REPORT TITLE:
Agricultural Park; Hamakua


DESCRIPTION:
Directs the agribusiness development corporation to provide for
the planning, design, and construction of an agricultural
subdivision in the Hamakua district of the island of Hawaii.
Appropriates $1 for that purpose, to be expended by the
corporation.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.949        
TWENTIETH LEGISLATURE, 1999                                
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:

 1      SECTION 1.  The legislature finds that hundreds of acres of
 
 2 former sugarcane land along the Hamakua coast, on the island of
 
 3 Hawaii have laid idle since the closure of the last plantations.
 
 4 Meanwhile, hundreds of displaced sugar workers search for jobs
 
 5 and opportunities to enter into agricultural endeavors.  Others,
 
 6 who are already farming or ranching successfully elsewhere, are
 
 7 interested in leasing Hamakua lands to expand their operations.
 
 8      With a master lease from the department of agriculture, the
 
 9 Hamakua, North Hilo agricultural cooperative has subleased all of
 
10 its one thousand four hundred acres to over one hundred seventy-
 
11 eight farmers and ranchers.  Additionally, the department of land
 
12 and natural resources has begun to issue a number of leases.
 
13 Yet, there remains a strong demand for additional parcels,
 
14 particularly smaller ones of ten acres or less with good soil,
 
15 gentle slopes, adequate road access, and irrigation water for the
 
16 production of vegetable and root crops.
 
17      The coordinating entity, the agribusiness development
 
18 corporation, is empowered statutorily to facilitate and promote
 
19 agriculture in the State through the reuse of former plantation
 

 
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                                     H.B. NO.949        
                                                        
                                                        


 1 lands, water delivery systems, roadways, and other necessary
 
 2 infrastructure.  Therefore, the purpose of this Act is to direct
 
 3 the agribusiness development corporation to allot the necessary
 
 4 financial and human resources necessary to plan, design, and
 
 5 construct an agricultural subdivision in the Hamakua district in
 
 6 the island of Hawaii.
 
 7      SECTION 2.  The agribusiness development corporation shall
 
 8 allot the necessary financial and human resources necessary to
 
 9 plan, design, and construct an agricultural subdivision in the
 
10 Hamakua district of the island of Hawaii, and shall take all
 
11 necessary actions for this purpose, including the following:
 
12      (1)  Seek a fifty-five year lease from the landowners of
 
13           affected lands in the Hamakua district and from the
 
14           State, in order to allow qualified tenants to hold
 
15           long-term subleases under the agribusiness development
 
16           corporation;
 
17      (2)  Establish a partnership with financial institutions to
 
18           be responsible for all financial transactions on behalf
 
19           of the agribusiness development corporation, including
 
20           collecting from tenants and making payments for:
 
21           (A)  Maintenance fees;
 
22           (B)  Lease rents;
 
23           (C)  Assessments for common infrastructure
 

 
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                                     H.B. NO.949        
                                                        
                                                        


 1                improvements;
 
 2           (D)  Master lease rent;
 
 3           (E)  Property taxes;
 
 4           (F)  Insurance; and
 
 5           (G)  Agribusiness development corporation management
 
 6                fees;
 
 7      (3)  Provide for infrastructure improvements sufficient to
 
 8           support optimal agricultural production;
 
 9      (4)  Serve as master lessor and marketing coordinator of the
 
10           project; and
 
11      (5)  Assist tenants in seeking applications for agricultural
 
12           loans from private lenders and applicable federal loan
 
13           guarantee programs.
 
14      The legislature finds that success in this partnership will
 
15 encourage private landowners to make available agricultural lands
 
16 for farming, increase banks' agricultural loan activity, offer
 
17 new farmers an opportunity to start, and increase the
 
18 contribution of agriculture to the diversification of Hawaii's
 
19 economy.
 
20      SECTION 3.  There is appropriated out of the general
 
21 revenues of the State of Hawaii the sum of $1, or so much thereof
 
22 as may be necessary for fiscal year 1999-2000, for the planning,
 
23 design, and construction of an agricultural subdivision in the
 

 
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                                     H.B. NO.949        
                                                        
                                                        


 1 Hamakua district of the island of Hawaii.
 
 2      SECTION 4.  The sum appropriated shall be expended by the
 
 3 agribusiness development corporation for the purposes of this
 
 4 Act.
 
 5      SECTION 5.  This Act shall take effect on July 1, 1999.
 
 6 
 
 7                              INTRODUCED BY:______________________