HOUSE OF REPRESENTATIVES

H.B. NO.

2409

TWENTY-FIFTH LEGISLATURE, 2010

H.D. 2

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO AQUACULTURE.

 

 

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

 


     SECTION 1.  The legislature finds that direct leasing of public lands has been a cornerstone for building a successful commercial aquaculture industry in the state.  Currently, aquaculture leases have a statutory limit of thirty-five years, with no option for renewal.  Project financing and private-sector investment requires sufficient lease terms for ventures to reach economic viability.  Federal loan guarantees for aquaculture enterprises are available for loan terms up to forty years, but require applicants to have a lease at least five years longer than the term, a minimum of forty-five years.  State non-agricultural park leases, however, have a maximum term of sixty-five years for experienced farmers and also include the option for renewal.

     The purpose of this Act is to encourage commercial aquaculture production in the state by providing favorable terms for the leasing of public lands.

     SECTION 2.  Section 171-59, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Disposition of public lands for airline, aircraft, airport-related, agricultural processing, cattle feed production, aquaculture, marine, maritime, and maritime-related operations may be negotiated without regard to the limitations set forth in subsection (a) and section 171-16(c); provided that:

     (1)  The disposition encourages competition within the aeronautical, airport-related, agricultural, aquaculture, maritime, and maritime-related operations;

     (2)  The disposition shall not exceed a maximum term of thirty-five years, except [in]:

         (A)  In the case of maritime and maritime-related operations, which may provide for a maximum term of seventy years; and

         (B)  In the case of aquaculture operations, which may provide for a maximum term of forty-five years.  Aquaculture operations in good standing may be given the right of first refusal and may seek to renew a lease issued under this paragraph.  Aquaculture operations, during the lease term, may engage in supportive activities that are related to aquaculture;

          and

     (3)  The method of disposition of public lands for cattle feed production as set forth in this subsection shall not apply after December 31, 1988.

For the purposes of this subsection:

     "Agricultural processing" means the processing of agricultural products, including dairying, grown, raised, or produced in Hawaii.

     "Airport-related" means a purpose or activity that requires air transportation to achieve that purpose or activity.

     "Aquaculture" means the propagation, cultivation, or farming of aquatic plants and animals in controlled or selected environments for research, commercial, or stocking purposes, including aquaponics or any growing of plants with aquaculture effluents.

     "Maritime-related" means a purpose or activity that requires and is directly related to the loading, off-loading, storage, or distribution of goods and services of the maritime industry."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2020.



 

 

 

Report Title:

Commercial Aquaculture Leases

 

Description:

Increases lease terms for aquaculture ventures from 35 to 45 years.  Permits aquaculture lessees in good standing the right of first refusal.  Allows for supportive aquaculture activities.  Takes effect July 1, 2020.  (HB2409 HD2)

 

 

 

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