Hawaii Bonds for Agricultural Enterprises, Amendment 2 (2014)

Amendment 2 Type Constitutional amendment Origin Hawaii Legislature Topic Bonds Status Approved a

2014 measures November 4 Amendment 1 a Amendment 2 a Amendment 3 d Amendment 4 d Amendment 5 a Polls Endorsements Expenditures Local measures

The Hawaii Bonds for Agricultural Enterprises, Amendment 2 was on the November 4, 2014 ballot in Hawaii as a legislatively referred constitutional amendment, where it was approved. The measure empowered the legislature to issue special purpose revenue bonds in order to offer loans and financial assistance to agricultural enterprises.

Prior to the passing of this measure, agricultural enterprises serving important agricultural lands could receive loans and assistance via bonds, but the proposed amendment made any agricultural enterprise eligible to receive such.

Supporters said the amendment would help expand, diversify and ensure local and sustainable practices in the state’s agriculture by offering loans to enterprises, while opponents argued that large agribusinesses would be the primary beneficiaries, not small, local and sustainable farms.

The amendment was introduced into the Hawaii Legislature as House Bill No. 748.

In Hawaii, an amendment must win a majority of all votes cast on that particular proposal and a majority of the vote of everyone voting in that election. This is known as a double majority.

Election results

Hawaii Amendment 2
Result		Votes	Percentage
a Yes		185,531	50.20%
No		152,222	41.19%

Due to Hawaii's double majority requirements, the amount of total votes in the overall election are used to calculate the percent of "yes" and "no" votes. This may result in the percents for the "yes" and "no" votes adding up to less than 100 percent.

Election results via: Hawaii Secretary of State

Text of measure

Ballot title

The text appeared on the ballot as follows:

“

Shall the State be authorized to issue special purpose revenue bonds and use the proceeds from the bonds to assist agricultural enterprises on any type of land, rather than only important agricultural lands?

”

Constitutional changes

See also: Article VII, Hawaii Constitution

The measure amended Section 12 of Article VII of the Hawaii Constitution.

Note: Hover over the text and scroll to see the full text.

Section 12. For the purposes of this article:

1. The term "bonds" shall include bonds, notes and other instruments of indebtedness.

2. The term "general obligation bonds" means all bonds for the payment of the principal and interest of which the full faith and credit of the State or a political subdivision are pledged and, unless otherwise indicated, includes reimbursable general obligation bonds.

3. The term "net revenues" or "net user tax receipts" means the revenues or receipts derived from:

a. A public undertaking, improvement or system remaining after the costs of operation, maintenance and repair of the public undertaking, improvement or system, and the required payments of the principal of and interest on all revenue bonds issued therefor, have been made; or

b. Any payments or return on security under a loan program or a loan thereunder, after the costs of operation and administration of the loan program, and the required payments of the principal of and interest on all revenue bonds issued therefor, have been made.

4. The term "person" means an individual, firm, partnership, corporation, association, cooperative or other legal entity, governmental body or agency, board, bureau or other instrumentality thereof, or any combination of the foregoing.

5. The term "rates, rentals and charges" means all revenues and other moneys derived from the operation or lease of a public undertaking, improvement or system, or derived from any payments or return on security under a loan program or a loan thereunder; provided that insurance premium payments, assessments and surcharges, shall constitute rates, rentals and charges of a state property insurance program.

6. The term "reimbursable general obligation bonds" means general obligation bonds issued for a public undertaking, improvement or system from which revenues, or user taxes, or a combination of both, may be derived for the payment of the principal and interest as reimbursement to the general fund and for which reimbursement is required by law, and, in the case of general obligation bonds issued by the State for a political subdivision, general obligation bonds for which the payment of the principal and interest as reimbursement to the general fund is required by law to be made from the revenue of the political subdivision

7. The term "revenue bonds" means all bonds payable from the revenues, or user taxes, or any combination of both, of a public undertaking, improvement, system or loan program and any loan made thereunder and secured as may be provided by law, including a loan program to provide loans to a state property insurance program providing hurricane insurance coverage to the general public.

8. The term "special purpose revenue bonds" means all bonds payable from rental or other payments made to an issuer by a person pursuant to contract and secured as may be provided by law.

9. The term "user tax" means a tax on goods or services or on the consumption thereof, the receipts of which are substantially derived from the consumption, use or sale of goods and services in the utilization of the functions or services furnished by a public undertaking, improvement or system; provided that mortgage recording taxes shall constitute user taxes of a state property insurance program.

The legislature, by a majority vote of the members to which each house is entitled, shall authorize the issuance of all general obligation bonds, bonds issued under special improvement statutes and revenue bonds issued by or on behalf of the State and shall prescribe by general law the manner and procedure for such issuance. The legislature by general law shall authorize political subdivisions to issue general obligation bonds, bonds issued under special improvement statutes and revenue bonds and shall prescribe the manner and procedure for such issuance. All such bonds issued by or on behalf of a political subdivision shall be authorized by the governing body of such political subdivision.

Special purpose revenue bonds shall only be authorized or issued to finance facilities of or for, or to loan the proceeds of such bonds to assist:

1. Manufacturing, processing[,] or industrial enterprises;

2. Utilities serving the general public;

3. Health care facilities provided to the general public by not-for-profit corporations;

4. Early childhood education and care facilities provided to the general public by not-for-profit corporations;

5. Low and moderate income government housing programs;

6. Not-for-profit private nonsectarian and sectarian elementary schools, secondary schools, colleges and universities; or

7. Agricultural enterprises serving important agricultural lands,

The legislature, by a two-thirds vote of the members to which each house is entitled, may enact enabling legislation for the issuance of special purpose revenue bonds separately for each special purpose entity, and, by a two-thirds vote of the members to which each house is entitled and by separate legislative bill, may authorize the State to issue special purpose revenue bonds for each single project or multi-project program of each special purpose entity; provided that the issuance of such special purpose revenue bonds is found to be in the public interest by the legislature; and provided further that the State may combine into a single issue of special purpose revenue bonds two or more proposed issues of special purpose revenue bonds to assist not-for-profit private nonsectarian and sectarian elementary schools, secondary schools, colleges, and universities, and agricultural enterprises, separately authorized as aforesaid, in the total amount of not exceeding the aggregate of the proposed separate issues of special purpose revenue bonds. The legislature may enact enabling legislation to authorize political subdivisions to issue special purpose revenue bonds. If so authorized, a political subdivision by a two-thirds vote of the members to which its governing body is entitled and by separate ordinance may authorize the issuance of special purpose revenue bonds for each single project or multi-project program of each special purpose entity; provided that the issuance of such special purpose revenue bonds is found to be in the public interest by the governing body of the political subdivision. No special purpose revenue bonds shall be secured directly or indirectly by the general credit of the issuer or by any revenues or taxes of the issuer other than receipts derived from payments by a person or persons under contract or from any security for such contract or contracts or special purpose revenue bonds and no moneys other than such receipts shall be applied to the payment thereof. The governor shall provide the legislature in November of each year with a report on the cumulative amount of all special purpose revenue bonds authorized and issued, and such other information as may be necessary.

Background

Amendment 5 of 2006

See also: Hawaii Agricultural Enterprise Assistance Act, Amendment 5 (2006)

In 2006, Hawaiians approved an amendment to the constitution, known as Amendment 5 or the Agricultural Enterprise Assistance Act. The measure empowered the legislature to issue special purpose revenue bonds in order to offer loans and financial assistance to agricultural enterprises serving important agricultural lands.

The term "important agricultural lands" was defined under Act 183, Session Laws of Hawaii 2005, and generally meant lands that:

1. "Are capable of producing sustained high agricultural yields;"

2. "Contribute to the State's economic base; and"

3. "Are needed to promote the expansion of agricultural activities."

Support

The campaign in support of the amendment was led by Vote Yes for Local Food.

Supporters

Officials

Amendment 2 received unanimous support in the Hawaii State Legislature.

Senate

The following state senators voted to place the measure on the ballot:

Note: A yes vote on the measure merely referred the question to voters and did not necessarily mean these legislators approved of the stipulations laid out in Amendment 2.

• Gilbert Kahele (D-1)
• Russell Ruderman (D-2)
• Joshua Green (D-3)
• Malama Solomon (D-4)
• Gilbert Keith-Agaran (D-5)
• Rosalyn Baker (D-6)
• Jamie Kalani English (D-7)
• Ronald Kouchi (D-8)
• Samuel Slom (R-9)
• Les Ihara, Jr. (D-10)
• Brian Taniguchi (D-11)
• Brickwood Galuteria (D-12)
• Susan Chun-Oakland (D-13)
• Donna Mercado Kim (D-14)
• Glenn Wakai (D-15)
• David Ige (D-16)
• Clarence Nishihara (D-17)
• Michelle Kidani (D-18)
• Will Espero (D-19)
• Mike Gabbard (D-20)
• Maile Shimabukuro (D-21)
• Donovan Dela Cruz (D-22)
• Clayton Hee (D-23)
• Jill Tokuda (D-24)
• Laura Thielen (D-25)

House

The following state representatives voted to place the measure on the ballot:

Note: A yes vote on the measure merely referred the question to voters and did not necessarily mean these legislators approved of the stipulations laid out in Amendment 2.

• Mark Nakashima (D-1)
• Cliff Tsuji (D-2)
• Richard Onishi (D-3)
• Faye Hanohano (D-4)
• Richard Creagan (D-5)
• Nicole Lowen (D-6)
• Cindy Evans (D-7)
• Joe Souki (D-8)
• Justin Woodson (D-9)
• Angus McKelvey (D-10)
• Kaniela Ing (D-11)
• Kyle Yamashita (D-12)
• Diana Mele Carroll (D-13)
• Derek Kawakami (D-14)
• James Tokioka (D-15)
• Daynette Morikawa (D-16)
• Gene Ward (R-17)
• Mark Hashem (D-18)
• Bert Kobayashi (D-19)
• Calvin Say (D-20)
• Scott Nishimoto (D-21)
• Tom Brower (D-22)
• Isaac Choy (D-23)
• Della Au Belatti (D-24)
• Sylvia Luke (D-25)
• Scott Saiki (D-26)
• Takashi Ohno (D-27)
• John Mizuno (D-28)
• Karl Rhoads (D-29)
• Romy Cachola (D-30)
• Aaron Johanson (R-31)
• Linda Ichiyama (D-32)
• K. Mark Takai (D-33)
• Gregg Takayama (D-34)
• Roy Takumi (D-35)
• Beth Fukumoto (R-36)
• Ryan Yamane (D-37)
• Henry Aquino (D-38)
• Ty Cullen (D-39)
• Bob McDermott (R-40)
• Rida Cabanilla Arakawa (D-41)
• Sharon Har (D-42)
• Karen Leinani Awana (D-43)
• Jo Jordan (D-44)
• Lauren Kealohilani Matsumoto (R-45)
• Marcus Oshiro (D-46)
• Richard Fale (R-47)
• Jessica Wooley (D-48)
• Cynthia Thielen (R-50)
• Chris Lee (D-51)

Former officials

A Vote Yes for Local Food titled, "Vote Yes 2 Local Food 4."

The following former official sponsored the proposed amendment in the Hawaii Legislature:

• Former Rep. Jessica Wooley (D-48)

Organizations

• Local Food Coalition
• Hawaii Aquaculture & Aquaponics Association
• Hawaii Cattlemen’s Council, Inc.
• Hawai‘i Food Industry Association
• Hawai‘i Association of Independent Schools
• Maui School Garden Network
• Malama Kaua‘i
• Hawaii Farm Bureau Federation
• Land Use Research Foundation of Hawaii
• Ulupono Initiative
• Hawai’i Green Growth
• Hawaii Farmers Union United
• The Kohala Center
• Chamber of Commerce of Hawaii

Businesses

• Hawaiian Commercial & Sugar Company
• Hawaii BioEnergy, LLC

Arguments

A Vote Yes for Local Food titled, "#Yes2LocalFood."

Kyle Datta and Gerald Sumida, writing for the Local Food Coalition, noted:

“	One major persistent and formidable obstacle to expanding, diversifying and ensuring the sustainability of Hawai'i's food production resources is the need for substantial capital investment in agriculture infrastructure, technologies, facilities, agricultural workforce training, and production and growth activities. We recognize that the State has been supporting many facets of agriculture in Hawai'i over the years. However, there are increasingly severe limits to what it can continue to support and finance… HB 748 is grounded in the recognition of these real, immediate and critical needs.	”
—Kyle Datta and Gerald Sumida

Ronald P. Weidenbach, president of the Hawaii Aquaculture & Aquaponics Association, provided testimony in “strong support” of HB 748, saying:

“	The agricultural activities that comprise Hawai’i’s agricultural sector today are very diverse and support our State’s goal of increasing local food production and enhancing food security. However, to take full advantage of the economic opportunities by such local agricultural production and value-added processing, substantial financial investments will be required. Such new agricultural investments would greatly benefit from the inclusion of “agriculture” in the definition of special purpose revenue bonds (SPRBs), and this definition should include all forms of agriculture, including aquaculture and aquaponics.	”
—Ronald P. Weidenbach

The Chamber of Commerce of Hawaii offered testimony in support of the measure before the Senate Agriculture Committee. The group argued:

“	This bill seeks to aid Hawaii’s agricultural community by supporting food security and sustainability throughout the State. The special purpose revenue bonds would help alleviate the burden on producers and processors by offsetting the costs for transportation, aged and obsolete infrastructure, as well as regulatory compliance issues. HB 748 HD2 provides much needed assistance to Hawaii’s farmers and ranchers to carry out many critical agricultural projects that would improve Hawaii’s economy while allowing the State to be self-sustaining.	”
—Chamber of Commerce of Hawaii

Campaign contributions

Total campaign cash as of November 5, 2014
Support:	$505,400
Opposition:	$0

As of November 5, 2014, the Local Food Coalition committee had received $505,400 in contributions.

PAC info:

PAC	Amount raised	Amount spent
Local Food Coalition	$505,400	$352,264
Total	$505,400	$352,264

The following are donors who contributed to the Local Food Coalition:

Top 5 contributors:

Donor	Amount
Ulupono Initiative	$500,000
Lanai Resorts, LLC	$2,000
Hawaii Cattlemen’s Council	$1,000
Cattlemen’s Action Legislative Fund	$1,000
Ponoholo Ranch, Ltd.	$500

Opposition

Opponents

• Hawaii Family Advocates

Arguments

• The League of Women Voters of Hawaii County issued a voter's guide, which contained both pro and con arguments. The following was the con argument for Amendment 2 found in the guide: "Large, for-profit agribusiness will also be eligible for low cost, state-funded loans. This will give them a competitive advantage over small farms."

Path to the ballot

See also: Amending the Hawaii Constitution

On January 2, 2014, a group of fourteen legislators introduced the bill, known as House Bill 748, into the legislature to alter the constitution and put the measure before voters. HB 748 was approved through a two-thirds vote in both legislative chambers. The bill was approved by the Hawaii House of Representatives and the Hawaii Senate on April 29, 2014. The measure was enrolled on May 5, 2014.

House vote

April 29, 2014 House vote

Hawaii HB 748 Senate Vote
Result		Votes	Percentage
a Yes		50	100.00%
No		0	0.00%

Senate vote

April 29, 2014 Senate vote

Hawaii HB 748 Senate Vote
Result		Votes	Percentage
a Yes		25	100.00%
No		0	0.00%

Similar measures

• Hawaii Agricultural Enterprise Assistance Act, Amendment 5 (2006) a

See also

Suggest a link

• 2014 ballot measures
• Hawaii 2014 ballot measures
• Hawaii Legislature

External links

Basic information

• House Bill No. 748

Support

• Vote Yes for Local Food
• Local Food Coalition Facebook
• Local Food Coalition Twitter