Bill Text: HI HB1511 | 2019 | Regular Session | Introduced
Bill Title: Relating To The Community-based Economic Development Advisory Council.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-02-15 - Report adopted. referred to the committee(s) on FIN as amended in HD 2 with none voting aye with reservations; none voting no (0) and Representative(s) Aquino, DeCoite, Nakamura, Quinlan, Thielen excused (5). [HB1511 Detail]
Download: Hawaii-2019-HB1511-Introduced.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1511 |
THIRTIETH LEGISLATURE, 2019 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the community-based economic development advisory council.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that private for-profit
start-up agricultural businesses encounter many impediments in acquiring financial
assistance for infrastructure including fences, water delivery systems, access
roads, equipment, and agriculture buildings.
The
legislature further finds that the community-based economic development
advisory council, within the department of business, economic development, and
tourism, is best suited to evaluate the available means and barriers to obtain loans
and grants to fund infrastructure projects for private for-profit start-up
agricultural businesses. The department
of business, economic development, and tourism works with federal agencies, counties,
and other state agencies to assist in the development of agriculture in Hawaii.
According
to the 2018 Community Business Economic Development Program Annual Report, the community
business economic development revolving fund program continued its partnership
with the department of agriculture’s micro-loan
fund program. In addition, in fiscal year 2018, the community-based economic
development technical and financial assistance program provided business
training and informational workshops that assisted many community-based
organizations, cooperatives, and small businesses, including the co-sponsorship
of the annual Hawaii Small Business Fair, sponsorship of the Native Hawaiian Small
Business Resources Fair held in conjunction with the Council for Native
Hawaiian Advancement’s annual convention,
and other outreach initiatives on all the major islands.
The
legislature further finds that because start-ups are not established businesses
with a financial track record, access to funds for infrastructure projects poses
a major impediment to their development and economic growth.
The legislature
further finds that it is time to evaluate how the State can assist private
for-profit start-up agricultural businesses in funding their infrastructure
projects.
The purpose
of this Act is to direct the community-based economic development advisory
council to evaluate the available means and barriers to accessing funding
sources by private for-profit start-up agricultural businesses to finance their
infrastructure projects.
SECTION 2.
(a) The community-based
economic development advisory council shall retain professional research and
analysis services to evaluate the means and barriers to accessing funding
sources by private for-profit start-up agricultural businesses to finance their
infrastructure projects. The council
shall have oversight over the evaluation process.
(b) The
evaluation shall include:
(1) An analysis by the
community-based economic development advisory council of the definitions of "small
business" in Hawaii according to the federal Small Business Administration,
Hawaii Revised Statutes, and county ordinances and the impact of these
definitions, if any, on the acquisition of funds for infrastructure projects;
(2) An analysis of the current requirements and
qualifications, and their impact, for loans and grants to private for-profit
start-up agricultural businesses for the purpose of financing infrastructure
projects;
(3) An analysis
of current incentives for lenders, such as tax credits, and of potential
economically feasible incentives including a tax credit that:
(A) May be transferred or sold;
(B) May be awarded to a private, for-profit, startup agricultural business organized as any form of business entity;
(C) Shall be available only to a taxpayer practicing farming and not to a taxpayer that is an owner of real property that does not itself practice farming;
(D) Considers the size of the farming operation based on annual revenues, property size, intensity of farming activity, and other relevant characteristics; and
(E) Includes a certification process and technical requirements to determine whether a taxpayer practices farming;
(4) Research
on the inequalities in the allocation of available funds, such as urban farming
versus rural farming. The research shall
also include an assessment of the effectiveness and relevancy of specifying
agricultural competence as a condition to qualify for infrastructure financing;
(5) Critical
policy language that recognizes and acknowledges the situation encountered by
private for-profit start-up agricultural businesses in financing infrastructure
projects; and
(6) Any other matters relevant to the purposes of this Act.
(c) For purposes of this
Act, "infrastructure" means agriculturally related fences, water
delivery systems, access roads, equipment, and buildings. "Infrastructure" shall not include
housing or the purchasing or leasing of land.
SECTION
3. The community-based economic development advisory council shall
report its findings and recommendation, including proposed legislation, based
on the evaluation conducted by the professional research and analysis services
retained by the council, to the legislature. A preliminary report on the
progress of the evaluation shall be submitted to the legislature no later than thirty
days prior to the convening of the regular session of 2020 and a final report
shall be submitted by June 30, 2020.
SECTION 4.
There is appropriated out of the general revenues of the State of Hawaii
the sum of $60,000 or so much thereof as may be necessary for fiscal year
2019-2020 for professional research and analysis services to perform the
evaluation pursuant to section 2 of this Act.
The sum appropriated shall be expended by
the department of business, economic development, and tourism for the purposes
of this Act.
SECTION 5. This Act shall take effect on July 1, 2019.
INTRODUCED BY: |
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Report Title:
Agricultural Businesses; Infrastructure; Study; Appropriation
Description:
Requires the Community-Based Economic Development Advisory Council to retain and oversee professional research and analysis services for the evaluation of the means or barriers for private for-profit start-up agricultural businesses to acquire funds for agriculture infrastructure projects.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.