SB 1547: BUF; SPRB; Aloun Kauai Farming; Agricultural Enterprises; Integrated Dairy

A BILL FOR AN ACT

RELATING TO SPECIAL PURPOSE REVENUE BONDS TO ASSIST ALOUN KAUAI FARMING, AN AGRICULTURAL ENTERPRISE, IN THE FINANCE, OPERATION, AND MAINTENANCE OF A PROJECT TO REVITALIZE THE DAIRY INDUSTRY.

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

     SECTION 1.  The legislature finds and declares that the issuance of special purpose revenue bonds under this Act is in the public interest and for the public health, safety, and general welfare.

     SECTION 2.  Notwithstanding the provisions of Act 182, Session Laws of Hawaii 2022, as amended by Act 262, Session Laws of Hawaii 2023, the legislature authorizes the issuance of special purpose revenue bonds to assist Aloun Kauai Farming LLC, in building facilities pursuant to part X, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist agricultural enterprises that require the allocation of the annual state ceiling under section 39B-2, Hawaii Revised Statutes, for the period July 1, 2025, through December 31, 2028.

     SECTION 3.  Pursuant to part X, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue special purpose revenue bonds in a total amount not to exceed $          , in one or more series, for the purpose of assisting Aloun Kauai Farming LLC, a Hawaii limited liability company, for the planning, design, construction, and maintenance of an integrated dairy.  The legislature hereby finds and determines that Aloun Kauai Farming LLC, constitutes a project as defined in part X, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to an agricultural enterprise.

     SECTION 4.  The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part X, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist agricultural enterprises.

     SECTION 5.  The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2030, to issue special purpose revenue bonds in whatever principal amounts the department shall determine to be necessary to refund the special purpose revenue bonds authorized in section 3 and to refund special purpose revenue bonds authorized in this section, regardless of whether the outstanding special purpose revenue bonds or refunding special purpose revenue bonds have matured or are the subject of redemption or whether the refunding special purpose revenue bonds shall be bonds for the multi-project programs described in section 3.  In making this determination, the department shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.

     SECTION 6.  The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2030.

     SECTION 7.  This Act shall take effect on July 1, 3000.

Report Title:

BUF; SPRB; Aloun Kauai Farming; Agricultural Enterprises; Integrated Dairy

Description:

Authorizes the Department of Budget and Finance to issue special purpose revenue bonds to assist Aloun Kauai Farming LLC, in the planning, design, construction, and maintenance of an integrated dairy.  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 SPECIAL PURPOSE REVENUE BONDS TO ASSIST ALOUN KAUAI FARMING, AN AGRICULTURAL ENTERPRISE, IN THE FINANCE, OPERATION, AND MAINTENANCE OF A PROJECT TO REVITALIZE THE DAIRY INDUSTRY.

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

     SECTION 1.  The legislature finds and declares that the issuance of special purpose revenue bonds under this Act is in the public interest and for the public health, safety, and general welfare.

     SECTION 2.  Notwithstanding the provisions of Act 182, Session Laws of Hawaii 2022, as amended by Act 262, Session Laws of Hawaii 2023, the legislature authorizes the issuance of special purpose revenue bonds to assist Aloun Kauai Farming LLC in building facilities pursuant to part X, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist agricultural enterprises that require the allocation of the annual state ceiling under section 39B-2, Hawaii Revised Statutes, for the period July 1, 2025, through December 31, 2028.

     SECTION 3.  Pursuant to part X, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue special purpose revenue bonds in a total amount not to exceed $          , in one or more series, for the purpose of assisting Aloun Kauai Farming LLC, a Hawaii limited liability company, for the planning, design, construction, and maintenance of an integrated dairy industry.  The legislature hereby finds and determines that Aloun Kauai Farming LLC constitutes a project as defined in part X, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to an agricultural enterprise.

     SECTION 4.  The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part X, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist agricultural enterprises.

     SECTION 5.  The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2030, to issue special purpose revenue bonds in whatever principal amounts the department shall determine to be necessary to refund the special purpose revenue bonds authorized in section 3 and to refund special purpose revenue bonds authorized in this section, regardless of whether the outstanding special purpose revenue bonds or refunding special purpose revenue bonds have matured or are the subject of redemption or whether the refunding special purpose revenue bonds shall be bonds for the multi-project programs described in section 3.  In making this determination, the department shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.

     SECTION 6.  The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2030.

     SECTION 7.  This Act shall take effect on July 1, 2050.

Report Title:

BUF; SPRB; Aloun Kauai Farming; Agricultural Enterprises; Integrated Dairy Industry

Description:

Authorizes the Department of Budget and Finance to issue special purpose revenue bonds to assist Aloun Kauai Farming, LLC, in the planning, design, construction, and maintenance of an integrated dairy industry.  Effective 7/1/2050.  (SD1)

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 Special Purpose Revenue Bonds to Assist Aloun Kauai Farming, an Agricultural Enterprise, in the Finance, Operation, and Maintenance of a Project to Revitalize the Dairy Industry.

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

     SECTION 1.  The legislature finds and declares that the issuance of special purpose revenue bonds under this Act is in the public interest and for the public health, safety, and general welfare.

     SECTION 2.  Pursuant to part X, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue special purpose revenue bonds in a total amount not to exceed $          , in one or more series, for the purpose of assisting Aloun Kauai Farming, a Hawaii corporation, for the planning, design, construction, and maintenance of an integrated dairy industry.  The legislature hereby finds and determines that Aloun Kauai Farming constitutes a project as defined in part X, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to agricultural enterprise.

     SECTION 3.  The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part X, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist agricultural enterprises.

     SECTION 4.  The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2030, to issue special purpose revenue bonds in whatever principal amounts the department shall determine to be necessary to refund the special purpose revenue bonds authorized in section 2 and to refund special purpose revenue bonds authorized in this section, regardless of whether the outstanding special purpose revenue bonds or refunding special purpose revenue bonds have matured or are the subject of redemption or whether the refunding special purpose revenue bonds shall be bonds for the multi-project programs described in section 2.  In making this determination, the department shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.

     SECTION 5.  The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2030.

     SECTION 6.  This Act shall take effect on July 1, 2025.

Report Title:

Special Purpose Revenue Bonds; BUF; Aloun Kauai Farming; Agricultural Enterprises; Integrated Dairy Industry

Description:

Authorizes the Department of Budget and Finance to issue special purpose revenue bonds to assist Aloun Kauai Farming in the planning, design, construction, and maintenance of an integrated dairy industry.

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.  1898

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 1547

      S.D. 1

      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 Finance, to which was referred S.B. No. 1547, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS TO ASSIST ALOUN KAUAI FARMING, AN AGRICULTURAL ENTERPRISE, IN THE FINANCE, OPERATION, AND MAINTENANCE OF A PROJECT TO REVITALIZE THE DAIRY INDUSTRY,"

begs leave to report as follows:

     The purpose of this measure is to authorize the issuance of special purpose revenue bonds to assist Aloun Kauai Farming LLC, in the planning, design, construction, and maintenance of an integrated dairy.

     Your Committee received testimony in support of this measure from Ulupono Initiative; Hawai‘i Farm Bureau; Aloun Farm, Inc.; and Ohana Unity Party.  Your Committee received testimony in opposition to this measure from the Libertarian Party of Hawaii and seven individuals.  Your Committee received comments on this measure from the Department of Budget and Finance.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1547, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

STAND. COM. REP. NO.  1282

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 1547

      S.D. 1

      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 S.B. No. 1547, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS TO ASSIST ALOUN KAUAI FARMING, AN AGRICULTURAL ENTERPRISE, IN THE FINANCE, OPERATION, AND MAINTENANCE OF A PROJECT TO REVITALIZE THE DAIRY INDUSTRY,"

begs leave to report as follows:

     The purpose of this measure is to authorize the issuance of special purpose revenue bonds to assist Aloun Kauai Farming LLC, in the planning, design, construction, and maintenance of an integrated dairy industry.

     Your Committee received testimony in support of this measure from the Hawai‘i Farm Bureau; The Maritime Group; Ulupono Initiative; and Aloun Farms.  Your Committee received testimony in opposition to this measure from the Surfrider Foundation, Kauai Chapter; Hawai‘i Reef and Ocean Coalition; Animal Rights Hawai‘i; and four individuals.  Your Committee received comments on this measure from the Department of Budget and Finance.

     Your Committee finds that Hawaii's dairy industry has dwindled over time, forcing the State to depend heavily on imported milk and dairy products.  This dependence increases vulnerability to market price shifts and disruptions in the supply chain, posing risks to food security and economic resilience.  This measure seeks to counter these issues by authorizing the issuance of special purpose revenue bonds to support Aloun Kauai Farming LLC, in establishing a sustainable dairy sector and expanding local dairy production.

     Your Committee has amended this measure by:

     (1)  Clarifying the purpose of the special purpose revenue bonds authorized to be issued to Aloun Kauai Farming LLC;

     (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.

     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 S.B. No. 1547, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1547, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

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

STAND. COM. REP. NO. 788

Honolulu, Hawaii

RE:    S.B. No. 1547

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 1547, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS TO ASSIST ALOUN KAUAI FARMING, AN AGRICULTURAL ENTERPRISE, IN THE FINANCE, OPERATION, AND MAINTENANCE OF A PROJECT TO REVITALIZE THE DAIRY INDUSTRY,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the issuance of special purpose revenue bonds to assist Aloun Kauai Farming, LLC in the planning, design, construction, and maintenance of an integrated dairy industry.

     Your Committee received written comments in support of this measure from the Hawaii Farm Bureau.

     Your Committee received written comments in opposition to this measure from two individuals.

     Your Committee received written comments on this measure from the Department of Budget and Finance.

     Your Committee finds that Hawaii's dairy industry has faced challenges over the years, leading to the closure of all but one commercial dairy in the State.  Your Committee notes that supporting local dairy production is critical to increasing Hawaii's food security, reducing reliance on imported dairy products, and strengthening the State's agricultural economy.  In addition, your Committee recognizes that the local dairy industry is essential for the Department of Education to meet its goal of locally sourcing thirty per cent of the food in school meals by 2030.  Your Committee believes that the issuance of special purpose revenue bonds to assist Aloun Kauai Farming with the development of an integrated dairy industry is in the public interest and for the public health, safety, and general welfare.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1547, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

STAND. COM. REP. NO. 460

Honolulu, Hawaii

RE:    S.B. No. 1547

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Agriculture and Environment, to which was referred S.B. No. 1547 entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS TO ASSIST ALOUN KAUAI FARMING, AN AGRICULTURAL ENTERPRISE, IN THE FINANCE, OPERATION, AND MAINTENANCE OF A PROJECT TO REVITALIZE THE DAIRY INDUSTRY,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the issuance of special purpose revenue bonds to assist Aloun Kauai Farming in the planning, design, construction, and maintenance of an integrated dairy industry.

     Your Committee received testimony in support of this measure from Aloun Farms and the Hawaiʻi Farm Bureau.

     Your Committee received testimony in opposition to this measure from the Hawaiʻi Reef and Ocean Coalition and four individuals.

     Your Committee received comments on this measure from the Department of the Attorney General and Department of Budget and Finance.

     Your Committee finds that this measure supports the local food industry and furthers the State's goal of food self‑sufficiency.  Your Committee notes that Hawaii's dairy industry, which previously had over one hundred fifty dairies, has been reduced to one commercial dairy on Hawaii Island, leaving the State heavily dependent on imported milk and dairy products.  Your Committee believes that the issuance of special purpose revenue bonds under this measure is in the public interest and for the public health, safety, and general welfare.

     Your Committee acknowledges the concerns raised by the Department of the Attorney General that the issuance of special purpose revenue bonds as proposed in this measure violates Act 182, Session Laws of Hawaii 2022, as amended by Act 262, Session Laws of Hawaii 2023, which, in part, prohibits the authorization of special purpose revenue bonds that require allocations from the State's private activity bond volume cap ceiling through December 31, 2028.  Amendments to this measure are therefore necessary to expressly insert a carve out to this prohibition.

     Your Committee has amended this measure by:

     (1)  Inserting language to specify that the Legislature authorizes the issuance of special purpose revenue bonds that require allocation from the State's annual private activity bond volume cap ceiling, notwithstanding the provisions of Act 182, Session Laws of Hawaii 2022, as amended by Act 262, Session Laws of Hawaii 2023;

     (2)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1547, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1547, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Agriculture and Environment,