REPORT TITLE:
Kauai Sugar Industry


DESCRIPTION:
Appropriates funds to finance the major sugar cane operations on
the island of Kauai to encourage the continuation of sugar
production on that island.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1632
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 3
TWENTIETH LEGISLATURE, 2000                                S.D. 1
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO AGRICULTURE.



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

 1      SECTION 1.  The legislature finds that the sugar cane
 
 2 industry remains as a vital component of the island of Kauai's
 
 3 economic base.  The industry employs approximately seven hundred
 
 4 workers and uses about twenty-five thousand acres of land for
 
 5 cultivation on Kauai.  As a user of large tracts of land and a
 
 6 provider of many jobs, the sugar cane industry is without
 
 7 parallel, especially to neighbor island rural communities as on
 
 8 Kauai.
 
 9      The legislature further finds that the sugar industry on
 
10 Kauai is struggling to survive and in urgent need of financial
 
11 assistance to continue operations.  Past experience with sugar
 
12 cane company shutdowns, such as in Hamakua, has shown that the
 
13 closures have come at a great cost, both financially and
 
14 socially, to the persons employed and to the State in general.
 
15      The legislature further finds that due to the emergency
 
16 situation of the sugar industry on Kauai and because of the large
 
17 scale of operations, additional funding is needed for the
 
18 agricultural loan revolving fund to enable the department of
 
19 agriculture to carry out appropriate loan programs.
 

 
Page 2                                                     1632
                                     H.B. NO.           H.D. 3
                                                        S.D. 1
                                                        


 1      The purpose of this Act is to appropriate the sum of
 
 2 $2,500,000 in fiscal year 2000-2001 to be deposited into the
 
 3 agricultural loan revolving fund, to finance the major sugar cane
 
 4 operations on Kauai in order to encourage continuation of sugar
 
 5 production on that island.  An additional sum of $2,500,000 will
 
 6 be earmarked from the agricultural loan revolving fund for this
 
 7 Act.
 
 8      SECTION 2.  There is appropriated out of the general
 
 9 revenues of the State of Hawaii the sum of $2,500,000, or so much
 
10 thereof as may be necessary for fiscal year 2000-2001, to be
 
11 deposited into the agriculture loan revolving fund to finance the
 
12 major sugar cane operations on the island of Kauai in order to
 
13 encourage the continuation of sugar production on that island.
 
14 The sum appropriated shall be expended by the department of
 
15 agriculture for the purposes of this Act.
 
16      SECTION 3.  There is appropriated out of the agriculture
 
17 loan revolving fund the sum of $2,500,000, or so much thereof as
 
18 may be necessary for fiscal year 2000-2001, to finance the major
 
19 sugar cane operations on the island of Kauai in order to
 
20 encourage the continuation of sugar production on that island.
 
21 The moneys appropriated by this section shall be in addition to
 
22 the moneys appropriated into the agriculture loan revolving fund
 

 
 
 
Page 3                                                     1632
                                     H.B. NO.           H.D. 3
                                                        S.D. 1
                                                        


 1 by section 2 of this Act.  The sum appropriated shall be expended
 
 2 by the department of agriculture for the purposes of this Act.
 
 3      SECTION 4.  Notwithstanding chapter 155, Hawaii Revised
 
 4 Statutes, or any other law to the contrary, the department of
 
 5 agriculture may make direct loans to qualified farmers under
 
 6 section 155-8, Hawaii Revised Statutes, in the aggregate amount
 
 7 of $5,000,000 from the agriculture loan revolving fund, to
 
 8 finance the major sugar cane operations on the island of Kauai in
 
 9 order to encourage the continuation of sugar production on that
 
10 island.  The board of agriculture may waive any statutory
 
11 requirement specified under chapter 155, Hawaii Revised Statutes,
 
12 as deemed necessary to effectuate this Act, with the exception of
 
13 the following conditions:
 
14      (1)  Interest charged shall not be less than three per cent
 
15           per year simple interest;
 
16      (2)  The term of the loan shall not exceed ten years; and
 
17      (3)  Collateral shall consist of a first lien position in
 
18           rolling stocks and crops and the pledging of other
 
19           assets as deemed reasonable by the board of
 
20           agriculture.
 
21 The credit elsewhere requirement shall be waived.
 
22      SECTION 5.  This Act shall take effect on July 1, 2000.