Establishes the Agricultural Grant Program and Agricultural Grant Revolving Fund to allow the Department of Agriculture and Biosecurity to retain and expend federal indirect overhead reimbursements for the purposes of gr, the official text

HOUSE OF REPRESENTATIVES

H.B. NO.

2246

THIRTY-THIRD LEGISLATURE, 2026

H.D. 1

STATE OF HAWAII

S.D. 1

C.D. 1

A BILL FOR AN ACT

RELATING TO AGRICULTURAL GRANT ADMINISTRATION.

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

SECTION 1.  The legislature finds that federal
agricultural grants provide financial support to Hawaii's
agricultural industry.  The department of
agriculture and biosecurity actively pursues these federal grants and has
recently hired a grant writer, whose efforts have yielded great results.  Since November 2024, $8,899,450.16 in federal
grant funds have been obtained from the United States Department of Agriculture
and another $5,285,000 in grants have applications in process.  Many of the federal grants being pursued by
the department provide for indirect overhead reimbursements or an allowable
management fee to reimburse the State for costs associated with management of certain
federal grants.

The
legislature further finds that the establishment of a formal agricultural grant
program and a revolving fund would allow the department of agriculture and
biosecurity to retain these funds and cover a portion of the program
costs.  Funds from the revolving fund
would be used to search for additional grant opportunities, develop program
applications to monitor grant execution, ensure compliance with grant requirements,
and audit grant expenditures.  Moneys in
the fund will also be used for consultant services and operational expenses.

The
purpose of this Act is to establish an agricultural grant program in the
department of agriculture and biosecurity and an agricultural grant revolving
fund.

SECTION
2.  Chapter 141, Hawaii Revised Statutes,
is amended by adding two new sections to part I to be appropriately designated
and to read as follows:

"§141-A  Agricultural grant program; established.
(a)  There is established in the department of
agriculture and biosecurity an agricultural grant program to search for, apply
for, and administer federal agricultural grant opportunities that could benefit
the Hawaii agricultural industry.

(b)  The department of agriculture and biosecurity
may retain and expend federal indirect overhead reimbursements for grants as
determined by the chairperson of the board of agriculture and biosecurity.

§141-B  Agricultural grant revolving fund.  (a)
There is established in the state treasury an agricultural grant
revolving fund into which shall be deposited the department of agriculture and
biosecurity's share of federal indirect
overhead reimbursements, pursuant to section 141-A.

(b)  Moneys in the agricultural grant revolving
fund shall be expended by the department of agriculture and biosecurity to
search for discretionary grants, develop program applications to secure
additional revenues for the department of agriculture and biosecurity, monitor
grant execution, ensure compliance with grant requirements, and audit grant
expenditures.  Moneys in the revolving
fund may be expended for consultant services and operational expenses,
including the hiring of temporary staff.

(c)  The department of agriculture and biosecurity
shall prepare and submit an annual report on the status of the agricultural
grant revolving fund to the legislature no later than twenty days prior to the
convening of each regular session.  The
annual report shall include but not be limited to a list of federal
agricultural grant applications submitted and grant awards received."

SECTION
3.  In codifying the new sections added
by section 2 of this Act, the revisor of statutes shall substitute appropriate
section numbers for the letters used in designating the new sections in this
Act.

SECTION
4.  New statutory material is
underscored.

SECTION
5.  This Act shall take effect on July 1,
2026.