Bill Text: HI SB433 | 2017 | Regular Session | Amended


Bill Title: Relating To Agriculture.

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Introduced - Dead) 2017-02-15 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB433 Detail]

Download: Hawaii-2017-SB433-Amended.html

THE SENATE

S.B. NO.

433

TWENTY-NINTH LEGISLATURE, 2017

S.D. 1

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 there is a great need to promote and assist with food sustainability in the State.  Over the past several decades, the amount of locally-grown foods has diminished significantly, and currently, only about ten per cent of the food that residents and visitors consume is grown in the State.  In response to the state of food production in Hawaii, the governor has stated a goal of doubling local food production by 2020.

     The legislature also finds that the State has a constitutional mandate to conserve agricultural lands.  Article XI, section 3, of the Constitution of the State of Hawaii outlines the State's responsibilities to conserve and protect agricultural lands.  It also charges the State with the responsibility of promoting diversified agriculture, increasing agricultural self-sufficiency, and assuring the availability of agriculturally suitable lands.  The downsizing of Hawaii's sugar and pineapple plantation agricultural industry over the decades and the closures of large operations, including those of the Waialua Sugar Mill, the Hawaiian Commercial & Sugar Company, and, most notably Del Monte and the Dole Food Company, have resulted in the availability of large tracts of former agricultural land for sale.

     The legislature further finds that article XI, section 4, of the Constitution of the State of Hawaii grants the State the power to acquire interests in real property to control future growth, development, and land use within the State.  The State established the agribusiness development corporation in 1994, and tasked it with a top priority of transitioning Hawaii's agriculture industry from an industry dominated by sugar and pineapple to one based on a greater diversity of crops.  Hawaii's environmental response, energy, and food security tax, also known as the barrel tax, provides a funding source for energy and food security initiatives.  Of the $1.05 per barrel tax on petroleum products other than aviation fuel, only 45 cents are allocated to supporting environmental response, energy, and food security.  The remaining 60 cents are deposited in the general fund.

     Accordingly, the purpose of this Act is to align the environmental response, energy, and food security tax with its original intent by reallocating a portion of the tax on non-aviation fuel petroleum products from the general fund to the agribusiness development corporation to fund the acquisition of agricultural land and to assist with food sustainability in the State.

     SECTION 2.  Section 163D-17, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There is established the Hawaii agricultural development revolving fund, to which shall be credited any state appropriations to the fund [or], the portion of the environmental response, energy, and food security tax specified under section 243-3.5, and other moneys made available to the fund, to be expended as directed by the corporation[.]; provided that any moneys deposited into the fund pursuant to section 243‑3.5 shall be expended at the sole discretion of the board to acquire agricultural lands and to assist with food sustainability."

     SECTION 3.  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-2169.1; [and]

     (4)  15 cents of the tax on each barrel shall be deposited into the agricultural development and food security special fund established under section 141-10[.]; and

     (5)        cents of the tax on each barrel shall be deposited into the Hawaii agricultural development revolving fund established under section 163D-17.

     The tax imposed by this subsection shall be paid by the distributor of the petroleum product."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.

 


 


 

Report Title:

Agricultural Lands; Barrel Tax; Agribusiness Development Corporation; Food Sustainability

 

Description:

Amends the environmental response, energy, and food security tax to allocate a portion of the proceeds to the Hawaii agricultural development revolving fund.  Directs funds deposited into the Hawaii agricultural development revolving fund through the environmental response, energy, and food security tax to be expended to acquire agricultural land and to assist with food sustainability.  Takes effect 7/1/2050.  (SD1)

 

 

 

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

 

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