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HB776
HOUSE OF REPRESENTATIVES
H.B. NO.
776
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
relating
to agricultural support
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1.
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The legislature finds that Hawaii's
geographic isolation presents unique challenges for farmers, ranchers, and
local food producers, particularly in the form of high transportation
costs.
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Located thousands of miles from
the mainland United States, Hawaii relies heavily on shipping for the import
and export of goods, significantly increasing the cost of transporting
agricultural inputs such as feed, fertilizer, and equipment, as well as the
export of locally grown and produced products.
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According to a 2020 survey by the department of agriculture, thirty-nine
per cent of farmers, ranchers, and allied operators identified shipping costs
as a significant barrier to expanding their operations, particularly on Maui,
Kauai, and Hawaii Island.
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This suggests
that transportation expenses have been a persistent concern for the State's
agricultural sector.
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The
legislature further finds that the United States Department of Agriculture's
Reimbursement Transportation Cost Payment Program (RTCP) has successfully
supported geographically disadvantaged farmers and ranchers by offsetting high
transportation costs, enabling them to maintain competitiveness in the
marketplace.
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In 2022, the RTCP provided
$3,000,000 in reimbursements, with increased funding in 2023 helping more
producers access essential resources, expand their operations, and contribute
to the resilience of rural and remote agricultural communities.
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The
legislature additionally finds that establishing a state-level program like the
RTCP in the State would alleviate the high transportation costs faced by local
farmers, ranchers, and food producers, enabling them to operate more
sustainably and remain competitive in local and export markets.
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According to the United States Department of
Agriculture's latest agricultural census, Hawaii has approximately seven
thousand farms.
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Although not all farms
may qualify under the United States Department of Agriculture's
"geographically disadvantaged" criteria, a significant proportion
likely would qualify at the state level.
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Establishing a state program like the RTCP would support Hawaii's
efforts to bolster food security and reduce dependence on imported goods,
aligning with supporting the State's sustainability goals.
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Additionally, such a program would stimulate
economic growth by allowing producers to reinvest savings into expanding
operations, creating jobs, and enhancing the overall resilience of the State's
agricultural sector and rural communities.
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Therefore,
the purpose of this Act is to support the agriculture industry and economic
growth in Hawaii by:
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(1)
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Establishing the Hawaii agricultural
transportation assistance program, to consist of
a reimbursement program
for geographically disadvantaged farmers and livestock producers to mitigate
the high costs of transportation for agricultural products, inputs, and
supplies, and a grant program to assist small-scale farmers, ranchers, and
agricultural producers or agricultural producers in rural or underserved areas
with transportation costs directly related to the production and distribution
of agricultural commodities; and
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(2)
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Requiring the department of agriculture to submit
annual reports to the legislature on the progress and outcomes of the programs.
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SECTION
2.
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Chapter 141, Hawaii Revised Statutes,
is amended by adding a new part to be appropriately designated and to read as
follows:
"
Part .
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hawaii agricultural transportation ASSISTANCE
program
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�141-A
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Definitions.
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As used in this part:
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"Department"
means the department of agriculture.
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"Eligible
transportation costs" means expenses incurred for the intra-island,
inter-island, and out-of-state transportation of agricultural products, inputs,
and supplies, including but not limited to:
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(1)
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Fertilizers, seeds, and other agricultural
inputs;
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(2)
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Equipment and machinery;
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(3)
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Livestock and feed; and
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(4)
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Finished agricultural goods to same-island,
inter-island, national, or international markets.
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"Geographically
disadvantaged farmer or livestock producer" means a farmer or livestock
producer located and operating in the State who incurs transportation costs in
excess of $ as a result
of the State's isolated geographical location.
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�141-B
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Hawaii agricultural transportation assistance
program; established.
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(a)
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There is established in the department a
Hawaii agricultural transportation assistance program, which shall consist of:
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(1)
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The agricultural transportation reimbursement
program; and
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(2)
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The agricultural transportation grant program.
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�141-C
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Agricultural transportation reimbursement
program; established.
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(a)
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There is established within the department,
as part of the Hawaii agricultural transportation assistance program, the
agricultural transportation reimbursement program, which shall provide
reimbursements for the eligible transportation costs of geographically
disadvantaged farmers or livestock producers.
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(b)
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Reimbursement rates for the agricultural
transportation reimbursement program shall be determined by the department and
may vary based on the type of agricultural product, input, or supply
transported.
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(c)
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Reimbursements shall not exceed $8,000 for a
single applicant in a single year.
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(d)
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To be eligible for reimbursement, the
applicant shall:
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(1)
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Be an individual, corporation, or organization
domiciled in the State;
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(2)
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Provide documentation demonstrating that the
costs incurred were eligible transportation costs; and
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(3)
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Provide documentation of expenses, including
invoices, receipts, or any other required supporting documents.
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(e)
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The department shall prepare any forms
necessary to meet the requirements of this section.
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(f)
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The department shall publish on its website
the reimbursement rate schedule as well as any forms required by the department
for application for reimbursement.
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�141-D
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Agricultural transportation grant program;
established.
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(a)
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There is established within the department,
as part of the Hawaii agricultural transportation assistance program, the
agricultural transportation grant program, which shall provide grants to assist
small-scale farmers, ranchers, and agricultural producers or agricultural
producers in rural or underserved areas with transportation costs directly
related to the production and distribution of agricultural commodities.
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(b)
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The program shall provide grants to subsidize
transportation costs for the movement of raw or processed agricultural
products, agricultural inputs, and agricultural equipment within the State or
to and from markets, ports, or other destinations necessary for the applicant's
agricultural operations.
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(c)
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The department shall develop standards,
policies, and procedures for the administration of the agricultural transportation
grant program.
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(d)
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Requests for grants shall be submitted to the
department in accordance with administrative rules adopted by the department to
administer the grant program.
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Each
request shall, at a minimum, state:
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(1)
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The name of the
farmer, rancher, or agricultural producer requesting grant funds;
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(2)
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The expenses that
are necessary for the farmer, rancher, or agricultural producer to transport
raw or processed agricultural products, agricultural inputs, and agricultural
equipment within the State or to and from markets, ports, or other destinations
necessary for the applicant's agricultural operation; and
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(3)
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The size and location of the farmer's,
rancher's, or agricultural producer's farm, ranch, or agricultural operation.
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(e)
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Each applicant for a grant shall provide proof that the applicant:
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(1)
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Has United State
citizenship or permanent United States resident alien status and is a resident
or domiciliary of the State at the time of application;
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(2)
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Grows or produces raw or
processed agricultural products in the State at the time of the application;
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(3)
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Complies with all
other federal, state, or county statutes, rules, or ordinances necessary to
conduct the activities or provide the services for which a grant is awarded;
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(4)
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Complies with all
applicable federal and state laws prohibiting discrimination against a person
on the basis of race, color, national origin, religion, creed, sex, age, sexual
orientation, or disability;
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(5)
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Agrees not to use
state funds for entertainment or lobbying activities;
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(6)
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Allows the
department, legislative committees and their staff, and the auditor full access
to the applicant's records, reports, files, and other related documents and
information for the purposes of monitoring, measuring the effectiveness of, and
ensuring the proper expenditure of the grant;
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(7)
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Satisfies any
other standards that may be required by the source of funding; and
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(8)
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Meets all other
standards prescribed in rules adopted by the department to implement the grants
awarded under this section.
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(f)
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The department shall prepare any forms
necessary to meet the requirements of this section.
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�141-E
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Hawaii agricultural transportation assistance
special fund; established.
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(a)
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There is established within the state
treasury a Hawaii agricultural transportation assistance special fund, to be
administered by the department, into which shall be deposited the following
moneys:
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(1)
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Appropriations by the legislature to the
special fund;
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(2)
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Federal funds received for purposes aligned
with the goals of this part;
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(3)
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Private contributions, grants, or donations;
and
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(4)
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Revenues regardless of their source.
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(b)
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Moneys in the fund shall be used for the
agricultural transportation reimbursement program established pursuant to
section 141-C and the agricultural transportation grant program established
pursuant to section 141-D.
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Expenditures
from the fund may be made by the department without appropriation or allotment.
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(c)
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The department shall submit an annual report
to the legislature no later than twenty days prior to the convening of the
regular session of
each
regular session on the sources of moneys deposited into the fund and
expenditures of moneys from the fund.
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�141-F
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Rulemaking.
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The department
shall adopt rules pursuant to chapter 91 necessary for the purposes of this
part.
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�141-G
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Report to the legislature
.
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The department
shall submit a report to the legislature no later
than twenty days prior to the convening of each regular session that shall
include:
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(1)
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The number of participants in the agricultural
transportation reimbursement program and the total number and amount of
reimbursements distributed, with a breakdown of inter-island and out-of-state
transportation costs;
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(2)
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The number of participants in the agricultural
transportation grant program and the total number and amount of grants
distributed, with a breakdown of inter-island and out-of-state transportation
costs;
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(3)
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Assessment of the impact of the agricultural
transportation reimbursement program and agricultural transportation grant
program on agricultural productivity and competitiveness;
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(4)
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The outcomes of the agricultural
transportation reimbursement program and agricultural transportation grant
program, including an evaluation of the effectiveness of the programs in
achieving their goals; and
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(5)
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Any other findings and recommendations,
including proposed legislation."
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SECTION 3.
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The department of agriculture shall submit a
report to the legislature no later than twenty days prior to the convening of
the regular sessions of 2026 and 2027, which shall include:
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(1)
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A summary of the progress of the agricultural
transportation reimbursement program and agricultural transportation grant
program, including:
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(A)
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Number of participants in each program;
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(B)
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Total reimbursements and grants distributed,
with a breakdown of inter-island and out-of-state transportation costs; and
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(C)
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Impact assessments on agricultural
productivity and competitiveness as a result of the programs;
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(2)
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The outcomes of the agricultural
transportation reimbursement program and agricultural transportation grant
program, including an assessment of the programs' effectiveness in achieving
their goals; and
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(3)
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Any other findings and recommendations,
including proposed legislation.
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SECTION 4.
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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.
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SECTION 5.
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This Act shall take effect on July 1, 2025.
INTRODUCED BY:
_____________________________
Report Title:
Hawaii Agricultural Transportation Assistance Program; Reimbursement
Program; Grant Program; Report
Description:
Establishes
within the Department of Agriculture
the
Hawaii Agricultural Transportation Assistance
Program, to consist of a reimbursement program and grant program, to assist certain
farmers and livestock producers with transportation costs for agricultural
products, inputs, supplies, and production and distribution of agricultural
commodities.
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Requires reports to the
Legislature.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.