Bill Text: HI SB612 | 2018 | Regular Session | Amended

Hawaii Senate Bill 612 (Prior Session Legislation)

Bill Title: Relating To Agriculture.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Engrossed - Dead) 2018-03-15 - Received notice of discharge of conferees (Hse. Com. No. 385). [SB612 Detail]

Download: Hawaii-2018-SB612-Amended.html

THE SENATE	S.B. NO.	612
TWENTY-NINTH LEGISLATURE, 2017		S.D. 2
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

RELATING TO AGRICULTURE.

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

PART I

SECTION 1. The legislature finds that the Hawaii livestock industry consistently identifies the cost of feed as the most expensive component in operational costs. This concern is in line with the national and global effort to reduce feed costs by replacing high-cost ingredients with lower-cost alternatives. Hawaii's situation is exacerbated by the lack of local feed mills, which necessitates the importation of livestock feed. Years of research and local workshops to encourage and support the development of locally produced feed have not improved the deficient feed stock situation in the State.

The legislature further finds that the department of agriculture is committed to reducing the cost of production for the State's livestock and aquaculture industries by reducing the cost of feed. Hawaii has the potential ingredients for the research, development, and production of local feedstock. The department of agriculture has initiated a feed development process to identify, assess, and validate available local feed ingredients.

The purpose of this part is to:

(1) Make a housekeeping amendment to harmonize a qualified feed developer grant program requirement and a qualified producer grant program requirement;

(2) Appropriate funds to reimburse qualified producers of certain products for their cost of feed; and

(3) Appropriate funds to reimburse feed developers and researchers for the costs of feed development and research.

SECTION 2. Section 155D-2.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Documentation of animal feed development costs, as requested by the department, shall be filed for feed sold to qualified producers within the immediately preceding fiscal quarter of the filing [~~and shall be effective for feed development costs incurred after July 1, 2016~~]."

SECTION 3. 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 2017-2018 for the livestock revitalization program of the department of agriculture that shall be allocated as follows:

(1) $ to reimburse qualified producers of milk, pork, eggs, poultry, beef, sheep, lamb, goats, and seafood, for the cost of feed for beef cattle, dairy cows or milking goats, goats raised for meat, sheep, hogs, fish, crustaceans, and poultry; and

(2) $ to reimburse qualified feed developers and researchers for the costs of development and research of feed for sale to qualified producers; provided that of the sum appropriated, the department of agriculture may expend up to $ to administer and operate the qualified feed developer grant program pursuant to section 155D‑2.5, Hawaii Revised Statutes, including support services and general administrative overhead.

The sum appropriated shall be expended by the department of agriculture for the purposes of this part.

PART II

SECTION 4. The legislature finds that over the last several decades, the State and the private sector have searched for ways to reduce or eliminate food and solid waste products, as well as construction waste and recycling materials. The agribusiness development corporation is currently involved in a public-private partnership to develop a zero waste conversion process on the island of Hawaii converting papaya waste into fuel and animal feed. The zero waste process utilizes every stage of the papaya plant, from seed to fruit, to reduce the amount of food waste that is delivered to landfills while producing renewable bioenergy fuel.

The legislature further finds that livestock feed costs for feed shipped to Hawaii for local agriculturalists and aquaculturalists often exceed sixty per cent of overall livestock production costs in Hawaii. The agribusiness development corporation seeks to broaden its waste-reduction and recycling projects by partnering with a viable and qualified entity to establish a livestock feed mill operation using waste materials, such as unusable macadamia nut fruit and shells, and converting those otherwise unusable parts and byproducts into aquaculture and livestock feed. This process has shown great promise in farm trials. The agribusiness development corporation will assist with the development of the plans and design of the operation, and will purchase the equipment to convert and process the waste materials. The project partner will be required to have adequate warehouse space to house the equipment and be required to provide the labor for the manufacture and sale of the resulting product.

The purpose of this part is to further the State's goals of reducing waste, reducing livestock production costs, and producing livestock feed within the State to enable agriculture and aquaculture operations in the State to thrive by funding the planning, designing, and construction of a livestock feed mill.

SECTION 5. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2017-2018 for the purpose of planning, designing, and purchasing a livestock feed mill.

SECTION 6. The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2020, shall lapse as of that date.

PART III

SECTION 7. Statutory material to be repealed is bracketed and stricken.

SECTION 8. This Act shall take effect on July 31, 2150.

Report Title:

Department of Agriculture; Qualified Feed Developer Grants; Livestock Revitalization Program; Appropriation; GO Bonds

Description:

Makes housekeeping amendment to the Livestock Revitalization Program. Appropriates funds to the Department of Agriculture for the feed developer grant program and reimbursements to qualified producers for feed costs. Authorizes GO bonds for the planning, designing, and purchasing of a livestock feed mill. (SB612 HD1)

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