Bill Text: HI SB469 | 2010 | Regular Session | Introduced
Bill Title: Agriculture; Transportation
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [SB469 Detail]
Download: Hawaii-2010-SB469-Introduced.html
Report Title:
Agriculture; Transportation
Description:
Establishes an agricultural products transportation program to provide grants to qualified agricultural producers to alleviate ocean and air intrastate transportation costs.
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THE SENATE |
S.B. NO. |
469 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to agriculture.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. A recent study prepared for the agribusiness development corporation, The Demand for Interisland Shipping and the Impact of Shipping Costs on Hawaii Agricultural Production, March 27, 2008, noted that while sixty-eight per cent of Hawaii residents and visitors reside on Oahu, over seventy-two per cent of all crop sales are generated by farmers and ranchers located on the neighbor islands. Accordingly, transportation of agricultural products between the islands is an important part of the agricultural industry. The study further found that seventy-three per cent of total interisland ocean freight of fresh agricultural products was shipped on skips or pallets or in less than container size loads. However, due to space and facilities constraints, primarily at Kahului harbor on Maui and Hilo harbor on the big island, Young Brothers, the only ocean transporter that is subject to a public utilities commission tariff structure on interisland transportation, recently applied to discontinue less than container load shipping from Kahului harbor.
The study stated that:
A survey was conducted of various farmers, manufacturers, and users of (Young Brothers), the only interisland surface carrier in the state, to gather objective data that can be used in decision-making. The majority of (less than container load) users have expressed their concern of not being able to afford shipping their products if rates continue to escalate. Farmers also expressed concern that they will be negatively impacted and forced out of business if (less than container load service) were to be discontinued. Food manufacturers surveyed viewed (less than container load) as the most economical method of shipping and felt that they would also be negatively impacted if (less than container load) services were discontinued.
While most of the agricultural products transported intrastate utilized surface transportation, a substantial amount, just under twenty per cent, utilized air freight to ensure fresh produce on arrival. However, in either transportation mode, the transportation costs to agricultural producers were a critical element to the future of their businesses.
The purpose of this Act is to establish an agricultural products transportation program to ease the costs of intrastate transportation to agricultural producers.
SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
"Chapter
AGRICULTURAL PRODUCTS TRANSPORTATION PROGRAM
§ -1 Definitions. As used in this chapter:
"Agricultural activities" shall have same meaning as in section 166E-2.
"Agricultural producer" shall have the same meaning as in section 155-5.6
"Agricultural products" shall have the same meaning as in section 421-1.
"Aquacultural activities" shall have the same meaning as in section 166E-2.
"Department" means the department of agriculture.
"Qualified transportation costs" means the cost of transporting agricultural products within the State by ocean or air transportation, but not including ground transportation.
§ -2 Transportation program established. There is established the agricultural transportation program to assist agricultural producers by alleviating a portion of their qualified transportation costs in the way of grants to qualified agricultural producers. The department is directed to accept applications, on forms prescribed and prepared by the department, from agricultural producers to qualify for receipt of the grants, provided that:
(1) The applicant is an agricultural producer;
(2) The applicant shall have applied for or received all applicable licenses or permits required to engage in the agricultural activities in which the agricultural producer is engaged;
(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 this transportation program;
(4) The grant shall not exceed per cent of the applicant's total qualified transportation costs or exceed $ in any year; and
(5) The department may request that an applicant provide any information, including but not limited to general excise and income tax returns, invoices, and bills of lading, it deems necessary to verify the qualified transportation costs incurred by any applicant in any year.
§ -3 Financial statements. (a) The applicant shall file with the department, on forms prescribed and prepared by the department, a quarterly financial statement of qualified transportation costs, along with any required supporting documentation. An annual financial statement shall be filed with the department, within ninety days following the close of the applicant's fiscal year after the effective date of this Act, 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 statements.
(b) Funds shall be disbursed to the applicant within thirty days of receipt and approval of a complete quarterly financial statement.
§ -4 Exemption from chapter 42F. Chapter 42F shall not apply to the grants made pursuant to this chapter, but all grants shall be made only in accordance with standards and conditions specified in sections -2 and -3."
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 2009-2010 and the same sum or so much thereof as may be necessary for fiscal year 2010-2011 for the agricultural products transportation program established by this Act.
The sums appropriated shall be expended by the department of agriculture for the purposes of this Act.
SECTION 4. This Act shall take effect on January 1, 2010, except that section 3 shall take effect on July 1, 2009.
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INTRODUCED BY: |
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