Report Title:

Use of Biological Resources; Benefit Sharing

Description:

Requires DLNR to implement permitting system for collection of biological resources from Hawaii and provides for use of revenues. Appropriates $250,000.

HOUSE OF REPRESENTATIVES

H.B. NO.

3069

TWENTY-THIRD LEGISLATURE, 2006

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to use of biological resources collected in hawaii.

 

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

SECTION 1. The legislature finds that article XII, section 4, of the Hawaii state constitution provides that lands granted to the State by section 5(b) of the Admission Act and pursuant to article XVI, section 7, of the state constitution, excluding "available lands" as defined by section 203 of the Hawaiian Homes Commission Act, 1920, as amended, shall be held by the State as a public trust for native Hawaiians and the general public who are co-beneficiaries of the public trust. Hawaii's unique biological diversity and biological resources are assets of a public trust established in article XI, section 1, of the Hawaii state constitution and they are culturally, spiritually, medicinally, and otherwise significant to native Hawaiians and the general public. Moreover, native Hawaiians are traditional, indigenous knowledge holders with rights, including those recognized in article XII, section 7, of the Hawaii state constitution and sections 1-1 and 7-1, Hawaii Revised Statutes.

The legislature also finds that the biological diversity and biological resources on public lands are of great potential economic benefit in the areas of medicine, scientific research, biotechnology, and commercial development for native Hawaiians and the general public. The potential economic benefit of these biological resources may create market-driven incentives and generate financial resources for the conservation and sustainable development of Hawaii's biological resources.

Under the department of land and natural resources' current permit process, the State of Hawaii has no opportunity to participate or benefit from discoveries that may be made using materials lawfully collected from public lands and waters. The residents of Hawaii, as well as the research community and growing biotechnology industry, will benefit from the development and implementation of policy and legislation codifying a statutory framework for utilization of Hawaii' biological resources for research and commercial development. There is a need to develop policy and legislation that will allow the State and native Hawaiians to participate in the conservation and sustainable development of Hawaii's biological resources and derive benefits from research and commercialization of those resources. By ensuring best practices and bio-safety protocols, an environment can be created that will maximize the educational, research, and career opportunities for the residents of Hawaii.

The purpose of this Act is to provide the statutory framework within which the State can actively participate in the sustainable development and use of biological resources found in Hawaii.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

USE OF BIOLOGICAL RESOURCES

§   -1 Definitions. As used in this chapter, unless the context clearly otherwise requires:

"Benefit sharing" means all forms of compensation for the utilization of genetic resources, whether monetary or non-monetary, and includes, in particular, the participation in scientific research and development on genetic resources and the making available of the results of such scientific research and development.

"Biodiversity" means all living organisms in the State.

"Biological resources" means all biodiversity in the State including their genetic material or progeny, and any derivatives of living organisms.

"Bioprospecting" means the exploration for commercially valuable biological resources.

"Biotechnology" means any technological application that uses biological systems or living organisms.

"Department" means the department of land and natural resources.

"License" means a right to make, use, or sell products containing biological resources.

"Licensing revenue" means any form of consideration paid or transferred to the holder of a license in exchange for granting of a license.

"Microbial" means microscopic life forms including but not limited to bacteria.

"Permittee" means a party lawfully granted a permit from the department of land and natural resources.

"Prior informed consent" means consent of the department, as appropriate, to access, sample, and develop biological resources.

"Public lands" means public lands as defined in section 171-2 and includes submerged lands and lands to which the University of Hawaii holds title, and ocean resources under state jurisdiction.

"Sustainable use" means the use of components of biodiversity in a way and at a rate that does not lead to the long-term decline of biodiversity, thereby maintaining its potential to meet the needs and aspirations of present and future generations.

§   -2 Use of biological resources; permit system. The department shall adopt rules in accordance with chapter 91 to create a permitting system for the collection and use of any biological resource derived from lands and waters of the State. The permit system shall provide for:

(1) A statement of the intended use of the biological resource;

(2) A statement of prior informed consent issued by the department on behalf of the State upon approval of the permit;

(3) A statement that the biological resources collected shall remain the property of the State and the biological material may not be transferred to a third party without the prior written approval of the department;

(4) A restriction allowing the permitee to perform only those activities approved by the permit;

(5) A requirement that any discovery made directly through the use of the collected biological resources be reported to the department within thirty days of the discovery; and

(6) A requirement that commercialization of a product stemming from the biological resource collected shall require a license from the State.

§   -3 Database. (a) The department shall implement a worldwide web-enabled, electronic database for the processing and tracking of collection permits and biological resources collected. At a minimum, this database shall provide documentation on active permits, including a description of the materials collected under a permit, a description of the location where the material was collected, the name of the person or organization granted the permit, and the location of the collected material.

(b) Discoveries disclosed to the department by a permitee shall be recorded in the database. The department shall evaluate these discoveries and contract with appropriate technological and legal expertise to provide licenses for the use of the State's biological resources. The department may enter into agreements to grant licenses.

§   -4 Revenues; distribution; ceded lands. Revenues from the licensing of any biological resources collected under permit in the State shall first be distributed to the department for the cost of licensing and permitting expenses. Using the United Nations Convention on Biodiversity as a model, the department shall apply licensing revenue to efforts affecting the conservation and sustainable use of the natural resources of Hawaii. In addition, a portion of the revenues shall be earmarked specifically for use in the geographic areas from which the licensed biological resources were collected.

(b) Notwithstanding the distribution of revenue in subsection (a), if the source of a licensed biological resource is collected from ceded lands, any revenue collected after reimbursement of licensing expenses to the department shall be placed in a special account, the purpose of which shall be to hold the monetary benefits derived directly from ceded lands until such time that the distribution of that revenue is determined by the legislature.

§   -5 Native Hawaiian rights. Nothing in this chapter shall be interpreted to prevent native Hawaiians from exercising the rights conferred in article XII, section 7, of the Hawaii State constitution and sections 1-1 and 7-1."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $250,000, or so much thereof as may be necessary for fiscal year 2006-2007, for the department of land and natural resources to implement the database pursuant to chapter    , Hawaii Revised Statutes, including funding one permanent, full-time position to oversee the development and implementation of the database and to train other users.

The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

SECTION 4. This Act shall take effect upon its approval, except that section 3 shall take effect on July 1, 2006.

INTRODUCED BY:

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