PART I

SECTION 1. The legislature finds that there are nearly 10,000 pesticides registered for use in Hawaii. The department of agriculture is responsible for ensuring pesticides are used correctly in Hawaii. The legislature further finds that it is in the interest of the public to enhance the ability of the department of agriculture and the University of Hawaii college of tropical agriculture and human resources to respond to questions about pesticide use and make recommendations regarding pesticides for the protection of public safety and the environment. The legislature concludes that this can best be accomplished by increasing the pesticide licensing fee and amending the authorized uses of the pesticide use revolving fund.

Accordingly, the purpose of this Act is to:

(1) Increase the pesticide licensing fee;

(2) Amend authorized uses for moneys in the pesticide use revolving fund;

(3) Establish an environmental toxicologist position within the department of agriculture and a pesticide extension specialist, through a contract with the department of agriculture, within the University of Hawaii college of tropical agriculture and human resources;

(4) Appropriate funds out of the pesticide use revolving fund for specific purposes; and

(5) Remove the sunset date of Act 168, Session Laws of Hawaii 2010, thereby making permanent the removal of the requirement that the pesticide use revolving fund be used only for limited personnel costs.

PART II

SECTION 2. Section 149A-13, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The licensee shall pay [~~$75~~] $310 for each year, or fraction thereof, that the pesticide is licensed. Licensing fees may be increased or decreased from time to time by rules and may vary according to the amount or quantity of pesticide to be sold, offered for sale, or distributed. [~~The term of the license shall be for a period of up to three years. A~~] Every license shall expire on December 31 [~~of the third~~] each year. In case of renewal of license, a statement shall be required only with respect to information which is different from that furnished when the pesticide was licensed or last relicensed."

SECTION 3. Section 149A-13.5, Hawaii Revised Statutes, is amended to read as follows:

"§149A-13.5 Pesticide use revolving fund; [~~pesticide training workshops;~~] uses; training fee. (a) There is established within the treasury of the State, a pesticide use revolving fund. The fund shall be administered by the department for the purposes of this section. The fund shall consist of:

(1) Licensing and registration fees and charges collected by the department under section 149A-13(b);

(2) All fees collected by the department through the collection of training fees in accordance with subsection (c); and

(3) Funds appropriated for the pesticide subsidy program established under Act 105, Session Laws of Hawaii 2014.

(b) [Moneys in the pesticide use revolving fund shall be expended by the department to support the pesticide program's registration and licensing, certification and education, and compliance monitoring activities. The department shall also expend revolving fund moneys on the establishment of pesticide training workshops, educational programs, development of integrated pest management strategies, the pesticide subsidy program created under Act 105, Session Laws of Hawaii 2014, and other services for pesticide users such as the agricultural pest control industry, the structural pest control industry, and consumer users of pesticides, which provide pesticide instruction in areas including the collection, disposal, and recycling of pesticide containers and all other pesticide services deemed necessary by the department.] Moneys from the pesticide use revolving fund may be used for personnel, services, materials, and equipment for the purposes of this section. Moneys in the revolving fund shall be expended by the department for:

(1) Registration and technical review;

(2) Certification, including certification of restricted use pesticides or experimental use pesticides;

(3) Compliance monitoring activities;

(4) Development of an electronic data collection system for all required pesticide reporting;

(5) Personnel costs, including the hiring of necessary staff;

(6) Development of pesticide-related educational materials in conjunction with the University of Hawaii college of tropical agriculture and human resources;

(7) Demonstration trials in conjunction with the University of Hawaii college of tropical agriculture and human resources cooperative extension service agents to develop integrated management and drift management technologies; and

(8) A pesticide disposal program.

The department shall also expend revolving fund moneys on the pesticide subsidy program created under Act 105, Session Laws of Hawaii 2014, and shall partner with the University of Hawaii college of tropical agriculture and human resources to expend revolving fund moneys on the establishment of pesticide education programs and pesticide training programs and for the establishment of a position of pesticide extension specialist.

[Moneys expended by the department from the pesticide use revolving fund for training workshops, educational programs, and other services for the agricultural pest control industry, the structural pest control industry, and consumer groups shall be expended in a manner that appropriately addresses the needs of each category of pesticide user.]

(c) The department may set fees for [~~the~~] any educational [~~services~~] programs and training programs provided under this section.

(d) All interest earned on the deposit or investment of the moneys in the fund shall become a part of the fund.

[~~(e) All unobligated, unencumbered, or unexpended funds remaining in the fund in excess of $250,000 at the close of each fiscal year shall lapse to the state general fund.~~

~~(f)~~] (e) The department shall submit an annual report to the legislature on all moneys deposited into, and disbursed from, the pesticide use revolving fund. The report shall be submitted to the legislature not fewer than twenty days prior to the convening of each regular session. The report shall [~~group~~]:

(1) Group all moneys deposited into, and disbursed from, the revolving fund according to the categories established in subsections (a) to [~~(e).~~] (d);

(2) Include recommendations to improve pesticide education and regulatory processes within the State; and

(3) Include recommendations for budget reallocations for the subsequent fiscal year."

PART III

SECTION 4. (a) The department of agriculture and the University of Hawaii college of tropical agriculture and human resources shall execute a memorandum of understanding regarding the expenditure of moneys from the pesticide use revolving fund pursuant to section 149A-13.5(b), Hawaii Revised Statutes.

(b) No later than twenty days prior to the regular session of 2016, and each regular session thereafter, the department of agriculture and University of Hawaii college of tropical agriculture and human resources shall submit a report to the legislature on all moneys expended from the pesticide use revolving fund in accordance with the memorandum of understanding required under subsection (a).

SECTION 5. (a) There is established within the department of agriculture the position of an environmental toxicologist. The position shall be exempt from chapter 76, Hawaii Revised Statutes. The position shall partner with the department of health toxicologist to expand the technical capacity of the departments of agriculture and health to analyze findings and make recommendations regarding environmental and human health.

(b) There shall be a memorandum of understanding between the department of agriculture environmental toxicologist and the department of health toxicologist that defines a collaborative relationship between the two positions.

SECTION 6. There is appropriated out of the pesticide use revolving fund the sum of $200,000 or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for operating expenses and the position of environmental toxicologist established under section 5 of this Act.

The sums appropriated shall be expended by the department of agriculture exclusively for the purposes of this Act.

SECTION 7. There is established within the University of Hawaii college of tropical agriculture and human resources the position of pesticide extension specialist, to be funded by the pesticide use revolving fund through a contract with the department of agriculture. The pesticide extension specialist shall be responsible for:

(1) Developing educational materials in conjunction with the department of agriculture pursuant to section 149A-13.5(b), Hawaii Revised Statutes;

(2) Working with the environmental toxicologist established under section 5 of this Act to design experiments; and

(3) Exploring partnerships with other agencies for funding opportunities.

SECTION 8. There is appropriated out of the pesticide use revolving fund the sum of $200,000 or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for operating expenses and the position of a pesticide extension specialist established under section 7 of this Act.

The sums appropriated shall be expended by the department of agriculture exclusively for the purposes of this Act.

PART IV

SECTION 9. There is appropriated out of the pesticide use revolving fund the sum of $25,000 or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for registration and technical review.

SECTION 10. There is appropriated out of the pesticide use revolving fund the sum of $25,000 or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for certification activities, including certification of restricted use pesticides or experimental use pesticides.

SECTION 11. There is appropriated out of the pesticide use revolving fund the sum of $300,000 or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for compliance monitoring expenses.

SECTION 12. There is appropriated out of the pesticide use revolving fund the sum of $750,000 or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for the development of an electronic data collection system.

SECTION 13. There is appropriated out of the pesticide use revolving fund the sum of $400,000 or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for the development of pesticide-related educational materials.

SECTION 14. There is appropriated out of the pesticide use revolving fund the sum of $300,000 or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 to conduct demonstration trials in conjunction with the University of Hawaii college of tropical agriculture and human resources cooperative extension service agents to develop integrated management and drift management technologies.

SECTION 15. There is appropriated out of the pesticide use revolving fund the sum of $500,000 or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for the pesticide disposal program.

SECTION 16. The sums appropriated by sections 9 to 15 shall be expended by the department of agriculture exclusively for the purposes of this Act.

PART V

SECTION 17. Act 168, Session Laws of Hawaii 2010, is amended by amending section 4 to read as follows:

"SECTION 4. This Act shall take effect on July 1, 2010[~~; provided that this Act shall be repealed on June 30, 2015, and section 149A-13.5(b), Hawaii Revised Statutes, shall be reenacted in the form in which it read on June 30, 2010~~]."

PART VI

SECTION 18. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 19. This Act shall take effect on July 1, 2015; provided that sections 3 and 17 of this Act shall take effect on June 29, 2015.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	504
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII