable;

    (17)  Accept gifts or grants in any form from any public agency or any other source; and

    (18)  Do all things necessary or proper to carry out the purposes of this chapter."

     SECTION 5.  Section 163D-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The corporation may develop and implement agricultural and renewable energy projects where large tracts of agricultural land have been or will be taken out of productive agriculture or where, through detailed analysis, opportunities exist to exploit potential local, national, and international markets."

     SECTION 6.  Section 163D-31, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The legislature may authorize the corporation to acquire agricultural lands for the protection of agricultural lands, public land banking, or the promotion of farm ownership [and], diversified agriculture[.], and renewable energy development."

     SECTION 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.


     SECTION 8.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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Report Title:

Agribusiness Development Corporation; Renewable Energy

 

Description:

Authorizes the agribusiness development corporation to support and make land available for renewable energy projects.

 

 

 

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

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