Bill Text: HI SB1559 | 2011 | Regular Session | Introduced
Bill Title: Important Agricultural Lands; Incentives
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2011-07-12 - (S) Vetoed on 07-12-11 - Returned from the Governor without approval (Gov. Msg. No. 1354). [SB1559 Detail]
Download: Hawaii-2011-SB1559-Introduced.html
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THE SENATE |
S.B. NO. |
1559 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to important agricultural lands.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
EXPEDITING PERMITS FOR IMPORTANT AGRICULTURAL LANDS
SECTION 1. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§46- County building permits; important agricultural land. (a) Each county agency that issues building, construction, or development related permits shall establish a procedure for the priority processing of a permit application submitted by a private entity for a construction project that uses products grown on lands designated as important agricultural lands. The permit processing procedures shall give priority to private sector permit applicants at no additional cost to the applicant and shall provide that if the county does not approve, conditionally approve, or disapprove a completed application within ninety days of the applicant's submission to the county of the application, the application shall be deemed approved. Each county shall develop rules informing farmers, ranchers, and landowners of important agricultural lands that define informational needs and timeframes for permit processing.
(b) Each county shall develop rules for exempting from permit conditions structures strictly used for storage and that:
(1) Are not attached to any other structure; and
(2) Do not have any plumbing, heating, or electrical systems.
(c) For purposes of this section:
"Structures associated with important agricultural lands" means post-harvest handling facilities, processing facilities and value added production facilities, when a majority of the feedstocks or agricultural products handled or processed by the facility originate from important agricultural lands.
"Important agricultural lands" are lands designated pursuant to sections 205-44 and 205-45."
PART II
INCORPORATION INTO GENERAL PLANS
SECTION 2. Section 226-58, Hawaii Revised Statutes, is amended to read as follows:
"§226-58 County general plans. (a) The county general plans and development plans shall be formulated with input from the state and county agencies as well as the general public.
County general plans or development plans shall indicate desired population and physical development patterns for each county and regions within each county. In addition, county general plans or development plans shall address the unique problems and needs of each county and regions within each county. The county general plans or development plans shall further define applicable provisions of this chapter; provided that any amendment to the county general plan of each county shall not be contrary to the county charter. The formulation, amendment, and implementation of county general plans or development plans shall take into consideration statewide objectives, policies, and programs stipulated in state functional plans approved in consonance with this chapter.
(b) County general plans shall be formulated on the basis of sound rationale, data, analyses, and input from state and county agencies and the general public, and contain objectives and policies as required by the charter of each county. Further, the county general plans should:
(1) Contain objectives to be achieved and policies to be pursued with respect to population density, land use, transportation system location, public and community facility locations, water and sewage system locations, visitor destinations, urban design, and all other matters necessary for the coordinated development of the county and regions within the county; and
(2) Contain implementation priorities and actions to carry out policies to include but not be limited to land use maps, programs, projects, regulatory measures, standards and principles, and interagency coordination provisions.
(c) County general plans shall include accommodation for the designation of important agricultural lands.
(1) County identification of important agricultural lands shall follow the standards and criteria identified in section 205-44(c) and consider the following:
(A) Lands meeting any of the criteria in section 205-44(c) shall be given initial consideration; provided that the designation of important agricultural lands shall be made by weighing the standards and criteria with each other to meet the constitutionally mandated purposes in article XI, section 3, of the Hawaii State Constitution and the objectives and policies for important agricultural lands in sections 205-42 and 205-43;
(B) Lands for grazing or providing feed for livestock are recognized as part of an agricultural production system; and
(C) Not only lands with soil classified by the land study bureau's detailed land classification as overall (master) productivity rating class A or B are qualified to be important agricultural lands, but rather lands that can sustain or have a viable agricultural operation in place shall be given priority consideration; and
(2) Identification of incentives and implementation plans to ensure viability of operations on important agricultural lands shall be included within the county general plan.
(d) For purposes of this section, "important agricultural lands" means are lands designated pursuant to sections 205-44 and 205-45."
PART III
TAX INCENTIVES
SECTION 3. Chapter 246, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:
"§246- Important agricultural lands; structures. (a) Any other law to the contrary notwithstanding, any permanent structure constructed or installed on any taxable real property designated as important agricultural lands, for activities related to growing of crops or maintaining of livestock, processing of products grown or raised on such lands or value added production, shall be exempted in determining and assessing the value of that taxable real property for ten years or for a period of ten years from the first day of January following commencement of construction or installation of the structure on the property for such purposes; provided that any temporary structure so constructed or installed for such purpose, shall be so exempted not subject to the ten-year limitation; provided further that such exemption shall continue only so long as the structure is maintained in good condition. Only structures used for commercial agricultural or horticultural purposes shall be included in this exemption.
(b) For the purposes of this chapter:
"Structures associated with important agricultural lands" means post harvest handling facilities, processing facilities and value added production facilities; provided that a majority of the feedstocks handled or processed by the facility shall be produced on lands designated as important agricultural lands.
"Important agricultural lands" are lands designated pursuant to sections 205-44 and 205-45.
§246- Important agricultural lands; exemption. (a) Any portion of real property that is designated as important agricultural lands pursuant to part III of chapter 205 shall be exempt from real property taxes; provided that the exemption shall continue only so long as the property remains classified as important agricultural lands."
PART IV
ENERGY
SECTION 4. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§269- Preferential energy rates; important agricultural lands. (a) The public utilities commission shall establish, by rule or decision and order, preferential rates for the purchase of energy that is used or consumed for agricultural activities on important agricultural lands, as designated pursuant to sections 205-44 and 205-45.
(b) Upon receipt of a bona fide request for the purchase of energy that is used or consumed for agricultural activities on important agricultural lands, and proof that the energy will be used or consumed in conjunction with agricultural activities, a public utility shall forward the request for preferential rates to the public utilities commission for approval."
PART V
INSURANCE
SECTION 5. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10E to be appropriately designated and to read as follows:
"§431:10E- Preferred insurance rates; important agricultural lands. Insurers may provide preferential insurance rates to owners or lessees of important agricultural lands, as designated pursuant to sections 205-44 and 205-45."
PART VI
ENTERPRISE ZONE
SECTION 6. Chapter 209E, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:
"§209E-A Important agricultural lands; designation as an enterprise zone. Notwithstanding section 209E-4, all lands designated as important agricultural lands are hereby declared to be an enterprise zone. Qualified persons who engage in qualified agricultural activities who do not meet the eligibility requirements of section 209E-9 shall nonetheless be entitled to the tax credits described in section 209E-B.
§209E-B Important agricultural lands tax credit. (a) The department of land and natural resources shall certify annually to the department of taxation the applicability of the tax credit provided in this section for qualified persons against any taxes due the State. Except for the general excise tax, the credit shall be eighty per cent of the tax due for the first tax year, seventy per cent of the tax due for the second tax year, sixty per cent of the tax due for the third year, fifty per cent of the tax due the fourth year, forty per cent of the tax due the fifth year, thirty per cent of the tax due the sixth year, and twenty per cent of the tax due the seventh year. For qualified persons engaged in the producing or processing of agricultural products, the credit shall continue after the seventh year at the rate of twenty per cent of the tax due for each of the subsequent three tax years. Any unused tax credit shall not be applied to future tax years.
(b) When a partnership is eligible for a tax credit under this section, each partner shall be eligible for the tax credit provided for in this section on the partner's individual income tax return in proportion to the amount of income received by the partner from the partnership. Any qualified person having taxable income from qualified agricultural activity, both within and without important agricultural lands, shall allocate and apportion its taxable income attributable to the conduct of business. Tax credits provided for in this section shall only apply to taxable income of a qualified person attributable to the conduct of agricultural activities within important agricultural lands located within the same county.
(c) In addition to any tax credit authorized under this section, any qualified business shall be entitled to a tax credit against any taxes due the State in an amount equal to a percentage of unemployment taxes paid. The amount of the credit shall be equal to eighty per cent of the unemployment taxes paid during the first year, seventy per cent of the taxes paid during the second year, sixty per cent of the taxes paid during the third year, fifty per cent of the taxes paid during the fourth year, forty per cent of the taxes paid during the fifth year, thirty per cent of the taxes paid during the sixth year, and twenty per cent of the taxes paid during the seventh year. For qualified persons engaged in the producing or processing of agricultural products, the credit shall continue after the seventh year in an amount equal to twenty per cent of the taxes paid during each of the subsequent three tax years.
(d) Tax credits provided for in subsection (c) shall only apply to the unemployment tax paid on employees employed at the qualified person's establishment or establishments within important agricultural lands located within the same county. Any tax credit not usable shall not be applied to future tax years.
(e) The department of land and natural resources shall certify annually to the department of taxation that any qualified business is exempt from the payment of general excise taxes on the gross proceeds from a qualified agricultural activity. The exemption shall extend for a period not to exceed seven years; provided that for qualified businesses engaged in the manufacturing of tangible personal property or the producing or processing of agricultural products, the exemption shall extend for a period not to exceed ten years; provided further that if a force majeure event occurs, then the period of time shall be tolled until the force majeure event ceases."
SECTION 7. Section 209E, Hawaii Revised Statutes, is amended by adding three new definitions to be appropriately inserted and to read as follows:
""Important agricultural lands" means those lands designated pursuant to sections 205-44 and 205-45.
"Qualified agricultural activities" are those activities described in section 205-4.5(a)(1), (2), (3), (11), (13), (16), and (18) that occur on important agricultural land.
"Qualified person" means an owner or lessee of important agricultural lands, whether an individual, corporation, partnership, or other business entity, that engages in qualified agricultural activities on the important agricultural lands."
PART VII
REDUCING INFRASTRUCTURE REQUIREMENTS
SECTION 8. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§46- Important agricultural lands; infrastructure. No county agency that issues building, construction, or development related permits shall require an applicant who is an owner or lessee of important agricultural land to construct or install any infrastructure for the improvements to be installed by the applicant, including the installation of roadways, sidewalks, and street lighting. In lieu of the county requirements for the improvements, the applicant shall obtain the approval of the department of agriculture for the proposed plan for the improvements, which approval shall be submitted to the county together with all other requirements for the building, construction, or development related permits.
For purposes of this section, "important agricultural lands" are lands designated pursuant to sections 205-44 and 205-45."
SECTION 9. Section 141-1, Hawaii Revised Statutes, is amended to read as follows:
"§141-1 Duties in general. The department of agriculture shall:
(1) Gather, compile, and tabulate, from time to time, information and statistics concerning:
(A) Entomology and plant pathology: Insects, scales, blights, and diseases injurious or liable to become injurious to trees, plants, or other vegetation, and the ways and means of exterminating pests and diseases already in the State and preventing the introduction of pests and diseases not yet here; and
(B) General agriculture: Fruits, fibres, and useful or ornamental plants and their introduction, development, care, and manufacture or exportation, with a view to introducing, establishing, and fostering new and valuable plants and industries;
(2) Encourage and cooperate with the agricultural extension service and agricultural experiment station of the University of Hawaii and all private persons and organizations doing work of an experimental or educational character coming within the scope of the subject matter of chapters 141, 142, and 144 to 150A, and avoid, as far as practicable, duplicating the work of those persons and organizations;
(3) Enter into contracts, cooperative agreements, or other transactions with any person, agency, or organization, public or private, as may be necessary in the conduct of the department's business and on such terms as the department may deem appropriate; provided that the department shall not obligate any funds of the State, except the funds that have been appropriated to the department. Pursuant to cooperative agreement with any authorized federal agency, employees of the cooperative agency may be designated to carry out, on behalf of the State the same as department personnel, specific duties and responsibilities under chapters 141, 142, 150A, and rules adopted pursuant to those chapters, for the effective prosecution of pest control and animal disease control and the regulation of import into the State and intrastate movement of regulated articles;
(4) Secure copies of the laws of other states, territories, and countries, and other publications germane to the subject matters of chapters 141, 142, and 144 to 150A, and make laws and publications available for public information and consultation;
(5) Provide buildings, grounds, apparatus, and appurtenances necessary for the examination, quarantine, inspection, and fumigation provided for by chapters 141, 142, and 144 to 150A; for the obtaining, propagation, study, and distribution of beneficial insects, growths, and antidotes for the eradication of insects, blights, scales, or diseases injurious to vegetation of value and for the destruction of injurious vegetation; and for carrying out any other purposes of chapters 141, 142, and 144 to 150A;
(6) Formulate and recommend to the governor and legislature additional legislation necessary or desirable for carrying out the purposes of chapters 141, 142, and 144 to 150A;
(7) Publish at the end of each year a report of the expenditures and proceedings of the department and of the results achieved by the department, together with other matters germane to chapters 141, 142, and 144 to 150A and that the department may deem proper;
(8) Administer a program of agricultural planning and
development, including the formulation and implementation of general and
special plans, including but not limited to the functional plan for
agriculture; administer the planning, development, and management of the
agricultural park program; plan, construct, operate, and maintain the state
irrigation water systems; review, interpret, and make recommendations with
respect to public policies and actions relating to agricultural land and water
use; assist in research, evaluation, development, enhancement, and expansion of
local agricultural industries; and serve as liaison with other public agencies
and private organizations for the above purposes. In the foregoing, the
department shall act to conserve and protect agricultural lands and irrigation
water systems, promote diversified agriculture, increase agricultural self-sufficiency,
and ensure the availability of agriculturally suitable lands; [and]
(9) Manage, administer, and exercise control over any
public lands, as defined under section 171-2, that are designated important
agricultural lands pursuant to section 205-44.5, including but not limited to
establishing priorities for the leasing of these public lands within the
department's jurisdiction[.]; and
(10) Review the agricultural plans described in section 46‑ , and approve, disapprove, or conditionally approve the agricultural plans."
PART VIII
DAMS
SECTION 10. To assure that important agricultural lands may support a robust agricultural industry and thereby support the goals of food security and agricultural sustainability, a sustainable and effective system for irrigation and agricultural water must be sought. Currently, many dams in Hawaii within areas that may be designated as important agricultural lands are in dire need of repair. Landowners need financial assistance in making these repairs. Accordingly, part VIII of this Act addresses those needs.
SECTION 11. Section 179D-25, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is established in the department a special fund, to be designated the dam and reservoir safety special fund. The fund shall be administered by the board. The following shall be deposited into the dam and reservoir safety special fund:
(1) Appropriations by the legislature;
(2) All fees and administrative charges collected under this chapter or any rule adopted thereunder;
(3) Moneys collected as fines or penalties imposed under this chapter or any rule adopted thereunder;
(4) Moneys derived from public or private sources to benefit dam and reservoir safety;
(5) Moneys collected in full or partial satisfaction of liens created under this chapter;
(6) Any moneys collected from the sale of retail items by the department relating to dam and reservoir safety;
(7) Any other moneys collected pursuant to this
chapter or any rules adopted thereunder; [and]
(8) Fees deposited pursuant to section 243-3.5; and
[(8)] (9) Moneys derived from interest,
dividends, or other income from other sources."
SECTION 12. Section 243-3.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) In addition to any other taxes provided by law, subject to the exemptions set forth in section 243-7, there is hereby imposed a state environmental response, energy, and food security tax on each barrel or fractional part of a barrel of petroleum product sold by a distributor to any retail dealer or end user of petroleum product, other than a refiner. The tax shall be $1.05 on each barrel or fractional part of a barrel of petroleum product that is not aviation fuel; provided that of the tax collected pursuant to this subsection:
(1) 5 cents of the tax on each barrel shall be deposited into the environmental response revolving fund established under section 128D-2;
(2) 15 cents of the tax on each barrel shall be deposited into the energy security special fund established under section 201-12.8;
(3) 10 cents of the
tax on each barrel shall be deposited into the energy systems development
special fund established under section 304A-2169; [and]
(4) 5 cents of the tax on each barrel shall be deposited into the dam and reservoir safety special fund established under section 179D-25; and
[(4)] (5) [15] 10 cents of the tax
on each barrel shall be deposited into the agricultural development and food
security special fund established under section 141‑10.
The tax imposed by this subsection shall be paid by the distributor of the petroleum product."
SECTION 13. 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 the fiscal year 2011-2012, and the same amount or so much thereof as may be necessary for the fiscal year 2012-2013, the to restore funding for the restoration of dams located within land designated as important agricultural lands, pursuant to chapter 205, Hawaii Revised Statutes.
The sums appropriated shall be expended by the department of land and natural resources for the purposes of this Section.
Part IX
MISCELLANEOUS PROVISIONS
SECTION 14. In codifying the new sections added by section 6 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 15. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 16. This Act shall take effect upon its approval; provided that:
(1) Part VIII of this Act shall take effect on July 1, 2011;
(2) Part III of this Act shall apply for the taxable years beginning after December 31, 2012; and
(3) The amendments made to section 243-3.5, Hawaii Revised Statutes, shall not be repealed when section 243-3.5, Hawaii Revised Statutes, is reenacted on June 30, 2015, pursuant to Act 73, Session Laws of Hawaii 2010.
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INTRODUCED BY: |
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Report Title:
Important Agricultural Lands; Incentives; Counties; Appropriations
Description:
Establishes incentives for important agricultural lands, including reduction of unnecessary infrastructure requirements, expedited permitting procedures, tax incentives, and funding mechanisms for dams that provide irrigation for agricultural activities on important agricultural lands.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
