HB 912: RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION.

A BILL FOR AN ACT

RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION.

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

     SECTION 1.  The legislature finds that the Waiahole water system, also referred to as the Waiahole ditch irrigation system, was constructed between 1912 and 1916 to irrigate sugarcane fields on the western side of Oahu and consists of a twenty-six-mile-long transmission system of ditches, tunnels, siphons, and reservoirs that provides a source of irrigation water to local farmers from the windward side of Oahu.  The system diverts approximately twenty-seven million gallons per day from the windward to the leeward side of Oahu.

     The legislature further finds that, in 1998, the agribusiness development corporation was authorized to acquire, administer, operate, maintain, and improve the Waiahole water system to protect a vital natural resource and to ensure the expansion of diversified agriculture in the State.  As part of the acquisition, the agribusiness development corporation was required to reimburse the State for part of the acquisition costs.  This continued debt, however, burdens the corporation and hinders its ability to maintain and improve the efficiency of the system.

     Accordingly, the purpose of this Act is to appropriate funds to the agribusiness development corporation to offset the financial burden of reimbursement of debt service.

     SECTION 2.  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 2025-2026 to be deposited into the Waiahole water system revolving fund.

     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 2025-2026 and the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the reimbursement to the state general fund of debt service on reimbursable general obligation bonds, including ongoing expenses related to the issuance of the bonds, for the Waiahole water system.

     The sums appropriated shall be expended by the agribusiness development corporation for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

Agribusiness Development Corporation; Waiahole Water System; Debt; Appropriation

Description:

Appropriates funds to offset the debt for the Waiahole Water System.  Effective 7/1/3000.  (HD1)

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

A BILL FOR AN ACT

relating to THE agribusiness development corporation.

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

     SECTION 1.  The legislature finds that the Waiahole water system, also referred to as the Waiāhole ditch irrigation system, was constructed between 1912 and 1916 to irrigate sugarcane fields on the western side of Oʻahu and consists of a twenty-six-mile-long transmission system of ditches, tunnels, siphons, and reservoirs that provides a source of irrigation water to local farmers from the windward side of Oʻahu.  The system diverts approximately twenty-seven million gallons per day from the windward to the leeward side of Oʻahu.

     The legislature further finds that, in 1998, the agribusiness development corporation was authorized to acquire, administer, operate, maintain, and improve the Waiahole water system to protect a vital natural resource and to ensure the expansion of diversified agriculture in the State.  As part of the acquisition, the agribusiness development corporation was required to reimburse the State for part of the acquisition costs.  This continued debt, however, burdens the corporation and hinders its ability to maintain and improve the efficiency of the system.

     Accordingly, the purpose of this Act is to appropriate funds to the agribusiness development corporation to offset the financial burden of reimbursement of debt service.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $4,411,426.49 or so much thereof as may be necessary for fiscal year 2025-2026 to be deposited into the Waiahole water system revolving fund.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $426,370 or so much thereof as may be necessary for fiscal year 2025-2026 and the sum of $427,172 or so much thereof as may be necessary for fiscal year 2026-2027 for the reimbursement to the state general fund of debt service on reimbursable general obligation bonds, including ongoing expenses related to the issuance of the bonds.

     The sums appropriated shall be expended by the agribusiness development corporation for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2025.

Report Title:

Agribusiness Development Corporation; Waiahole Water System; Debt; Appropriation

Description:

Appropriates funds to offset the debt for the Waiahole Water System.

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

STAND. COM. REP. NO.  81

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 912

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Agriculture & Food Systems, to which was referred H.B. No. 912 entitled:

"A BILL FOR AN ACT RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION,"

begs leave to report as follows:

     The purpose of this measure is to appropriate funds to the Agribusiness Development Corporation to offset the financial burden of reimbursement of debt service for the Waiahole water system.

     Your Committee received testimony in support of this measure from the Agribusiness Development Corporation; Land Use Research Foundation of Hawaii; Hawai‘i Farmers Union; Kunia Village Title Holding Corporation; Hawai‘i Farm Bureau; Hawaii Agriculture Research Center; Bayer; Larry Jefts Farms, LLC; and four individuals.

     Your Committee finds that the Waiahole water system is a vital component of Hawaii's agricultural infrastructure, providing a dependable water source for thousands of acres of productive farmland on Oahu.  Originally constructed to support sugarcane plantations, the system now plays a crucial role in sustaining diversified agriculture, which is essential to the State's long-term food security and economic resilience.  However, the financial burden of repaying acquisition costs has strained the Agribusiness Development Corporation, limiting its ability to maintain and improve the system.  This measure addresses this issue by appropriating funds to offset the remaining debt, ensuring that farmers and ranchers who rely on this irrigation system can continue to operate without excessive financial strain.

     Your Committee has amended this measure by:

     (1)  Changing the appropriations to unspecified amounts;

     (2)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     Your Committee respectfully respects your Committee on Finance, should it deliberate on this measure, to consider an appropriation amount of $4,411,426.49 for fiscal year 2025-2026 to be deposited into the Waiahole Water System Revolving Fund; and $426,370 for fiscal year 2025-2026 and $427,172 for fiscal year 2026-2027 for the reimbursement to the state general fund of debt service on reimbursable general obligation bonds, including ongoing expenses related to the issuance of the bonds.

     As affirmed by the record of votes of the members of your Committee on Agriculture & Food Systems that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 912, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 912, H.D. 1, and be referred to your Committee on Water & Land.

Respectfully submitted on behalf of the members of the Committee on Agriculture & Food Systems,