1997 Bills and Resolutions

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February 20, 1997

MEMORANDUM


TO:       Members of Hawaii's Aquaculture Community
FROM:     Yara L. Lamadrid-Rose Information Specialist
SUBJECT:  Aquaculture and Related Bills Introduced in the
          1997 Legislature

The State Legislature convened January 15 for a three and a half month session, the first year of a two-year session. Due to the continuing tight State budget situation, legislators will be facing pressure to make budgetary cuts, as well as, to develop ways to stimulate the economy. For your information, a summary of aquaculture and related bills, and resolutions to date, introduced this session is enclosed.

The summary is divided into the following categories for easier reading: MEASURE (bill number), TITLE, INTRODCR (who introduced the bill), SEE ALSO (related or companion bills), DESCRIPT (description of the bill) and STATUS (where bill is in the legislative process). Also included is our brief assessment of the possible aquaculture impacts of these bills. Some of the bills that we are following are "dead" for this year because they did not met the necessary deadlines, but they are "alive" for the 1998 session.

Among the many bills of interest are: HB 1485 Relating to Aquaculture Loans, which would provide DOA flexibility in providing "quick" aquaculture loans up to $25,000. HB2002 Relating to Aquaculture, which would change the definition of aquaculture in DOA's Aquaculture Loan Program from "food and fiber" to allow loans for ornamental producers. HB 1548 Relating to Fishing, which would require licenses for commercial marine aquarium fish collectors and dealers (NOTE: in its present form, the bill could also require aquarium fish growers who export out-of-state to obtain this license).

We are monitoring and participating in the session as in previous years. As usual, we will work with industry to facilitate participation in the legislative process including-testifying on those bills that concern you. NOTE: Public hearing notices for bills are often last minute. Industry participation and support is key to positive legislative action. Please contact me with any questions or concerns (587-0030 or Fax 587-0033). Neighbor Island persons can call toll-free by island: Kauai, 274-3141; Maui, 984-2400; Big Island, 974-4000; and Molokai/Lanai, 1 (800) 468-4644. We look forward to assisting you in participating in the political process.



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1997 Bills and Resolutions

The following is a summary of aquaculture and related bills, and resolutions to date, introduced in the 1997 Legislative Session.

MEASURE  HB0170
TITLE    RELATING TO INCOME TAX
INTRODCR Nakasone B (586-6210)
SEE ALSO HB0644

DESCRIPT Provides a Farmers Irrigation Income Tax Credit for a person who derives at least 50% of gross income from farming, purchases water from a county board of water, and does not have access to state irrigation projects. Credit of 50% of the difference between the amount paid during the tax year for water purchased from the county and the amount the taxpayer would have paid during the tax year for water had the taxpayer had access to state irrigation system.
STATUS House -- Passed AGR, Referred to FIN -- PENDING FURTHER ACTION
Aquaculture impacts: Could provide a tax credit to aquafarmers that rely on county water.

MEASURE HB0351 (HSCR 19)
TITLE RELATING TO ECONOMIC DEVELOPMENT
INTRODCR Herkes R (586-6530)

SEE ALSO SBO871 SD1

DESCRIPT Construction permit applications requiring state agency approval will be processed in a consolidated application. DBEDT to administer and facilitate the consolidated procedure.

Establishes a Permit Process Task Force to streamline and facilitate the state approval process.

STATUS House -- Passed EDB, Referred to CPC, FIN -- PENDING FURTHER ACTION
Aquaculture impacts: Could streamline the construction permit process for aquabusinesses.

MEASURE HB055IHDI (HSCR81)
TITLE RELATING TO AGRICULTURAL LANDS
INTRODCR Herkes R (586-6530)

DESCRIPT State lease assessments in any county having a resident population of not more than 60 persons per square mile shall not be increased, adjusted, or renegotiated to a higher rate for agricultural and public park lands designated for agricultural or aquacultural activities and uses, and public lands designated for pasture uses.

STATUS House -- Passed AGR, Referred to WLU, FIN -- PENDING FURTHER ACTION
Aquaculture impacts: Could result no increases in state leases for some rural counties aquafarmers.

MEASURE HB1342HDI (HSCR492)
TITLE RELATING TO LAND USE
INTRODCR Morita H (586-8435)

DESCRIPT Allows 1 single family dwelling to be located on agricultural district lands that are not suited for agricultural activities.

STATUS House -- Passed HSH, Referred to WLU, FIN -- PENDING FURTHER ACTION
Aquaculture impacts: Could allow aquafarmers to build a house on their ag land.

MEASURE HB1485 HD I (HSCR 103)
TITLE RELATING TO AQUACULTURE LOANS
INTRODCR Nakasone B (586-6210)

DESCRIPT Delegates authority to the chairperson of DOA to approve loans, where the requested amount, plus any principal balance on existing loans to the applicant, does not exceed $25,000 of state funds. Defines and provides criteria for class D loans (emergency loans).

STATUS House -- Passed AGR, Referred to FIN -- PENDING FURTHER ACTION Aquaculture impacts: Could result in streamlined process for small and emergency aquaculture loans.

MEASURE HB1548 HDI (HSCR 499)
TITLE RELATING TO FISHING
INTRODCR Tamas D (586-8510)

DESCRIPT Requires commercial aquarium fish collector's permits and aquarium fish dealers license for the purpose of commercial sale or export. Directs DLNR to improve enforcement of established fishing restrictions and prohibitions, improve data collection relating to the export and taking of fish, encourage the development and, installation of artificial reefs, and encourage the development of a aquarium fish aquaculture industry.

STATUS House -- Passed OMR, Referred to JUD -- PENDING FURTHER ACTION
Aquaculture impacts: In its current form, could require aquarium fish growers, who export product out-of-state, to obtain license.

MEASURE HB1549
TITLE RELATING TO LABELING
INTRODCR Tamas D (586-8510)

SEE ALSO HB 1957

DESCRIPT Requires that any aquatic food for sale labeled using a Hawaiian name which is not grown, manufactured, significantly processed, or landed within the State, to have a conspicuous label clearly stating that it is imported. Prohibits a retail store or restaurant from selling any imported aquatic food using a Hawaiian name without clearly stating that it is imported.

STATUS House -- Referred to CPC/JUD-- PENDING FURTHER ACTION
Aquaculture impacts: Could better enforce laws against mislabeling of imported product as Hawaii grown.

MEASURE HB 1696
TITLE RELATING TO NELHA
INTRODCR Souki J (BR) (586-6100)

SEE ALSO SB 1426

DESCRIPT Expands the duties and purpose of NELHA to include supporting ocean research and technology development projects that support national and state interests, use facilities and infrastructure in Hawaii, and foster potential commercial development.

STATUS House -- Referred to EEP/OMR -- PENDING FURTHER ACTION
Aquaculture impacts: Could expand the activities and functions at NELHA.

MEASURE HB175O HDI (HSCR 181, 440)
TITLE RELATING TO PUBLIC LANDS
INTRODCR Souki J (BR) (586-6100)

SEE ALSO SBI611 SD1

DESCRIPT Allows the assignment and transfer of a lease if, in addition to approval by DLNR, in the case of agricultural areas, the assignee meets the qualifications of a bona fide farmer.

STATUS House -- Passed AGR, WLU, Referred to FIN -- PENDING FURTHER ACTION
Aquaculture impacts: Could give greater opportunities for aquafarmers to obtain ag land leases.

MEASURE HB1752 (HSCR 443)
TITLE RELATING TO PUBLIC LANDS
INTRODCR Souki J (BR) (586-6100)

DESCRIPT Would require that, in the event of a re-opening, the rental for any ensuing period for public land leases be the fair market rental at the time of re-opening.

STATUS House -- Passed WLU, Referred to FIN -- PENDING FURTHER ACTION
Aquaculture impacts: Could result in decreased lease rents to aquafarmers due to recent land devaluations.

MEASURE HB2002
TITLE RELATING TO AQUACULTURE
INTRODCR Hiraki K (586-6180)

SEE ALSO SB 1849

DESCRIPT Expands definition of aquaculture by deleting the requirement that plants and animals be raised for food and fiber and adding the requirement that they be produced in a controlled salt, brackish, or freshwater environment.

STATUS House -- Referred to AGR -- PENDING FURTHER ACTION
Aquaculture impacts: Could open DOA's Aquaculture Loan Program to aquarium products growers.

MEASURE HBOO20
TITLE REQUESTING THE ESTABLISHMENT OF A TASK FORCE ON IMPORTATION OF MICROORGANISMS FOR RESEARCH AND COMMERCIAL USE
INTRODCR Tanas D (586-8510)

DESCRIPT Requests DOA to establish a Task Force on the importation of microorganisms to include representatives from: USDA; DOA; DBEDT; ADP; UH departments of Microbiology, Tropical Medicine, Pacific Biomedical Research Institute, SGES, and School of Ocean and Earth Science and Technology; and commercial microalgae or other microorganisms producers. The Task Force will review existing statutes and regulations; consider the needs of the research community and private sector; make recommendations to modify existing statutes and regulations to be more effective in meeting research and commercial needs while cognizant of the health and safety concerns of government; make recommendations to decrease the time to receive import permits; and review the various lists to remove redundancy with federal regulations and update the lists (conditionally-approved, restricted and prohibited). Report to the Legislature in 1998.

STATUS House -- Referred to AGR, FIN -- PENDING FURTHER ACTION
Aquaculture impacts: Could streamline the permit process for importing microorganisms and expand permitted species.

MEASURE SCR001
TITLE REQUESTING THE ESTABLISHMENT OF A TASK FORCE ON NATIVE HAWAIIAN CULTURAL FOOD RESOURCES.
INTRODCR Solomon M (586-6940)

DESCRIPT Requests OHA to facilitate a task force comprised of experts in agriculture, horticulture, economics, farming, fishing, and nutrition from the private sector, UH, DOA, DOH, DBEDT, representatives from farming and fishing associations; and individual taro farmers, fishermen, limu growers, and other cultural food producers, to develop a plan of action to protect, improve, and expand traditional food resources and production. Report to the Legislature in 1998.

STATUS Senate -- Referred to WLH/ECD -- PENDING FURTHER ACTION
Aquaculture impacts: Could increase market opportunities for limu growers.

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BELOW ARE OTHER BILLS OF INTEREST THAT WE ARE TRACKING:

HB0093 RELATING TO LAND USE, Amends of the land evaluation and site assessment (LESA) system, by requiring the counties, DOA, DLNR, and Land Use Commission to replace the agricultural, urban, and rural district classifications with important agricultural, conservation and other lands classifications.

HB0505 RELATING TO AGRICULTURE, Authorizes DOA to control or eradicate pests, including the destruction of any plants, animals, or microorganisms if necessary to protect the agricultural, horticultural, aquacultural, or livestock industries of the State.

HB0760 (SB802) RELATING TO AGRICULTURE, Requires DOA to acquire, administer, improve, and maintain the lower Hamakua ditch.

HB1356 RELATING TO PLANT AND NON-DOMESTIC QUARANTINE, Exempts UH researchers from these quarantine laws relating to the importation, possession, transportation, propagation, sale, transfer, and harboring of microorganisms.

HBI367 RELATING TO NELHA, Allows NELHA to operate retail concessions unrelated to research, development and commercialization of natural energy resources in Hawaii but that financially support its primary activities.

HB2137 RELATING TO COASTAL ZONE MANAGEMENT, Increases the value limit for a special management area use permit and a special management area minor permit to $165,000.

HB2178 RELATING TO CIP FOR THE BENEFIT OF THE 6TH REPRESENTATIVE DISTRICT, Capital improvement project funds for Kona, including for water source exploration and development, at NELHA.

SB1149 RELATING TO INCOME TAXATION, Exempts research done in Hawaii from State income tax purposes.

SB1793 MAKING AN APPROPRIATION FOR HAWAII'S SEAFOOD MARKETING INDUSTRY, Funds to DBEDT to develop a general seafood hazard analysis and critical control point (HACCP) plan.

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BELOW ARE BILLS THAT ARE "DEAD" FOR 1997 (Technically "alive" for the 1998 session):

HB0550 RELATING TO STATE AGRICULTURAL AND AQUACULTURAL LOANS, Freezes interest rates on certain DOA loans for 5 years for certain counties.

HBO716 RELATING TO AGRICULTURE, Declares the applensnail a pest. Directs DOA to implement an eradication program statewide basis and to educate the public.

HB0913 MAKING AN APPROPRIATION FOR ORNANENTAL FISH INDUSTRY Funds to DLNR for technology transfer and technical assistance to ornamental fish producers.

SB1036 MAKING AN APPROPRIATION FOR THE ISSUANCE OF A REQUEST FOR PROPOSAL FOR PRIVATE SECTOR PARTICIPATION IN THE DEVELOPMENT OF A MARICULTURE INDUSTRY IN HAWAII, DBEDT to prepare and issue a RFP to design a demonstration open-ocean mahimahi fish farm in Hawaiian waters and to hold a prospective bidders conference.

HB0603 RELATING TO NATURAL ENERGY, Increases membership of the Board of Directors of NELHA from 9 to I 1, with at least 2 Big Island members. Requires the Board to examine the possible privatization of NELHA and report to the legislature.

HB1490 RELATING TO FISHPONDS, Requires OHA, not DLNR, to adopt rules concerning the application and issuance of permits for the repair, strengthening, reinforcement, and maintenance of fishponds.

SBO472 MAKING AN APPROPRIATION FOR THE DEVELOPMENT OF MAHIMAHI FEED, Funds to DLNR to develop the proper feed for mahimahi in various stages of development.

SBO475 RELATING TO A GERMPLASM COLLECTION CENTER, Funds to DLNR for the construction of a germplasm collection center in Hawaii to ensure the maintenance of existing pedigree lines of specific pathogen free (SPF) shrimp stocks.

SB1200 AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS AND MAKING AN APPROPRIATION FOR THE PLANNING, DESIGN, AND CONSTRUCTION OF A RENEWABLE ENERGY AND BIOTECHNOLOGY RESEARCH FACILITY AT NELHA, Funds to DBEDT for the planning, design, and construction of a renewable energy and biotechnology research facility at NELHA. Requires matching federal funds.

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