Bill Text: HI HB2468 | 2014 | Regular Session | Amended

Hawaii House Bill 2468 (Prior Session Legislation)

Bill Title: Agricultural Quarantine Facility; Studies; Agricultural Foreign-trade Zone; HTDC; Agricultural Technology Park; Agritourism; Appropriation ($)

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Enrolled - Dead) 2014-04-24 - Conference Committee Meeting will reconvene on Friday 04-25-14 3:05PM in conference room 423. [HB2468 Detail]

Download: Hawaii-2014-HB2468-Amended.html

HOUSE OF REPRESENTATIVES	H.B. NO.	2468
TWENTY-SEVENTH LEGISLATURE, 2014		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO AGRICULTURAL FACILITIES.

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

PART I

SECTION 1. One of the missions of the department of business, economic development, and tourism is to promote industrial development and economic diversification by supporting existing and emerging industries, increasing exports of Hawaii products, and expanding Hawaii's participation in global trade and commerce. The department has prepared a statewide comprehensive economic development strategy. The strategy's report for the island of Hawaii found that, because of the island's strong orientation toward diversified agriculture, development of a central marketing facility for collection, consolidation, packing, and shipping of products continues to be a priority. As a means of achieving this priority, agricultural exporters have expressed interest in utilizing the relatively unused foreign trade zone no. 9 located in Hilo.

The legislature also recognizes that agriculture is and has been a major economic driver of the county of Hawaii. To preserve this economic driver and increase its value, the department of business, economic development, and tourism, in collaboration with the department of agriculture, should perform planning and economic impact and feasibility studies for one or more facilities on the island of Hawaii for quarantine inspection, quarantine treatment, deconsolidation, and consolidation of agricultural commodities for both import and export.

The purpose of this part is to authorize the department of business, economic development, and tourism, in collaboration with the department of agriculture, to:

(1) Perform planning and feasibility studies for one or more quarantine inspection, quarantine treatment, deconsolidation, and consolidation facilities on the island of Hawaii; and

(2) Perform a marketing and economic impact analysis for one or more of the facilities.

SECTION 2. (a) The department of business, economic development, and tourism, in collaboration with the department of agriculture, may:

(1) Perform planning and feasibility studies for the development of one or more facilities to be used for quarantine inspection, quarantine treatment, deconsolidation, and consolidation of imported and exported agricultural commodities on the island of Hawaii; and

(2) Perform a marketing and economic impact analysis for one or more of the facilities under paragraph (1).

(b) The studies and analysis shall include, in addition to foreign trade zone no. 9 in Hilo, the following alternative locations:

(1) The land parcel managed by the department of business, economic development, and tourism currently housing the foreign trade zone neighboring the Hilo international airport; and

(2) On the west side of the island of Hawaii, the Kawaihae harbor area that the department of transportation, harbors division, has proposed for biosecurity facilities.

SECTION 3. The department of business, economic development, and tourism shall submit a report, including recommendations and any proposed legislation, to the legislature, no later than twenty days prior to the convening of the regular session of 2015, on the status of the planning and feasibility studies and marketing and economic analysis for the development of one or more facilities on the island of Hawaii to be used for quarantine inspection, quarantine treatment, deconsolidation, and consolidation of imported and exported agricultural commodities.

SECTION 4. 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 2014-2015 for planning and feasibility studies and a marketing and economic impact analysis for one or more facilities on the island of Hawaii to be used for quarantine inspection, quarantine treatment, deconsolidation, and consolidation of imported and exported agricultural commodities.

The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this part.

PART II

SECTION 5. One of the missions of the department of business, economic development, and tourism is to promote industrial development and economic diversification by supporting existing and emerging industries, increasing exports of Hawaii products, and expanding Hawaii's participation in global trade and commerce. The department has prepared a statewide comprehensive economic development strategy. The strategy's report found that because Hawaii, particularly central Oahu, has a strong orientation toward diversified agriculture, identifying agricultural areas designated for the collection, consolidation, packing, and shipping of agricultural products continues to be a priority. As a means of achieving this priority, persons in the agricultural industry have expressed interest in expanding their operations through the leveraging of available resources available to them.

The legislature also recognizes that agriculture is and has long been a major economic driver for the State. To preserve this economic driver and increase its value, the department of business, economic development, and tourism, in collaboration with the department of agriculture, should perform planning, economic impact, and feasibility studies for one or more designated foreign-trade zone sites in central Oahu for the storage, deconsolidation, consolidation, processing, preparation, and packaging of imported and exported agricultural commodities. Designated foreign-trade zone areas can help further this initiative by making United States companies more competitive by offsetting customs advantages available to overseas producers that compete domestically and internationally.

The purpose of this part is to authorize the department of business, economic development, and tourism, in collaboration with the department of agriculture, to:

(1) Perform planning and feasibility studies for the implementation of designated foreign-trade zone sites for storage, deconsolidation, consolidation, processing, preparation, and packaging of imported and exported agricultural commodities; and

(2) Perform a marketing and economic impact analysis for the implementation of designated foreign-trade zone sites in central Oahu, specifically parcels of land identified by the following tax map keys: 7-1-002: 004, 7-1-002: 009, and 7-1-002: 023.

SECTION 6. (a) The department of business, economic development, and tourism, in collaboration with the department of agriculture, may:

(2) Perform a marketing and economic impact analysis for the implementation of designated foreign-trade zone sites in central Oahu.

(b) The studies and analysis shall include parcels of land identified by the following tax map keys: 7-1-002: 004, 7-1-002: 009, and 7-1-002: 023.

SECTION 7. The department of business, economic development, and tourism shall submit a report, including recommendations and any proposed legislation, to the legislature, no later than twenty days prior to the convening of the regular session of 2015, on the status of the planning and feasibility studies and marketing and economic analysis for the implementation of one or more designated foreign-trade zone sites in central Oahu for the storage, deconsolidation, consolidation, processing, preparation, and packaging of imported and exported agricultural commodities.

SECTION 8. 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 2014-2015 for planning and feasibility studies and a marketing and economic impact analysis for one or more designated foreign-trade zone sites in central Oahu for storage, deconsolidation, consolidation, processing, preparation, and packaging of imported and exported agricultural commodities.

The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this part.

PART III

SECTION 9. The legislature finds that technology applications have greatly assisted farmers with various tasks. These cyber tools monitor irrigation systems, mapping, grazing, pest management, harvest, weather, and fertilizer applications, all in real-time. These sophisticated technologies also have additional benefits in material cost, labor, and fuel savings because the farmer can refer to electronic files rather than driving out to a specific field. Reports show that the technology-savvy farmer is able to speed up the decision making cycle and do the job much more effectively.

The legislature further finds that farmers are adopting more technology at a rapid pace. Many of today's farmers carry either a tablet and smartphone, or both. Such tools digitize information that in the past were kept in notebooks; this information can now be stored online in a cloud-based system, where it can be shared instantly with fellow farmers. Moreover, as the federal government moves forward with the FDA Food Safety Modernization Act (P.L. 111-353), technological applications will be needed to assist farmers in tracking crops, including by categories of fields, soil types, and irrigation control.

The legislature also finds that as the State's food needs climb, and more farmers set their sights on local food production, the risk-taking experienced by farmers will be even more critical to the State's goal of achieving food sustainability. Agricultural communities, such as Monterey Bay, California, and St. Louis, Missouri, have focused on economic clusters to aid businesses. The clusters used in these regions were focused on agriculture � specifically, an agricultural technology cluster. The purpose of the clusters was to create a hub, sparking innovation and bringing together technology entrepreneurs and farmers to keep the agricultural industry thriving.

The legislature additionally finds that Hawaii imports about ninety per cent of its food. Challenges such as drought, selling produce at lower prices to compete with imported products, cost of labor and supplies, and workforce housing have squeezed profits � hampering business growth or even resulting in farmers going out of business. As a result, more farmers are looking to technology entrepreneurs to come up with ways to make the industry more efficient.

The legislature further finds that many farmers looking for an additional source of revenue for their farms have implemented elements of agricultural tourism. Agricultural tourism, or agritourism, is a commercial enterprise at a working farm, ranch, agricultural plant, or park conducted for the enjoyment or education of visitors, which generates supplemental income for the owner. Agritourism can include farm stands or shops, tours, on-farm classes, fairs, festivals, pumpkin patches, Christmas tree farms, weddings, orchard dinners, youth camps, and more. Many growers in the country offer agritourism opportunities to the public as a way of improving a farm's visibility and profitability. For example, in California, agritourism serves as a vital strategy for diversifying and boosting profit for a small but significant number of the state's farms. Since 2008, more than 2,400,000 visitors have participated in agritourism at California farms and ranches, with the state's agritourism operations and economic potential expected to continue to grow.

The legislature also finds that in 2012, as a way to save an industry, the State purchased and acquired one thousand seven hundred acres of agricultural land from the Galbraith Trust. These lands do not have any infrastructure, storage, or warehouse facilities on them. However, former agricultural and industrial lands nearby do contain and support such activity. These nearby parcels, recently acquired by the State, have infrastructure and warehouses to support food safety, packaging, processing, and storing produce farmed on the nearby lands. Processes and technologies will need to be updated to keep up with federal regulations.

The purpose of this part is to establish an agricultural technology park that can bridge the agricultural and technology gap and be used to provide agritourism benefits.

SECTION 10. Chapter 206M, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . agricultural techNOLOGY park

§206M‑ Agricultural technology park; established. There is established an agricultural technology park that shall include properties identified by the following tax map key numbers: 71002004, 71002023, and 71002099. The park shall be administered by the board.

§206M‑ Objective of the agricultural technology park. The objective of the agricultural technology park shall be to build relationships and promote collaboration between the agricultural and technology sectors to assist farmers and provide them with tools to succeed in the modern world. The agricultural technology park shall also be used to:

(1) Establish a strategy for securing investments in agricultural state facilities and providing jobs for rural communities; and

(2) Support agricultural tourism and provide benefits to agricultural producers within the agricultural technology park, including additional sources of revenue and increased public exposure to agricultural products.

§206M‑ Guidelines. (a) The board shall develop the agricultural technology park in consultation with but not limited to the: Hawaii housing finance and development corporation, department of agriculture, department of education, agribusiness development corporation, and University of Hawaii college of tropical agriculture and human resources.

(b) When designing and planning the park, the board and the agencies in subsection (a) may enter into cooperative agreements with coordinating entrepreneurs or public agencies that have the powers, services, and capabilities deemed necessary and appropriate for the development and implementation of the business and agricultural development plans.

SECTION 11. Section 206M-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established the high technology development corporation, which shall be a public body corporate and politic and an instrumentality and agency of the State. The development corporation shall be placed within the department of business, economic development, and tourism for administrative purposes, pursuant to section 26-35. The purpose of the development corporation shall be to facilitate the growth and development of the commercial high technology industry in Hawaii. Its duties shall include, but not be limited to:

(1) Developing and encouraging industrial parks as high technology innovation centers and developing or assisting with the development of projects within or outside of industrial parks, including participating with the private sector in such development;

(2) Providing financial and other support and services to Hawaii-based high technology companies;

(3) Collecting and analyzing information on the state of commercial high technology activity in Hawaii;

(4) Promoting and marketing Hawaii as a site for commercial high technology activity; [~~and~~]

(5) Providing advice on policy and planning for technology-based economic development[.]; and

(6) Developing an agricultural technology park pursuant to part ."

SECTION 12. 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 2014-2015 to establish an agricultural technology park pursuant to this part.

The sum appropriated shall be expended by the high technology development corporation for the purposes of this part.

PART IV

SECTION 13. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 14. This Act shall take effect on July 1, 2050.

Report Title:

Agricultural Quarantine Facility; Studies; Agricultural Foreign-trade Zone; HTDC; Agricultural Technology Park; Agritourism; Appropriation

Description:

Authorizes DBEDT, in collaboration with DOA, to perform studies and analysis relating to: (1) Establishing facilities on the island of Hawaii for quarantine inspection and treatment and handling imported and exported commodities; and (2) Implementation of designated foreign-trade zone sites. Creates an agricultural technology park under the HTDC. Makes appropriations. Effective 7/1/2050. (SD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.