1998 Bills and Resolutions

State of Hawaii
Department of Land and Natural Resources
Aquaculture Development Program
1177 Alakea Street, Room 400
Honolulu, HI 96813
Email:aquacult@aloha.com
Phone: 808 587-0030
Fax: 808 587-0033

May 29, 1998

MEMORANDUM TO: Hawaii's Aquaculture Community
FROM: Yara L. Lamadrid-Rose, Information Specialist
SUBJECT: Summary of Aquaculture-Related Bills and Resolutions Passed in the 1998 Legislature

The 1998 Legislative session was the most important we have ever seen in terms of the future of Hawaii aquaculture. We want to thank you for your strong support of aquaculture and your help in keeping a lead agency and development function in Stat e government. Thanks to strong lobbying, efforts by the industry, ADP continues to exist and can be moved from DLNR to the Department of Agriculture (DOA), when the Governor signs HB3625. Diversified agriculture and aquaculture will then be under one agency, DOA.

Unfortunately, ADP took a major hit in the final conference on the budget -- four staff positions must be terminated. Considering we started off in the session with abolishment of the Program, this certainly is a big improvement. However, we vie w all staff positions as essential to maintaining the level of service needed by the industry and community at large, so this is also a big disappointment. Because of the severe cutback, ADP is in the process of rethinking the Program activities and organ ization to determine how to best serve the aquaculture industry with diminished resources.

The ADP abolishment issue aside, it was a very busy session for aquaculture. For your information, a summary of aquaculture and related bills and resolutions that passed this legislative session is enclosed. Please note changes in the final versi ons from previous versions of these bills/resolutions. The summaries are divided into the following categories for easier reading:

MEASURE (bill/resolution number, including amendments)
TITLE
INTRODCR (who introduced the bill)
DESCRIPT (brief description)
STATUS (where it is in the process)

A resolution is passed once it is adopted by the House and/or Senate. Bills become law with the Governor's signature (or without the Governor's signature, if it is not vetoed). Also included is our brief assessment of the possible aquaculture impacts of these bills/resolutions.

Bills of particular interest that passed the legislature include: HB3625, which allows transfer of ADP and the Hawaii Aquaculture Advisory Council (HAAC) to DOA from DLNR and makes DOA more proactive for the agriculture industry; SB2025, which wi ll streamline the new species importation process and moving species between lists in DOA; SB2026, which corrects an oversight in the tax law to allow those who receive Small Business Innovation Research (SBIR) grants to get a general excise tax (GET) exe mption for the award. In addition, HCR114, which requests DLNR to issue a permit to UH's Sea Grant for a pilot demonstration open ocean aquaculture project, also passed the legislature.

Thank you again to all of you who took time out of your busy schedules to submit testimonies and lobby on behalf of ADP or bills/resolutions of interest to the industry. A special thank you to the Hawaii Aquaculture Association (HAA) and its Presi dent, Ron Weldenbach, for all their hard work to support aquaculture in the legislature. If you have any questions or comments on these or any other items, please call me at 587-0030, FAX 587-0033. The Neighbor Island toll-free number by island: Kauai, 274-3141, Maui, 984-2400. Big Island, 974-4000; and Molokai/Lanai, 1-(800)-468-4644.

Aquaculture impacts: Reduces language requirements for aquaculture and agriculture property signs to "Private Property." Unfortunately, the conference committee eliminated the increased penalties for theft and trespass provisions from the bill.

MEASURE......HD3625 HD3 CD1 (CCR 154)
TITLE..............RELATING TO GOVERNMENT REORGANIZATION
INTRODCR.....Jones M (586-8460)
KEYWORDS...DIVERSIFIED AGRICULTURE + DOA + AQUACULTURE
DESCRIPT......Moves the duties and functions of the aquaculture program from DLNR to DOA. Also moves the Hawaii Aquaculture Advisory Council (HAAC) from DLNR to DOA- Requires DOA to identify problems related to agriculture, the appropriate State agencies/departments needed to solve the problem, and.the necessary assistance needed until the problem is resolved. The board of directors of the agribusiness corporation to consist of the members of the board of agriculture. Amends the definition of public lands by excluding all lands in which the Agribusiness Development Corporation holds title. STATUS.........Received by the Governor -- PENDING FURTHER ACTION

Aquaculture impacts: Makes DOA more proactive and moves ADP and HAAC to DOA, making DOA the lead agency for diversified agriculture and aquaculture. At this time, it is not known when the move will occur and where the Program will be placed in DOA.

MEASURE......HCR114 1998 HD1 (HSCR 1O80-98)
TITLE..............REQUESTING DLNR TO ISSUE A PERMIT FOR A PILOT DEMONSTRATION OPEN OCEAN AQUACULTURE PROJECT TO THE UNIVERSITY OF HAWAII
INTRODCR.....Tarnas D (586-8510)
KEYWORDS...AQUACULTURE + FISHING + DLNR + UNIVERSITY OF HAWAII
DESCRIPT......The Sea Grant College Program of UH is requested to proceed with its offshore aquaculture demonstration projects, with DLNR issuing, the necessary lease or permit for submerged lands for the offshore aquaculture demonstration project. DOH is requested to encourage UH by allowing the projects to take place subject only to the submittal of a report on any significant chances in water quality or environmental impacts associated with production of fish in an offshore cage system.
STATUS.........Adopted by House and Senate

Aquaculture impacts: Could facilitate the demonstration open ocean aquaculture in Hawaiian waters. Would also allow a long-term lease for the project if required.

MEASURE......SB2025 SD2 HD2 (HSCR 1222-98)
TITLE..............RELATING TO PLANT AND NON-DOMESTIC ANIMAL QUARANTINE
INTRODCR.....Bunda R (586-6090)
KEYWORDS...AGRICULTURE + QUARANTINE + ANIMALS + DOA
DESCRIPT......Exempts the adoption of lists of conditionally approved, restricted and prohibited animals, microorganisms and plants from public notice and hearing requirements. Allows DOA to adopt rules to make additions to or deletions from the lists, provided that methods are established to obtain public input and to notify the public as to any additions or deletions.
STATUS.........Received by the Governor -- PENDING FURTHER ACTION

Aquaculture impacts: Could result in streamlining the process to import new species, as well as th moving of species between lists.

MEASURE......SB2026 SD1 HD1 (HSCR 1277-98)
TITLE..............RELATING TO SMALL BUSINESS INNOVATION RESEARCH GRANTS
INTRODCR.....Bunda P, (586-6090)
KEYWORDS...GENERAL EXCISE TAX + TAX EXENQTIONS + SMALL BUSINESS
DESCRIPT......Provides a general excise tax (GET) exemption for grants received under high technology research and development loans and grants provisions which are given to a business that receives a federal Small Business Innovation Research (SBIR) phase I award.
STATUS......Received by the Governor -- PENDING FURTHER ACTION

Aquaculture impacts: Fixes an oversight in the law, will give a GET exemption to SBIR awards including aquaculture.

MEASURE......SB2803 SD2 HD2 CD1 (CCR 50)
TITLE..............RELATING TO HAWAII SMALL BUSINESS REGULATORY FLEXIBILITY ACT
INTRODCR.....Mizuguchi N (BR) (586-6870)
KEYWORDS...SMALL BUSINESS + DBEDT + GOVERNMENT FISCAL POLICIES
DESCRIPT......Agencies are required to determine effects of proposed rule on small business, and find less restrictive alternatives. Requires an agency to consider creative, innovative, or fle xible methods of compliance for small business and to prepare a small business impact statement to be submitted with proposed rules. Permits an advisory committee on small business in every state department or county whose rules affect small business activities. Requires an agency having rules that affect small business to submit a list of those rules to the small business regulatory review board. Requires any penalties or fines against small businesses to be waived or reduced if the small business corrects the violation within 30 days after receipt of a notice of violation or citation, if the violation was unintentional or the result of an excusable misunderstanding of an agency's interpretation of a rule.
STATUS.........Received by the Governor -- PENDING FURTHER ACTION

Aquaculture impacts: Could result in the streamlining of some State regulations that are an impediment to aquabusinesses.

HB1699 HD2 SD 1
RELATING TO THE HAWAII CAPITAL LOAN PROGRAM, Allows DBEDT to guarantee loans made to a qualified small business by a private lender who is unable to otherwise lend the applicant sufficient funds at reasonable rates.

HB2533 HD1 SD2 CD 1
RELATING TO QUARANTINE, Increases penalties/fines for any person or organization who owns or intentionally transports, possesses, transfers or imports any prohibited or restricted plant, animal or microorganism without a permit for propagation, sale, or release.

HB2878 HD1 SD1 CD1
RELATING TO AQUATIC RESOURCES, Allows DLNR to adopt, add, delete, and make revisions to rules relating to fishing. Repeals the use of nets made with stretched mesh of less than 2 inches by all persons including pond owners or operators. Authorizes DLNR to issue permits for taking coral and rock with marine life attached

HB3443 HD1 SD2 CD1
RELATING TO LOANS, Requires DOA to make loans from the agriculture loan revolving fund to qualified farmers in economically depressed areas. Establishes an economic development loan special fund with funds from economic development loans available to DBEDT and DOA. Allows DBEDT to contract with financial institutions for servicing or administering loans for disaster relief, capital loan programs, and aquaculture loan programs.

HB3457 HD2 SD2 CD1
RELATING TO THE WEST HAWAII REGIONAL FISHERY MANAGEMENT AREA, Establishes the West Hawaii regional fishery management area to improve the aquatic resources management on the Big Island's west coast from Ka Lae Kau (South Point) to Upolu Point, North Kohala. Requires DLNR to designate at least 30 percent of coastal waters as fish replenishment areas which prohibit the collection of aquarium fish and to establish fish reserve areas where no fishing of reef dwelling fish is allowed.

HCR046 HD1
REQUESTING AN ACTION PLAN TO PROMOTE, HAWAII-GROWN AND HAWAII-MADE AGRICULTURAL PRODUCTS, HVCB (Hawaii Visitor and Convention Bureau) and HHA (Hawaii Hotel Association), in cooperation with DOA, DBEDT, the Hawaii Farm Bureau Federation (BFBF), the Agribusiness Development Corporation (ADC), and other agricultural commodity groups, are requested to promote and market Hawaii grown and Hawaii made agricultural products.

HCR202 SD1
REQUESTING THE CHAIRPERSON OF DOA TO CONVENE A SERIES OF MEETINGS TO ASSESS AND RECOMMEND SOLUTIONS REGARDING LAND TENURE AND FINANCING TO ASSIST HAWAII'S AGRICULTURAL DEVELOPMENT, The meetings would assess and develop recommendations regardin g land tenure and flexible agricultural financing, to assist diversified agriculture development; review and recommend statutory or administrative rule changes regarding existing State and agricultural loan and lease programs; and all state agencies, major landowners, and financial institutions are requested to cooperatively assist in the effort to promote the development of diversified agriculture

SB1597 SD1 HD2 CD1
RELATING TO AQUATIC RESOURCES PENALTIES, Authorizes DLNR to set, charge, and collect, or bring legal action to recover, administrative fines, and costs. Establishes administrative fines for 1st, 2nd, and 3rd or subsequent violations for violations regarding aquatic resources provisions.

SB2204 SD2 HD2 CD1
RELATING TO REGULATORY PROCESSES, Requires all issuing agencies to establish by rule, a maximum period of time to grant or deny a business or development related permit, license, or approval, provided that the application is not subject to federal law.

HB1332 HD2 SD2 CD1
RELATING TO THE STATE WATER CODE, Requires DOA to prepare a state agricultural water use and development plan in accordance with irrigation water and water and land development requirements, including a master irrigation inventory plan .

HB2985 HD1 SD1 CD1
RELATING TO IRRIGATION AND WATER UTILIZATION PROJECTS, Authorizes DOA to contract services with the private sector for operation or maintenance of project facilities.

HB2990 HD2 SD2 CD1
RELATING TO AGRICULTURE, Establishes the Waiahole water system revolving fund, administered by the Agribusiness Development Corporation (ADC) to acquire, plan, design, improve, construct, equip, fumish, administer, operate, and maintain the Waiahole water system. Authorizes the issuance of reimbursable general obligation bonds. ADC to obtain commitments from landowners in the leeward and central districts of Oahu that agricultural leases shall be for 20 or more years, and shall not be amended or revoked for non-agricultural uses.

SB2769
RELATING TO IRRIGATION PROJECTS, Requires DOA to administer the planning, development, and management of the agricultural park program; and construct, operate, and maintain the state irrigation water systems. (Act 67)

HB2874
RELATING TO OCEAN LEASING, Could have made commercial open ocean aquaculture a reality in Hawaii.

HB3230
RELATING TO AQUACULTURE, Funding to DLNR for technology transfer and technical assistance to new and existing ornamental fish producers.

HB3291
RELATING TO HAWAIIAN FISH PONDS, Adds that DLNR may investigate traditional, or subsistence management practices for government owned Hawaiian fish ponds.

HCR045
REQUESTING DOH AND DOA TO DEVELOP APPROPRIATE MEASURES TO IDENTIFY AND ELIMINATE THE REGULATORY IMPEDIMENTS RESTRICTING THE DEVELOPMENT OF THE AQUACULTURE INDUSTRY IN HAWAII

HCR086
REQUESTING THE ESTABLISHMENT OF A TASK FORCE ON IMPORTATION OF MICROORGANISMS FOR RESEARCH AND COMMERCIAL USE

SB3223
RELATING TO AGRICULTURAL PARKS, Requires DOA to set aside 1 lot within each of its existing and future agricultural park complexes for the processing, marketing and displaying of agricultural crops or commodities.