Bill Text: HI SB118 | 2012 | Regular Session | Introduced

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Bill Title: Agribusiness Development Corporation

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [SB118 Detail]

Download: Hawaii-2012-SB118-Introduced.html

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THE SENATE	S.B. NO.	118
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to agriculture.

 

 

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

 

     SECTION 1.  Chapter 163D, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART   .  AGRICULTURAL PARKS

     "§163D-A  Legislative findings.  (a)  The legislature finds that:

     (1)  Important agricultural lands should be preserved for productive purposes;

     (2)  The contribution of diversified agriculture and aquaculture to export and local markets should be expanded, thereby increasing its importance in the State's economy; and

     (3)  Continued use of the State's agricultural land resources should be ensured by providing lands to new farmers, displaced farmers, and other qualified farmers.

     (b)  In order to meet these goals, the objectives of the State shall include the provision of lands:

     (1)  Of appropriate size and productive potential, with an adequate supply of water, to ensure economically viable farm operations;

     (2)  At reasonable cost with long term tenure and security from urbanization pressure; and

     (3)  With common facilities and activities to encourage farm production and distribution economies.

     §163D-B  Definitions.  For the purpose of this part:

     "Agricultural activities" means the care and production of livestock, livestock products, poultry, or poultry products, or apiary, horticultural, or floricultural products, or the planting, cultivating, and harvesting of crops or trees, including tree farms.

     "Agricultural park" means any agricultural or aquacultural complex so designated by the board for which state land or state funds are used, in order to meet the goals and objectives stated in section 163D-A.  Agricultural buildings, farm residences, and employee dwellings necessary to the production and distribution of agricultural and aquacultural commodities may be considered part of the agricultural park.

     "Aquacultural activities" means the farming or ranching of any plant or animal species in a controlled salt, brackish, or freshwater environment; provided that the farm or ranch is on or directly adjacent to land.

     "Board" means the board of directors of the agribusiness development corporation.

     §163D-C  Authority to plan, develop, and manage agricultural parks.  The corporation shall plan, develop, and manage agricultural parks in accordance with this part, on public lands set aside by the governor for use as agricultural parks pursuant to section 171-11; on other lands with the approval of the board as may be subject to a partnership agreement pursuant to sections 163D-E and 163D-F; and on lands acquired by the corporation by way of foreclosure or voluntary surrender.

     §163D-D  Commercial activity.  The corporation may allow, in each of its existing and future agricultural parks, the disposition of no more than two lots within an agricultural park for the processing, marketing, and displaying of agricultural crops or commodities, which shall include any product created through value-added processes as defined by rules adopted by the board.  The corporation shall allow agricultural-based commercial venture operations that may sell to the general public; provided that the lots shall be leased and operated by an agricultural park lessee in good standing with the corporation.

     §163D-E  Park development.  Except as herein provided, the corporation may develop, on behalf of the State or in partnership with a federal agency, a county, or a private party, agricultural parks which, at the option of the board, shall be exempt from all statutes, ordinances, charter provisions, and rules of any governmental agency relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction of buildings thereon; provided that:

     (1)  The board finds the agricultural park is consistent with the purpose and intent of this part, and meets minimum requirements of health and safety;

     (2)  The development of the proposed agricultural park does not contravene any safety standards or tariffs approved by the public utilities commission for public utilities;

     (3)  The legislative body of the county in which the agricultural park is to be situated shall have approved the agricultural park.

         (A)  The legislative body shall approve or disapprove the agricultural park within forty-five days after the corporation has submitted the preliminary plans and specifications for the agricultural park to the legislative body.  If after the forty-fifth day an agricultural park is not disapproved, it shall be deemed approved by the legislative body.

         (B)  No action shall be prosecuted or maintained against any county, its officials, or employees, on account of actions taken by them in reviewing, approving, or disapproving the plans and specifications.

         (C)  The final plans and specifications for the agricultural park shall be deemed approved by the legislative body if the final plans and specifications do not substantially deviate from the preliminary plans and specifications.  The final plans and specifications for the project shall constitute the planning, zoning, building, construction, and subdivision standards for that agricultural park.  For purposes of sections 501-85 and 502-17, the chairperson of the board or the responsible county official may certify maps and plans of lands connected with the agricultural park as having complied with applicable laws and ordinances relating to consolidation and subdivision of lands, and the maps and plans shall be accepted for registration or recordation by the land court and registrar; and

     (4)  The State shall assume the responsibility of maintaining all roads within the agricultural park if the roads are developed exempt from applicable county ordinances, charter provisions, and rules regarding roads.

     §163D-F  Joint ventures.  Any agricultural park developed by the corporation in partnership with a federal agency, a county, or a private party shall be subject to a partnership agreement approved by the board, which agreement shall provide, at a minimum:

     (1)  A determination by the board that it is in the public interest to enter into the partnership agreement;

     (2)  Long-term assurance that the land will be utilized for agricultural or aquacultural purposes;

     (3)  Board approval of the agricultural park development plans and specifications;

     (4)  Selection and management of lessees in a manner approved by the board; and

     (5)  Conditions to ensure a public benefit from any state funds expended for the project.

     §163D-G  Disposition.  (a)  Any provision of this part to the contrary notwithstanding, the board, by negotiation, drawing of lot, or public auction, may directly dispose of public lands and related facilities set aside and designated for use as agricultural parks, and any other lands and facilities under the jurisdiction of the corporation pursuant to section 163D-C and notwithstanding chapter 171.  Except as provided by subsection (c), dispositions may be by lease and shall be subject to the requirements set forth in rules adopted by the board in conformity with section 163D-K, and subject also to the following limitations:

     (1)  The property shall be disposed of for agricultural or aquacultural purposes only;

     (2)  The lessee shall derive the major portion of the lessee's total annual income from the lessee's activities on the premises; provided that this restriction shall not apply if failure to meet the restriction results from mental or physical disability or the loss of a spouse, or if the premises are fully utilized in the production of crops or products for which the disposition was granted;

     (3)  The lessee shall comply with all federal and state laws regarding environmental quality control;

     (4)  The board shall:

          (A)  Determine the specific uses for which the disposition is intended;

          (B)  Parcel the land into minimum size economic units sufficient for the intended uses;

          (C)  Make, or require the lessee to make improvements as are required to achieve the intended uses;

          (D)  Set the upset price or lease rent based upon an appraised evaluation of the property value adjustable as provided in rules adopted in accordance with chapter 91 to the specified use of the lot;

          (E)  Set the term of the lease, which shall be not less than fifteen years nor more than fifty-five years, including any extension granted for mortgage lending or guarantee purposes; and

          (F)  Establish other terms and conditions as it may deem necessary, including but not limited to restrictions against alienation and provisions for withdrawal by the board;

     (5)  No lease shall be made to any person who is in arrears in the payment of taxes, rents, or other obligations owing the State or any county; and

     (6)  Any transferee, assignee, or sublessee of an agricultural park lease shall first qualify as an applicant under this part.  For the purpose of this paragraph, any transfer, assignment, sale, or other disposition of any interest, excluding a security interest, of any legal entity that holds an agricultural park lease shall be treated as a transfer of the agricultural park lease and shall be subject to the approval of the board upon reasonable terms and conditions, not inconsistent with this part or rules of the board, which the board may deem necessary.  No transfer shall be approved by the board if the disposition of the stock, or assets or other interest of the legal entity would result in the failure of the entity to qualify for an agricultural park lease.

     (b)  The violation of any provision contained in this section shall be sufficient cause for the board, after due notice of breach or default as provided in rules adopted by the board in conformance with section 163D-K, to cancel the lease and take possession of the land.

     (c)  The board may issue easements, permits, and rights of entry covering agricultural park lands for uses consistent with the purposes for which the lands were set aside or are otherwise subject to the authority of the corporation pursuant to section 163D-C.

     §163D-H  Applicants.  Any person, including a revocable living trust, partnership, corporation, limited liability company, association, or an agricultural cooperative organized under chapter 421 at least seventy-five per cent of the trustees, partners, officers and stockholders, or members of which qualify individually, may apply for an agricultural park lease if the person, trustees, partners, officers and stockholders, or members are eligible and qualified according to criteria set forth in rules adopted by the board in conformance with section 163D-K.

     §163D-I  Preference right.  Any person who is otherwise qualified to take an agricultural park lot, who is a veteran with an honorable discharge, or who qualifies as a displaced farmer, or who operates a farm located in a zoning district where such use is a nonconforming use, or who qualifies as a new farmer, shall be given preference in obtaining an agricultural park lot.

     §163D-J  Rights of holders of security interests.  (a)  For the purpose of this section:

     "Institutional lender" means a federal, state, or private lending institution licensed to do business in the State in making loans to qualified applicants under section 163D-H on the basis of a lease for security, in whole or in part, together with any other entity who acquires all or substantially all of an institutional lender's loan portfolio.

     "Making a loan" means lending of new money after June 30, 2011, or the renewal or extension of indebtedness owing by a qualified applicant to an institutional lender.

     "Security interest" means any interest created or perfected by a mortgage, assignment by way of mortgage, or by a financing statement and encumbering a lease, land demised by the lease, or personal property located at, affixed or to be affixed to, or growing or to be grown upon the demised land.

     (b)  Board action shall be required when an institutional lender acquires the lessee's interest through a foreclosure sale, judicial or nonjudicial, or by way of assignment in lieu of foreclosure, or when the institutional lender sells or causes the sale of the lessee's interest in a lease by way of a foreclosure sale, judicial or nonjudicial.  The institutional lender shall convey a copy of the sale or assignment as recorded in the bureau of conveyances.

     (c)  Notwithstanding any provisions of this part or any law to the contrary, if any lease is subject to a security interest held by an institutional lender, and provided the institutional lender has given to the board a copy of the encumbrance as recorded in the bureau of conveyances:

     (1)  If the lease is canceled for violation of any non-monetary lease term or condition, or if the lease is deemed terminated or rejected under bankruptcy laws, then in either event, the institutional lender shall be entitled to issuance of a new lease in its name for a term equal to the term of the lease remaining immediately prior to the cancellation, termination, or rejection, with all terms and conditions being the same as in the canceled, terminated, or rejected lease, except only for liens, claims, and encumbrances, if any, which were superior to the institutional lender prior to the cancellation, termination, or rejection.  If a lease is rejected or deemed rejected under bankruptcy law, the lease shall be deemed to be canceled and terminated for all purposes under state law;

     (2)  If the lessee's interest under a lease is transferred to an institutional lender, including by reason of the provisions of paragraph (1) by reason of acquisition of lessee's interest pursuant to a foreclosure sale, judicial or nonjudicial, and by reason of an assignment in lieu of foreclosure, then:

         (A)  The institutional lender shall be liable for the obligations of the lessee under the lease for the period of time during which the institutional lender is the holder of lessee's interest but shall not be liable for any obligations of the lessee arising after the institutional lender has assigned the lease;

         (B)  Subsection 163D-G(a)(1) and (2) shall not apply to the lease or the demised land during the time the institutional lender holds the lease; provided, however, that:

              (i)  For non-monetary lease violations, the institutional lender shall first remedy the lease terms that caused the cancellation, termination, or rejection to the satisfaction of the board; and

             (ii)  The new lease issued to the institutional lender shall have a sunset date (one hundred twenty days from the effective date of issuance), when the institutional lender shall either sell or assign the lease, after which date the provisions of subsection 163D-G(a) shall become applicable to the new lease;

     (3)  As long as there is a delinquent loan balance secured by a security interest, the lease may not be canceled or terminated, except for cancellation by reason of default of the lessee, and no increase over and above the fair market rent, based upon the actual use of the land demised and subject to the use restrictions imposed by the lease and applicable laws, may be imposed or become payable, and no lands may be withdrawn from the lease, except by eminent domain proceedings beyond the control of the board, except with prior written consent by the institutional lender and that consent shall not be unreasonably withheld; and

     (4)  If the lease contains any provision requiring the payment of a premium to the lessor on assignment of the lease, any premium shall be assessed only after all amounts owing by any debt secured by a security interest held by an institutional lender shall have been paid in full.

     (d)  Ownership of both the lease and the security interest by an institutional lender shall not effect or cause a merger thereof, and both interests shall remain distinct and in full force and effect unless the institutional lender elects in writing to merge said estates with the consent of the board.

     (e)  The board may include in any consent form or document such provisions not inconsistent with the intent of this section as may be required to make a lease mortgageable or more acceptable for mortgageability by an institutional lender.

     (f)  The rights of a purchaser, assignee, or transferee of an institutional lender's security interest, including a junior lien holder, shall be exercisable by the purchaser, assignee, or transferee as successor in interest to the institutional lender; provided that:

     (1)  The purchase, assignment, or transfer shall conform with subsection (c)(4); and

     (2)  The purchase, assignment, or transfer of such rights shall be reserved for and exercisable only by an institutional lender.

Other purchasers may not be precluded from acquiring the institutional lender's security interest but shall not have exercisable rights as successor in interest to the original institutional lender.

     §163D-K  Rules.  The board shall adopt rules in accordance with chapter 91 in order to effectuate the purposes of this chapter.  The rules shall provide, without limitation, for:

     (1)  Definitions;

     (2)  Planning generally and for intensive agricultural uses;

     (3)  General eligibility requirements;

     (4)  Qualifications of applicants;

     (5)  Preference rights;

     (6)  Disposition of leases;

     (7)  Lease provisions;

     (8)  Lease restrictions generally and for intensive agricultural uses; and

     (9)  Notice of breach or default.

Rules adopted by the board for the purposes of this part shall be consistent with sections 171-11 and 171-20.

     §163D-L  Agricultural park special fund.  (a)  There is created a special fund to be designated as the agricultural park special fund.  The proceeds in the fund shall be used for the following purposes:

     (1)  Payment of agricultural park lease rents of privately owned lands under lease to the State pursuant to sections 171-112 and 163D-C;

     (2)  Establishing, operating, maintaining, and improving infrastructure improvements in agricultural parks designated by the corporation pursuant to section 163D-C; and

     (3)  Any other purposes deemed necessary by the corporation for the purpose of maintaining and operating those agricultural parks and related facilities designated by the department pursuant to section 163D-C.

     For the purpose of paragraph (2), infrastructure improvements may include, but shall not be limited to:  irrigation water system projects, wind power or hydro power and pumping systems, waste disposal systems, domestic water systems, roads, street lights, land and roads drainage, and bridges.

     (b)  The following shall be deposited into the agricultural park special fund:

     (1)  Moneys appropriated for the purpose of the fund;

     (2)  Any other provision of the law to the contrary notwithstanding, all moneys received or collected from an agricultural park project designated pursuant to section 163D-C, including residential and agricultural lot lease rents;

     (3)  All money collected or received by the corporation for the use and maintenance of domestic and irrigation water systems within an agricultural park and other systems enumerated in subsection (a).

All interest earned or accrued on moneys deposited in the fund shall become a part of the fund.

     §163D-M  Lease negotiation.  (a)  The corporation may negotiate and enter into leases with any person who:

     (1)  As of July 1, 1996, holds a revocable permit for agricultural purposes; or

     (2)  Has formerly held an agricultural lease that expired within the last ten years preceding July 1, 1996, and has continued to occupy the state land; and

     (3)  Does not own agriculturally-zoned land of twenty-five acres or more in the State, individually or jointly with a spouse, or whose spouse does not own twenty-five acres or more of agriculturally-zoned land in the State.

     (b)  The land eligible for lease negotiations under this section are limited to those lands:

     (1)  Zoned and used for agricultural purposes;

     (2)  Set aside by governor's executive order to the department of agriculture for agricultural uses only; and

     (3)  Not needed by any state or county agency for any other public purpose.

     (c)  In negotiating and executing a lease as authorized, the board shall:

     (1)  Require the appraisal of the parcel to determine the fair market value;

     (2)  Require the payment of annual lease rent based on the fair market value established by appraisal;

     (3)  Require the payment of a premium, computed at twenty-five per cent of the annual lease rent, with the premium to be added to the annual lease rent for each year of the lease equal to the number of years the lessee has occupied the land, except that the premium period shall not exceed four years; and

     (4)  Recover from the lessee the costs of expenditures required by the corporation to convert the parcel into leasehold.

     The corporation shall notify in writing the permittees of lands eligible for lease negotiations under this section and shall inform the permittees of the terms, conditions, and restrictions provided by this section.  Any permittee may apply for a lease; provided that the application shall be submitted to the corporation in writing within thirty days from the date of receipt of notification; provided further that the corporation may require documentary proof from any applicant to determine that the applicant meets eligibility and qualification requirements for a lease as specified by this section."

     SECTION 2.  Section 141-10, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  Subject to legislative appropriation, moneys in the special fund may be expended for the following purposes:

     (1)  The awarding of grants to farmers for agricultural production or processing activity;

     (2)  The acquisition of real property for agricultural production or processing activity;

     (3)  The improvement of real property, irrigation systems, and transportation networks necessary to promote agricultural production or processing activity;

     (4)  The purchase of equipment necessary for agricultural production or processing activity;

     (5)  The conduct of research on and testing of agricultural products and markets;

     (6)  The funding of agricultural inspector positions within the department of agriculture; and

    [(7)  The promotion and marketing of agricultural products grown or raised in the State; and

     (8)] (7)  Any other activity intended to increase agricultural production or processing that may lead to reduced importation of food, fodder, or feed from outside the State."

     SECTION 3.  Section 163D-4, Hawaii Revised Statutes, is amended to read as follows:

     "§163D-4  Powers; generally.  (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 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 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 ahupua`a 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[;], including the carrying out of the actual promotion and marketing of agricultural products grown or raised in the State that was previously carried out under chapter 141;

    (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)  Provide equity financing to farmers to improve farming activities;

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

   [(14)] (15)  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)] (16)  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)] (17)  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)] (18)  Accept gifts or grants in any form from any public agency or any other source; and

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

     (b)  The corporation shall develop, promote, assist, and market export crops and other crops for local markets[.], including the promotion and marketing of agricultural products grown or raised in the State that was previously carried out under chapter 141."

     SECTION 4.  Section 163D-5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The corporation shall prepare the Hawaii agribusiness plan which shall define and establish goals, objectives, policies, and priority guidelines for its agribusiness development strategy.  The plan shall include but not be limited to:

     (1)  An inventory of agricultural lands with suitable adequate water resources that are or will become available due to the downsizing of the sugar and pineapple industries that can be used to meet present and future agricultural production needs;

     (2)  An inventory of agricultural infrastructure that will be abandoned by sugar and pineapple industries such as irrigation systems, drainage systems, processing facilities, and other accessory facilities;

     (3)  An analysis of imported agricultural products and the potential for increasing local production to replace imported products in a manner that complements existing local producers and increases Hawaii's agricultural self-sufficiency;

     (4)  Alternatives in the establishment of sound financial programs to promote the development of diversified agriculture;

     (5)  Feasible strategies for the promotion, marketing, and distribution of Hawaii agricultural products in local, national, and international markets[;], including the promotion and marketing of agricultural products grown or raised in the State that was previously carried out under chapter 141;

     (6)  Programs to promote and facilitate the absorbing of displaced agricultural workers into alternative agricultural enterprises;

     (7)  Strategies to [insure] ensure the provision of adequate air and surface transportation services and supporting facilities to support the agricultural industry in meeting local, national, and international market needs;

     (8)  Proposals to improve the gathering of data and the timely presentation of information on market demands and trends that can be used to plan future harvests and production; and

     (9)  Strategies for federal and state legislative actions that will promote the development and enhancement of Hawaii's agricultural industries."

     SECTION 5.  Chapter 166, Hawaii Revised Statutes, is repealed.

     SECTION 6.  All rights, powers, functions, and duties relating to the agricultural parks program of the department of agriculture are transferred to the agribusiness development corporation.

     All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.

     No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act, and such officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

     An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this Act shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that such officer or employee possesses the minimum qualifications for the position to which transferred or appointed.

     In the event that an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor.

     SECTION 7.  All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of agriculture relating to the functions transferred to the agribusiness development corporation shall be transferred with the functions to which they relate.

     SECTION 8.  All rules, policies, procedures, guidelines, and other material adopted or developed by the department of agriculture with respect to the agricultural parks program shall remain in full force and effect until amended or repealed by the agribusiness development corporation pursuant to chapter 91, Hawaii Revised Statutes.  In the interim, every reference to the department of agriculture in those rules, policies, procedures, guidelines, and other material as they relate to the agricultural parks program is amended to refer to the agribusiness development corporation or the executive director of the agribusiness development corporation, as appropriate.

     SECTION 9.  It is the intent of this Act not to jeopardize the receipt of any federal aid nor to impair the obligation of the State or any agency thereof to the holders of any bond issued by the State or by any such agency, and to the extent, and only to the extent, necessary to effectuate this intent, the governor may modify the strict provisions of this Act, but shall promptly report any such modification with reasons therefor to the legislature at its next session thereafter for review by the legislature.

     SECTION 10.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 11.  This Act shall take effect upon its approval, except that:

     (1)  Sections 1 and 5 shall take effect on July 1, 2011; and

     (2)  The amendments made to section 141-10(c), Hawaii Revised Statutes, by section 2 of this Act shall not be repealed when that section is repealed on June 30, 2015, pursuant to Act 73, Session Laws of Hawaii 2010.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Agribusiness Development Corporation

 

Description:

Transfers the agricultural parks program from the DOA to the Agribusiness Development Corporation (ADC).  Transfers promotion and marketing of agricultural products from DOA to ADC.  Authorizes ADC to provide equity financing to farmers to improve farming activities.

 

 

 

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