Report Title:

Appropriation for Agricultural Research and Business Development

Description:

Appropriates $1,000,000 for continued agricultural research and development and development of the agribusiness incubator initiative.

THE SENATE

S.B. NO.

2184

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to AGRICULTURE.

 

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

SECTION 1. The legislature finds that Hawaii must diversify its economic base beyond its reliance on tourism and revenues provided by the federal government. A revived agriculture industry holds the promise of not only diversifying Hawaii's economy, but increasing Hawaii's food sustainability, preserving the green space and lifestyle that Hawaii's citizens and visitors value, and meeting its constitutional mandate to "...conserve and protect agricultural lands, promote diversified agriculture, increase agricultural self-sufficiency and assure the availability of agriculturally suitable lands."

The legislature further finds that agriculture and value-added products in Hawaii contribute $2.7 billion to the State's economy and employs 43,260 people. During the 1997 to 2000 period, agriculture's contribution to the gross state product grew at a rate of 2.5 per cent versus 1.7 per cent for the rest of the State's economic sectors.

The legislature further finds that the prime agricultural lands released from sugarcane and pineapple production present a rare window of opportunity to further agricultural development. Currently, about 100,000 acres is laying fallow awaiting economically viable enterprises to make use of the land. If all of this land could be put to productive use in successful agricultural ventures, an additional $1.7 to $4.4 million could be added to the State's economy.

The legislature further finds that the University of Hawaii College of Tropical Agriculture and Human Resources (UH-CTAHR) is engaged in several areas of research and outreach that already have contributed materially to the resurgence of agriculture in the State. Among UH-CTAHR's contributions to the State's agricultural industry are:

(1) Identifying and developing high-value food and fiber products so that Hawaii can stay competitive in a global market;

(2) Research that advances agricultural biotechnology, an industry that has potential to bring billions of dollars to the State's economy; and

(3) Creating and encouraging adoption of environmentally sound agricultural practices such as "bioremediation" which allows for cleanup of sites contaminated by heavy metals.

The legislature further finds that more work needs to be done in all of these areas to develop high-value products such as:

(1) New and improved varieties that are resistant to disease and environmental stress, tolerant to pesticides, and which produce high-value chemicals, fragrances, vaccines, or specific nutrients;

(2) Effective and environmentally sound pest, disease, and nutrient management systems; and

(3) Technologies that bioremediate environmental problems.

The legislature further finds that it must encourage the development of economically viable enterprises on the prime agricultural lands currently left fallow. The National Business Incubator Association reports that eighty-seven per cent of incubator graduates remain in business, while only twenty-five per cent of small businesses remain after five years when they do not have the benefit of an incubator environment. There is need for an agribusiness incubator initiative to provide: start-up counseling, business plan development, management guidance, marketing assistance, legal and financial referrals, mentors, training workshops, and other assistance critical to the establishment of successful agribusiness enterprises.

The purpose of this Act is to appropriate funds to the University of Hawaii to enable UH-CTAHR to conduct crucial agricultural research and outreach activities.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $1,000,000, or so much thereof as may be necessary for fiscal year 2002-2003, as follows:

(1) $500,000 for the continued research and development of high-value agricultural products, biotechnology research and development, and the creation and adoption of agricultural management practices that protect Hawaii's environment; and

(2) $500,000 for the development of the agribusiness incubator initiative.

SECTION 3. The sum appropriated shall be expended by the University of Hawaii for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 2002.

INTRODUCED BY:

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