reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 155. Agricultural Loans › 155-4 Powers and duties of the department.

§155-4 Powers and duties of the department.
The department of agriculture shall have the following powers:
(1) Employ a secretary, who may be exempt from chapter 76, and other full-time and part-time employees, subject to chapter 76, as are necessary to effectuate the purposes of this chapter;
(2) Designate agents throughout the State as may be necessary for property appraisal, the consideration of loan applications, and the supervision of farming operations of borrowers. The agents may be compensated for their services at rates the department in its discretion may fix;
(3) Initiate and carry on a continuing research and education program, utilizing and coordinating the services and facilities of other government agencies and private lenders to the maximum, to inform qualified farmers concerning procedures for obtaining loans and to inform private lenders concerning the advantages of making loans to qualified farmers;
(4) Cooperate with private and federal government farm loan sources to increase the amount of loan funds available to qualified farmers in the State;
(5) Assist individual qualified farmers in obtaining loans from other sources. Insofar as available funds and staff permit, counsel and assist individual farmers in establishing and maintaining proper records to prove their farming ability for loan purposes;
(6) Insure loans made to qualified farmers and food manufacturers by private lenders under section 155-5;
(7) Participate in loans made to qualified farmers and food manufacturers by private lenders under section 155-6;
(8) Make direct loans to qualified farmers and food manufacturers under section 155-8;
(9) Borrow money for loan purposes;
(10) Assign and sell mortgages;
(11) Hold title to, maintain, use, manage, operate, sell, lease, or otherwise dispose of personal and real property acquired by way of foreclosure, voluntary surrender, or otherwise, to recover moneys loaned;
(12) Sue and be sued in the name of the "State of Hawaii";
(13) Exercise incidental powers as are deemed necessary or requisite to fulfill its duty in carrying out the purposes of this chapter;
(14) Delegate authority to its chairperson to approve loans, where the requested amount plus any principal balance on existing loans to the applicant, does not exceed $50,000 of state funds; and
(15) Adopt rules pursuant to chapter 91 necessary for the purpose of this chapter. [L 1959, c 278, pt of §1; am L Sp 1959 2d, c 1, §25; am L Sp 1960, c 10, §1; am L 1961, c 132, §2; am L 1965, c 96, §83; Supp, §102-4; HRS §155-4; am L 1968, c 53, §2; am L 1979, c 222, §4; am L 1982, c 63, §2; am L 1989, c 27, §1; am L 1997, c 258, §2; am L 2000, c 51, §4 and c 253, §150; am L 2021, c 136, §1; am L Sp 2021, c 9, §3]
Attorney General Opinions
If position of secretary is placed within provision of chapter 76, position must be filled by open competitive examination. Att. Gen. Op. 62-34.
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 155. Agricultural Loans › 155-5.6 Loan guaranty; important agricultural lands; agricultural and aquacultural loans.

§155-5.6 Loan guaranty; important agricultural lands; agricultural and aquacultural loans.
(a) From July 1, 2009, the chairperson of the board of agriculture may guarantee loans made by commercial lenders authorized to do business in this State, to agricultural producers for the purpose of developing and implementing agricultural projects; provided that the chairperson of the board of agriculture shall determine that:
(1) The agricultural projects are located on lands designated as important agricultural lands pursuant to part III of chapter 205; and
(2) The commercial lender has completed its due diligence in approving the loan, including ensuring adequate collateral.
The chairperson of the board of agriculture may impose other conditions that the chairperson deems reasonable to implement the loan guaranty.
(b) In addition to the conditions that the chairperson of the board of agriculture may impose under subsection (a), any loan guaranty made pursuant to this section shall meet the following conditions:
(1) For any loan that finances operating costs, the maximum term of the loan shall be ten years;
(2) For any loan that finances capital improvement costs, the maximum term of the loan shall be twenty years;
(3) The interest rate charged on any loan shall be one per cent below the commercial lender's prime rate for as long as the loan guaranty is in effect;
(4) The loan guaranty may be up to eighty-five per cent of the outstanding principal amount of any single loan, but shall not include any fees or accrued interest associated with the loan or its collection; and
(5) The total principal amount of the guaranteed portion of all loans outstanding at any time shall not exceed $2,500,000.
(c) The department of agriculture may adopt rules pursuant to chapter 91 to effectuate this section.
(d) As used in this section:
"Agricultural producer" means a farmer, cooperative association, or landowner who derives at least fifty per cent of its gross income from agricultural or aquacultural activities.
"Agricultural project" means a project relating to agricultural or aquacultural operations or capital improvements. [L 2008, c 233, §8]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 155. Agricultural Loans › 155-6 Participation in loans by the department.

§155-6 Participation in loans by the department.
(a) The department of agriculture may provide funds for a share, not to exceed ninety per cent, of the principal amount of a loan made to a qualified farmer, qualified new farmer, or qualified food manufacturer by a private lender who is unable otherwise to lend the applicant sufficient funds at reasonable rates.
(b) Participating loans under this section shall be limited by sections 155-9 to 155-13 for purposes of class "A" through class "I", the department's share not to exceed the maximum amounts specified therefor; provided that class "E" loans to food manufacturers shall not be subject to section 155-10.
(c) Interest charged on the private lender's share of the loan shall not be more than the sum of two per cent above the lowest rate of interest charged by all state or national banks authorized to accept or hold deposits in the State of Hawaii, on unsecured short term loans made to borrowers who have the highest credit rating with those banks.
(d) The private lender's share of the loan may be insured by the department up to ninety per cent of the principal balance of the loan, under the provisions of section 155-5.
(e) When a participating loan has been approved by the department, its share may be paid to the participating private lender for disbursement to the borrower.
(f) Out of interest collected, the private lender may be paid a service fee to be determined by the department which fee shall not exceed one per cent of the unpaid principal balance of the loan; provided that this fee shall not be added to any amount which the borrower is obligated to pay; and further provided that the private lender services the loan.
(g) The participating private lender may take over a larger percentage or the full principal balance of the loan at any time that it has determined, to the satisfaction of the department, that the borrower is able to pay any increased interest charges resulting.
(h) Security for participating loans shall be limited by the provisions of section 155-11. All collateral documents shall be held by the private lender. Division of interest in collateral received shall be in proportion to participation by the department and the private lender. [L 1959, c 278, pt of §1; am L Sp 1959 2d, c 1, §25; am L 1961, c 104, §1(f), (g), (h), and c 132, §2; Supp, §102-6; HRS §155-6; am L 1968, c 53, § §4, 5; am L 1989, c 222, §2 and c 261, §8; am L 1993, c 350, §4; am L 1997, c 258, §3; am L 1999, c 32, §3; am L 2000, c 51, §7; am L 2015, c 155, §5]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 155. Agricultural Loans › 155-6.5 Cooperation in loans by the department.

§155-6.5 Cooperation in loans by the department.
(a) The department of agriculture, for a fee, may underwrite and service loans for cooperating private lenders and government loan programs providing loan funds to qualified farmers and qualified food manufacturers. All fees shall be deposited into the general fund.
(b) Loans underwritten or serviced under this section shall not be subject to the restrictions in section 155-3.
(c) Loans underwritten or serviced under this section shall be limited by sections 155-1 and 155-9 to 155-12; provided that class "E" loans to food manufacturers shall not be subject to section 155-10. No class "D" and "F" loans shall be underwritten or serviced under this section.
(d) Loans underwritten or serviced under this section shall bear simple interest on the unpaid principal balance charged on the actual amount disbursed to the borrower. The interest rate on class "A", "B", "C", and "E" loans shall be at a rate of two per cent above the prime rate or at a rate of eight and one-half per cent a year, whichever is less. For purposes of this subsection, the prime rate shall be determined on January 1 and July 1 of each year and shall be the prime rate charged by the two largest banks in the State identified by the department of commerce and consumer affairs. If the prime rates of the two largest banks are different, the higher prime rate of the two shall apply.
The director of commerce and consumer affairs shall publish a notice statewide pursuant to section 1-28.5 to specify the prime rate.
(e) For loans underwritten or serviced under this section, funds shall be disbursed in accordance with rules adopted by the department pursuant to chapter 91.
(f) The department and the cooperating lender may charge a filing fee for any application made under this section. However, the applicant shall pay for any actual expenses incurred.
(g) The department and the cooperating lender may mutually agree on underwriting criteria, functions, responsibilities, and fees for loan underwriting and loan servicing, by way of a memorandum of agreement. The memorandum of agreement shall be approved by the chairperson of the board of agriculture. [L 1999, c 294, §2; am L 2000, c 51, §8; am L Sp 2021, c 9, §10]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 155. Agricultural Loans › 155-8 Direct loans.

§155-8 Direct loans.
(a) The department of agriculture may make loans directly to qualified farmers, qualified new farmers, or qualified food manufacturers who are unable to obtain sufficient funds at reasonable rates from private lenders either independently or under sections 155-5, 155-5.5, and 155-6.
(b) Loans made under this section shall be limited by sections 155-9 to 155-13; provided that class "E" loans to food manufacturers shall not be subject to [section] 155-10.
(c) Loans made under this section shall bear simple interest on the unpaid principal balance, charged on the actual amount disbursed to the borrower. The interest rate on loans of class "A", "B", "C", "E", and "G" shall be at a rate of one per cent below the prime rate or at a rate of seven and one-half per cent a year, whichever is less. For purposes of this subsection, the prime rate shall be determined on January 1 and July 1 of each year, and shall be the prime rate charged by the two largest banks in the State identified by the department of commerce and consumer affairs. If the prime rates of the two largest banks are different, the lower prime rate of the two shall apply. The interest rate of class "F" loans shall be at a rate of one and one-half per cent below the prime rate or at a rate of six per cent a year, whichever is less. The interest rate of class "H" and "I" loans shall be three per cent a year. If the money loaned is borrowed by the department, then the interest on loans of the classes shall be the rate as determined above or one per cent over the cost to the State of borrowing the money, whichever is greater. Interest on loans made under this chapter shall not be less than three per cent a year.
(d) For loans made under this section, funds shall be disbursed in accordance with regulations of the department. [L 1959, c 278, pt of §1; am L Sp 1959 2d, c 1, §25; am L 1961, c 104, §1(j) and c 132, §2; Supp, §102-8; HRS §155-8; am L 1968, c 53, §6; am L 1972, c 87, §2; am L Sp 1977 1st, c 19, §1; am L 1979, c 222, §6; am L 1989, c 222, §3 and c 317, §2; am L 1990, c 259, §2; am L 1997, c 258, §4; am L 2000, c 51, §9; am L 2008, c 209, §3; am L 2011, c 184, §4; am L 2015, c 155, §6]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 155. Agricultural Loans › 155-10 General eligibility requirements for loans.

§155-10 General eligibility requirements for loans.
To be eligible for loans under this chapter, an applicant shall be:
(1) A qualified farmer, a person under the new farmer program, or a part-time farmer;
(2) A citizen of the United States who has resided in the State for at least three years, or any permanent resident alien who has resided in the State for at least three years; provided that this requirement shall not apply to applicants for class "D" loans who otherwise qualify;
(3) A sound credit risk with the ability to repay the money borrowed; and
(4) Willing to carry out recommended farm management practices. [L 1959, c 278, pt of §1; am L 1961, c 104, §1(1); Supp, §102-10; HRS §155-10; am L 1974, c 231, §2(2); am L 1990, c 259, §3; am L 2000, c 51, §11; am L 2001, c 141, §2]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 155. Agricultural Loans › 155-11 Security for loans; mortgages.

§155-11 Security for loans; mortgages.
(a) Loans made under this chapter may be secured by duly recorded first mortgages upon the following property within the State:
(1) Fee simple land;
(2) Leaseholds of land where the lease has an unexpired term at least two years longer than the term of the loan;
(3) Crops, livestock, and equipment; and
(4) Other chattels.
(b) It also shall be lawful for the department of agriculture to require and accept as security for any loan:
(1) A junior mortgage; or
(2) Written agreements such as an assignment of income.
(c) For purposes of class "A" loans, no loan shall exceed eighty-five per cent of the value of the security offered. For purposes of class "B" and class "E" facility loans, no loan shall exceed eighty-five per cent of the value of the security offered. For purposes of class "C" loans and class "E" operating loans, the ratio of loan to the value of the security offered shall be discretionary with the department. For purposes of class "D" loans, the department, with the approval of the governor, may modify or waive any or all security requirements or any limitation with respect thereto.
(d) All security instruments for purposes of direct loans under section 155-8 shall be executed to and by the department. For purposes of insured loans under section 155-5, all security instruments shall be executed to and by the private lender; for purposes of participating loans under section 155-6 to and by the department and the private lender jointly.
(e) In case of the sale or transfer of the mortgaged land or goods in which the department has a security interest, as that term is defined in section 490:1-201, the department may permit the mortgage or encumbrance to be assumed by the purchaser. In case of the death of the borrower, the borrower's heir or heirs, or the borrower's legal representative or representatives, shall have the option within six months of the death to assume the mortgage of the deceased. The department or its agents, pending the exercise of the option and pending possession being taken by the heirs or representatives, may take possession of all mortgaged property and carry on the operation connected therewith, and the expense of the same shall be added to the principal due upon the mortgage to bear interest at the applicable rate.
(f) If a loan is granted, the department shall cause the title to real property to be examined and a mortgage drawn and recorded. The applicant shall pay the actual costs involved. No class "A" loans shall be made on unsurveyed lands. [L 1959, c 278, pt of §1; am L Sp 1959 2d, c 1, §25; am L 1961, c 104, §1(m), (q) and c 132, §2; Supp, §102-11; HRS §155-11; am L 1969, c 49, §2; gen ch 1985; am L 1990, c 230, §2; am L 1996, c 253, §2; am L 1997, c 161, §1; am L 2000, c 51, §12; am L 2004, c 162, §2]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 155. Agricultural Loans › 155-12 Conditions.

§155-12 Conditions.
Every borrower who is granted a loan under this chapter shall comply with the following conditions:
(1) Expend no portion of the borrower's loan for purposes other than those sanctioned by the department of agriculture;
(2) Carry out recommended management practices, including the keeping of proper records;
(3) Not sell or otherwise dispose of the mortgaged property except on written consent of the lender, and except upon conditions as may be prescribed in writing by the lender;
(4) Undertake to pay, when due, all taxes, liens, judgments, or assessments that may be lawfully assessed against the property mortgaged, together with the costs and expense of any foreclosure of the mortgage;
(5) Keep insured to the satisfaction of the department all buildings and other insurable property covered by the mortgage. Insurance shall be made payable to the mortgagee as its interests may appear at the time of the loss. At the option of the lender, and subject to the general regulations of the department, sums so received may be used to pay for reconstruction of the buildings destroyed, or for decreasing the amount of the indebtedness;
(6) Keep buildings in good repair; provide proper care for improvements, stock, and implements; keep land free from noxious weeds; and practice good systems of husbandry;
(7) All of the above conditions shall be held and construed to be a provision of any mortgage executed by virtue of this chapter whether appearing as a provision of the mortgage or not; and
(8) If the borrower is in default in respect to the above conditions, or any other conditions, or any other condition or covenant of the mortgage, the whole of the loan shall, at the option of the lender become due and payable forthwith. The lender may, with or without notice, take possession of the mortgaged property pending a foreclosure and may carry on the business pursuits upon the mortgaged premises, expending all reasonable sums therefor. The sums shall be a lien on the mortgaged premises and be recoverable in any foreclosure proceedings or otherwise. The lender may foreclose the mortgage by any method provided for by law. [L 1959, c 278, pt of §1; am L Sp 1959 2d, c 1, §25; am L 1961, c 104, §1(n) and c 132, §2; Supp, §102-12; HRS §155-12; gen ch 1985; am L 2000, c 51, §13]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 155. Agricultural Loans › 155-13 Repayment; refinancing.

§155-13 Repayment; refinancing.
(a) Loans made under this chapter shall be repaid in accordance with a payment plan specified by the lender, with payments applied first to interest and then to principal.
(b) Additional payments in any sums, or the payment of the entire principal, may be made at any date within the time period of the loan.
(c) The lender may, for satisfactory cause and at its discretion, extend the time within which the installments of principal may be paid for a period not to exceed two years; provided that the lender may further extend the time beyond the said two years for an additional period not to exceed three years if the borrower is in a state of extreme financial hardship which is caused by factors beyond the borrower's control, which factors include, but not limited to, the following: depressed prices, extended poor weather conditions, persistent crop failures, and rapidly increasing production costs not accompanied by a corresponding increase in the crop price.
(d) For loans in class "C" which are made to plant and cultivate land used for crops requiring eighteen months or more before first maturing, the department of agriculture may defer the first payment of principal and interest until the crop first matures; provided that:
(1) The chairperson shall determine the commencement date for payment of the first installment. The chairperson may defer the initial payment on the principal of a loan, not to exceed five years from the date of issuance of the loan; and
(2) The chairperson may defer the interest on the principal of a loan, not to exceed two years from the date of issuance of the loan.
For purposes of this subsection, "chairperson" means the chairperson of the board of agriculture.
(e) The borrower will be expected to refinance the balance owed on any direct loan as soon as the borrower is able to obtain credit from other sources at reasonable rates and terms. [L 1959, c 278, pt of §1; am L Sp 1959 2d, c 1, §25; am L 1961, c 104, §1(o), (p) and c 132, §2; Supp, §102-13; HRS §155-13; am L 1978, c 190, §1; gen ch 1985; am L 1995, c 78, §1; am L 1997, c 162, §1]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 155. Agricultural Loans › 155-14 Funds; application of payments.

§155-14 Funds; application of payments.
(a) There is created a special fund to be known as the agricultural loan revolving fund, from which moneys shall be loaned by the department of agriculture under this chapter. The department, by its board of agriculture, may transfer moneys from the agricultural loan revolving fund to the aquaculture loan revolving fund, from which moneys shall be disbursed by the department pursuant to chapter 219, and may transfer moneys from that revolving fund to the agricultural loan revolving fund for disbursement pursuant to this chapter; provided that:
(1) The amount of moneys transferred shall not exceed $1,000,000 for each revolving fund within the calendar year; and
(2) Twenty days prior to the convening of each regular session of the legislature, the department shall report to the legislature all transfers that were made between the agricultural loan revolving fund and the aquaculture loan revolving fund during the preceding calendar year and the balance of each revolving fund as of December 31 of each year.
(b) All payments received on account of principal shall be credited to the agricultural loan revolving fund.
(c) A proper reserve shall be maintained in the agricultural loan revolving fund to guarantee payment of loans under section 155-5.
(d) All funds of the department shall be paid out on warrants signed by the chairperson of the board of agriculture. [L 1959, c 278, pt of §1; am L Sp 1959 2d, c 1, §25; am L 1961, c 132, §2; am L 1963, c 206, §2; Supp, §102-14; HRS §155-14; am L 1979, c 222, §8; am L 1987, c 110, §1; am L 1989, c 347, §2; am L 1992, c 69, §2; gen ch 1993; am L 1995, c 11, §2; am L 1996, c 253, §3; am L 1997, c 2, §3; am L Sp 2021, c 9, §4]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 155. Agricultural Loans › 155-31 Definitions.

§155-31 Definitions.
As used in this part:
"Department" means the department of agriculture.
"Water infrastructure charge" means the on-bill charges for the use and services of the loan program, including the repayment of loans made under the loan program to be imposed on water utility customers.
"Water infrastructure equipment" means infrastructure improvements, equipment, and personal property to be installed for dams, reservoirs, hydroelectric pumping, storm water reclamation, ditch maintenance, spillways, wells, water ducts, water distribution systems, and water tanks.
"Water infrastructure loans" and "loan program" means the program established by this part and loans made to finance the purchase or installation of water infrastructure equipment for dams, reservoirs, hydroelectric pumping, storm water reclamation, ditch maintenance, spillways, wells, water ducts, water distribution systems, and water tanks. [L 2016, c 171, pt of §1; am L 2017, c 133, §1; am L Sp 2021, c 9, §5]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 155. Agricultural Loans › 155-32 Hawaii water infrastructure loan program.

§155-32 Hawaii water infrastructure loan program.
There is established a Hawaii water infrastructure loan program, which shall be a loan program as defined under section 39-51. The program shall be administered by the department in a manner consistent with chapter 39, part III. This loan program may include:
(1) Loans made, on terms approved by the department, to:
(A) Private entities, whether corporations, partnerships, limited liability companies, or other persons, which entities may lease or provide water infrastructure equipment to utility customers; and
(B) Water utilities; and
(2) Direct loans to utility customers, on terms approved by the department. [L 2016, c 171, pt of §1; am L 2017, c 133, §2]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 155. Agricultural Loans › 155-33 Powers of the department.

§155-33 Powers of the department.
The department shall have the following powers:
(1) Make loans and expend funds to finance the purchase or installation of water infrastructure equipment for dams, reservoirs, hydroelectric pumping, storm water reclamation, ditch maintenance, spillways, wells, water ducts, water distribution systems, and water tanks;
(2) Hire employees necessary to perform its duties;
(3) Enter into contracts for the service of consultants for rendering professional and technical assistance and advice, and any other contracts that are necessary and proper for the implementation of the loan program;
(4) Enter into contracts for the administration of the loan program, in accordance with chapter 103D;
(5) Establish loan program guidelines to carry out the purposes of this part;
(6) Perform all functions necessary to effectuate the purposes of this part;
(7) Delegate authority to the chairperson of the board of agriculture to approve loans where the requested amount plus any principal balance on existing loans to the applicant does not exceed $25,000 of state funds; and
(8) Adopt rules pursuant to chapter 91 necessary for the purpose of this part. [L 2016, c 171, pt of §1; am L 2017, c 133, §3; am L Sp 2021, c 9, §6]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 155D. Livestock Revitalization Program › 155D-1 Definitions.

§155D-1 Definitions.
As used in this chapter:
"Administrative costs" means costs associated with reviewing, approving, and recording expenditures and completing any reporting requirements associated with the grant program.
"Department" means the department of agriculture.
"Milk" means the lacteal secretion, practically free from colostrums, obtained by the milking of healthy cows or goats normally produced or marketed through the channels of the fluid milk trade or for further processing into milk products.
"Poultry products" means chicken eggs, uncooked in shell, egg-laying chicks, meat bird chicks, pullets, broilers, fryers, and laying chicken hens.
"Qualified feed developer" means any person that, at the time of application for and disbursement of funds under this chapter, is in the business of cultivating feed crops or manufacturing feed for qualified producers.
"Qualified producer" means any person that at the time of application for and disbursement of funds under this chapter is in the business of producing:
(1) Milk from a herd, located in Hawaii, of not less than ten cows or twenty-five lactating milking goats;
(2) Poultry products from a flock, raised and located in Hawaii, of not less than thirty birds;
(3) Pork from a herd, raised and located in Hawaii, of not less than ten sows;
(4) Beef that is grown, slaughtered, processed, and marketed in Hawaii. Producers who finish at least twenty head of beef cattle annually shall be eligible for this program;
(5) Sheep, lambs, or goats that are grown, slaughtered, processed, and marketed in Hawaii, with current annual sales of not fewer than thirty sheep, lambs, or goats; or
(6) Fish or crustaceans, farmed by aquacultural practices, with current annual sales of not less than two thousand pounds. [L 2007, c 221, pt of §2; am L 2013, c 200, §2; am L 2016, c 221, §3]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 155D. Livestock Revitalization Program › 155D-3 Exemption from chapter 42F.

§155D-3 Exemption from chapter 42F.
Chapter 42F shall not apply to the grants made pursuant to this chapter, but all reimbursements shall be made only in accordance with the standards and conditions specified in section 155D-2. [L 2007, c 221, pt of §2]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 157. Milk Control Act › 157-13 General powers.

§157-13 General powers.
The department of agriculture through its board is hereby vested with the following powers:
(1) To regulate and supervise in a milk shed the production, transportation, processing, storage, distribution, and delivery of milk, the establishment of quotas and the setting of minimum prices to be paid to producers by producer-distributors and distributors; provided that nothing contained in this chapter shall be construed to abrogate or affect the status, force or operation of any provision of the laws on public utilities, public health, expenditure of public funds or any local health ordinance or health regulation.
(2) To investigate all matters in a milk shed pertaining to the production, transportation, processing, storage, distribution, and delivery of milk, and the establishment of quotas and the setting of minimum prices to be paid to producers by producer-distributors and distributors; to subpoena producers, producer-distributors and distributors, their records, books and accounts, and any other person from whom information may be desired to carry out the purpose and intent of this chapter; and by leave of a circuit court, to order the taking of depositions of witnesses absent from the State. Any authorized employee may sign and issue subpoenas and may administer oaths to witnesses and conduct hearings and investigations. In case of failure of any person to comply with any subpoena issued under authority of this chapter, or the refusal of a witness to testify to any matter regarding which the witness may be lawfully interrogated, the judge of the district court of the circuit in which the person resides or of the circuit in which the person may be personally served, on application of the board or its authorized representatives, shall compel obedience, as in the case of disobedience of the requirements of a subpoena issued from such court or a refusal to testify therein.
(3) To assist all industry-wide programs pertaining to the production, transportation, processing, storage, distribution, and delivery of milk, feed, supplies, animals, and other related agricultural commodities. Such programs may include advertising, feed storage and ensilage programs, heifer replacement program, agricultural park programs, relocation of dairies, and other related programs that would make the milk shed more viable, thereby assuring the production of an adequate supply of wholesome milk for the consumer.
(4) To control the intrastate shipment of milk including shipment of milk between counties.
(5) To make and enforce all rules and regulations and all orders necessary to carry out this chapter.
The operation and effect of any provision of this chapter conferring a general power shall not be impaired or qualified by the granting of a specific power or powers. [L 1967, c 260, §6; HRS §157-13; am L 1970, c 188, § §39, 40; am L 1971, c 184, §3; am L 1973, c 31, §6; am L 1977, c 65, §2; gen ch 1985]
Cross References
Rulemaking, see chapter 91.
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 157. Milk Control Act › 157-14 Inspection and investigation.

§157-14 Inspection and investigation.
For the purpose of enforcing this chapter, including but not limited to the provisions on licensing, setting of minimum prices and quotas, the board of agriculture or any of its authorized employees may enter at all reasonable hours all places within the State where milk is being produced, sold, stored, processed, or containerized, or where the books, papers, records, or documents relating to such transactions are kept, and shall have power to inspect and copy the same. It may administer oaths and take testimony for the purpose of ascertaining facts which in its judgment are necessary to administer this chapter. [L 1967, c 260, §7; HRS §157-14]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 157. Milk Control Act › 157-15 Audit of books and accounts.

§157-15 Audit of books and accounts.
The board of agriculture may examine and audit the books and accounts of licensed producers, producer-distributors, and distributors for the purpose of determining how payments to producers and producer-distributors are computed, whether the amounts of the payments are fair, or whether any provisions of this chapter affecting such payments, directly or indirectly, have been or are being violated. The board may also examine and audit the costs of the production, handling, processing, distribution, and marketing of milk as they may affect such payments, directly or indirectly. The board shall conduct a monthly audit with Federal Milk Marketing Order specifications which examines and verifies milk utilization by the processing plants. The board may also contract for an independent audit with Federal Milk Marketing Order specifications to examine and verify milk utilization by the processing plants at least once during the fiscal year for each processor when:
(1) A class I milk only situation exists; and
(2) Milk is utilized for other than class I purposes or rejected for reasons other than antibiotics, high temperature, low cryoscope, off-flavor, somatic cell count, or as determined necessary by the board.
The audit report for each processing plant shall be made available after completion. [L 1967, c 260, §8; HRS §157-15; am L 1988, c 25, §2; am L 1994, c 144, §2]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 157. Milk Control Act › 157-17 Accounting of licensees.

§157-17 Accounting of licensees.
Every producer-distributor, distributor, and agricultural cooperative subject to license or regulation under this chapter, in making payments to producers for milk sold or delivered to such producer-distributor, distributor or cooperative, shall clearly set forth the unit price for such milk, whether determined pursuant to federal or state authority or pursuant to agreement, together with the amount of all premiums, subsidies, differentials, deductions, service fees, hauling charges, supply expenses, costs, or adjustments of any nature whatsoever, in such a manner as to fully disclose to the producer the rate, basis and manner of computing such payments. [L 1967, c 260, §10; HRS §157-17]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 157. Milk Control Act › 157-18 Report to governor.

§157-18 Report to governor.
At the end of each license year, the board of agriculture shall submit to the governor a report relating to the activities of the milk control program. [L 1967, c 260, §11; HRS §157-18; am L 1986, c 61, §2]
Cross References
Annual reports, see §93-12.
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 157. Milk Control Act › 157-21 Licensing.

§157-21 Licensing.
It shall be unlawful for any producer, producer-distributor, or distributor to produce, sell, process, or distribute milk in a milk shed unless the person is duly licensed as provided by this chapter. It shall be unlawful for any such person to sell, buy, process, or distribute milk which the person knows or has reason to believe has been produced or handled in violation of this chapter. [L 1967, c 260, §12; HRS §157-21; gen ch 1985]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 157. Milk Control Act › 157-22 Application for license and payment of fee.

§157-22 Application for license and payment of fee.
An applicant for an original or renewal license to operate as a producer, producer-distributor, or distributor shall file an application upon a form prepared by the board of agriculture, containing such information which the board deems necessary for the administration of this chapter. The board shall establish a reasonable application fee for an original or renewal license which the applicant shall remit when application is filed. An agricultural cooperative all of whose producer-members have complied with the licensing provisions of this chapter shall be exempt from the payment of the application fee.
The license year shall be from July 1 to the following June 30. All applications for renewal of licenses must be duly made at least thirty days before the commencement of the license year. [L 1967, c 260, §13; HRS §157-22; am L 1977, c 65, §4]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 157. Milk Control Act › 157-23 License fees.

§157-23 License fees.
In order to meet the expenditures necessary to administer this chapter, the board of agriculture shall establish license fees to be paid by producers, producer-distributors and distributors. In determining these fees, the board shall, at least thirty days before the new license year begins:
(1) Project the reasonable expenditures necessary to administer the chapter for the license year;
(2) Project the amount to be paid by applicants for original or renewal licenses for the license year;
(3) Project the reasonable expenditures necessary to conduct an independent monthly audit;
(4) Estimate the total volume of milk to be produced and processed for the license year;
(5) Using (1), (2), (3), and (4) above, establish a reasonable rate per hundred-weight or other unit as determined by the board; and
(6) Collect such fees monthly, or at such other intervals as may be determined by the board, during the license year based on actual milk produced and processed.
To facilitate the collection of license fees, the board may require a producer-distributor or distributor to withhold from any payment owing to any producer a part or all of the license fee due under this chapter by such producer. For any such withholding required by the board, the producer-distributor or distributor shall be paid a reasonable fee by the board. The amount of the fee shall be set by the board. An agricultural cooperative all of whose producer-members have complied with the licensing provisions of this chapter shall be exempt from the payment of the license fee. [L 1967, c 260, §14; HRS §157-23; am L 1977, c 65, §5; am L 1988, c 25, §3]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 157. Milk Control Act › 157-24 Granting, suspending, and revoking licenses.

§157-24 Granting, suspending, and revoking licenses.
(a) No license shall be denied unless the board of agriculture finds, after due notice and opportunity of hearing to the applicant or licensee, one or more of the following:
(1) That the applicant is not qualified or does not possess equipment to conduct the business properly.
(2) That the issuance of the license will tend to promote destructive or demoralizing competition in a market already adequately served.
(3) That the issuance of the license is otherwise not in the public interest.
(b) The board may refuse to renew a license or may suspend or revoke a license, upon due notice and opportunity of hearing to the licensee, when it finds any of the following:
(1) That any licensee has, without reasonable cause, refused to accept milk delivered or failed to deliver milk as agreed, except where a contract has been terminated.
(2) That any licensee has failed to account or make payment, without reasonable cause, for any milk purchased.
(3) That any licensee has been adjudged a bankrupt.
(4) That any licensee has continued in a course of dealing of such a nature as to indicate the licensee's inability or unwillingness to properly conduct the business of producing, processing, delivering, receiving, or selling milk or of the licensee's intent to deceive or defraud producers, producer-distributors, distributors or consumers.
(5) That any licensee has violated the state antitrust law, chapter 480.
(6) That any licensee has failed to keep records or to furnish the statements or information required by the board.
(7) That any licensee has intentionally made a false or misleading statement upon which the license was issued.
(8) That the licensee has violated or failed to comply with this chapter.
(9) That the licensee has ceased to operate the milk business for which the license was issued.
(c) The board may conditionally renew a license or may conditionally decline to suspend or revoke a license, but such condition shall have appropriate relation to the administration of this chapter. [L 1967, c 260, §15; HRS §157-24; gen ch 1985]
Cross References
Administrative hearing, see chapter 91.
Law Journals and Reviews
Crying Over Spilt Milk: Recognizing Hawaii's Unique State Characteristics in the Context of the Dormant Commerce Clause. 32 UH L. Rev. 513 (2010).
Case Notes
Section violates commerce clause. 590 F. Supp. 778 (1984).
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 157. Milk Control Act › 157-25 Proceedings to review.

§157-25 Proceedings to review.
The action of the board of agriculture in refusing to grant or renew a license, or in revoking or suspending a license, or in conditioning or limiting the granting or renewal of a license, may be reviewed in the manner provided by chapter 91. [L 1967, c 260, §16; HRS §157-25]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 157. Milk Control Act › 157-27 Reports of licensees.

§157-27 Reports of licensees.
Each licensee shall as required by rule or order of the board of agriculture, file a verified report on forms prescribed by the board of matters on account of which a record is required to be kept, together with such other information or facts as may be pertinent and material within the scope of this chapter. [L 1967, c 260, §18; HRS §157-27]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 157. Milk Control Act › 157-29 Milk control special fund.

§157-29 Milk control special fund.
There is established the milk control special fund to be administered by the board of agriculture. All moneys received by the board of agriculture as application fees and for licenses or otherwise under this chapter, and any state appropriations or other moneys made available to carry out the purposes of this chapter, shall be deposited into the special fund. All interest earned or accrued on moneys deposited in the special fund shall become part of the special fund. Moneys in the special fund shall be expended to cover all costs of administering this chapter including but not limited to the costs of salaries, fringe benefits, operating expenses, equipment, motor vehicles, contracts for services, and promotional expenses. Moneys in the special fund may be transferred to the general fund for salaries and fringe benefits of other state employees assisting in administering this chapter and other related costs. A reserve in an amount of not less than $300,000 shall be maintained in the special fund to cover contingency costs including but not limited to accrued vacation leave, audits, unemployment insurance, and workers' compensation. [L 1998, c 211, §1; am L 2014, c 176, §2]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 157. Milk Control Act › 157-30 Petition to establish or terminate a milk shed.

Note
Part heading amended by L 1971, c 184, §4.
§157-30 Petition to establish or terminate a milk shed.
Upon petition by fifty-five per cent of all producers and producer-distributors, or by fifty-five per cent of all producers in a prospective milk shed, or upon the board's own motion, the board shall hold a public hearing to establish or terminate a milk shed in a county comprising one island or on one or more islands or a portion of an island comprising a county. [L 1971, c 184, pt of §4; ree L 1972, c 40, pt of §2]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 157. Milk Control Act › 157-31 Petition to establish, revise, or terminate minimum prices, salvage values, and quotas.

§157-31 Petition to establish, revise, or terminate minimum prices, salvage values, and quotas.
(a) Upon petition by the producers and producer-distributors who produce fifty-five per cent of the milk in a milk shed, or by fifty-five per cent of all producers in a milk shed, or upon the board's own motion, the board shall adopt rules pursuant to chapter 91 to:
(1) Establish, revise, or terminate the minimum prices or salvage values for milk to be paid to producers and producer-distributors or the quotas for the production of milk in a milk shed, or any of them; or
(2) Establish specific formulas or criteria for determining the minimum prices or salvage values for milk to be paid to producers and producer-distributors or the quotas for the production of milk in a milk shed, or any of them.
For the purposes of this section, each producer-member of an agricultural cooperative shall be counted as a producer, and an agricultural cooperative shall not be counted as a producer or as a producer-distributor.
(b) Public hearings to establish, revise, or terminate minimum prices, salvage values, and quotas or to establish specific formulas or criteria for setting minimum prices, salvage values, or quotas, shall not constitute a contested case as defined by chapter 91. [L 1967, c 260, §20; HRS §157-31; am L 1971, c 184, pt of §4; ree L 1972, c 40, pt of §2; am L 1977, c 96, §2; am L 1997, c 118, § §2, 6; am L 1998, c 19, §1]
2023 Hawaii Revised Statutes › Title 11. Agriculture and Animals › 157. Milk Control Act › 157-32 Standards to determine minimum prices.

§157-32 Standards to determine minimum prices.
(a) As a guide to determining the minimum prices of milk to be paid to producers and producer-distributors, the board shall take into consideration the following items based on the operations of a reasonably efficient producer:
(1) The price to producers necessary to assure the production of an adequate supply of wholesome milk for the market.
(2) The price necessary to return to the producer, the producer's cost of production, plus a fair return on the producer's invested capital, the producer's family labor and the producer's management skills.
(3) The costs incurred in obtaining, feeding, managing and maintaining dairy animals at optimum production capacity.
(4) The prevailing wages and perquisites of employees.
(5) The ordinary fixed charges and operating expenses incident to the ownership, operation and management of the dairy.
(b) In establishing minimum prices for milk under this chapter, the board shall further consider the effect thereof on the consumer. [L 1967, c 260, §21; HRS §157-32; ree and am L 1972, c 40, pt of §2; gen ch 1985]