HB 1006: ADC; DOA; Enterprise; Definition; Agricultural Tourism; Agricultural Development Division; Transfer

A BILL FOR AN ACT

RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION.

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

     SECTION 1.  Section 163D-2, Hawaii Revised Statutes, is amended as follows:

     1.  By adding a new definition to be appropriately inserted and to read:

     ""Agricultural tourism" means commercial activity conducted on a working farm, or a farming operation as defined in section 165-2, for the enjoyment, education, or involvement of visitors; provided that:

     (1)  The agricultural tourism activity is accessory and secondary to the principal agricultural use, which shall constitute at least seventy-five per cent of the total farming activity; and

     (2)  Agricultural tourism shall not interfere with farm operations of adjacent or surrounding farms."

     2.  By amending the definition of "enterprise" to read:

     ""Enterprise" means a business with its principal place of business in Hawaii[, which] that is, or proposes to be, engaged in agricultural crop development, development of new value-added products, enhancement of existing agricultural commodities, and the application of existing agricultural appurtenant facilities to productive uses; provided that [the]:

     (1)  The majority of whatever the corporation produces shall be produced for export[.]; and

     (2)  Agricultural tourism activities shall not exceed twenty-five per cent of the total farming operation, with at least seventy-five per cent dedicated to active crop production or livestock farming.

"Enterprise" includes a business engaged in agricultural tourism."

     SECTION 2.  All rights, powers, functions, and duties of the agricultural development division of the department of agriculture are transferred to the agribusiness development corporation.

     All rules, policies, procedures, guidelines, and other material adopted or developed by the department of agriculture to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the agricultural development division of the department of agriculture of by this Act shall remain in full force and effect until amended or repealed by the agribusiness development corporation pursuant to chapter 91, Hawaii Revised Statutes.

     In the interim, every reference to the department of agriculture or chairperson of the board of agriculture in those rules, policies, procedures, guidelines, and other material is amended to refer to the agribusiness development corporation or executive director of the agribusiness development corporation, as appropriate.

     All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the agricultural development division of the department of agriculture, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the agricultural development division of the department of agriculture by this Act shall remain in full force and effect. Upon the effective date of this Act, every reference to the department of agriculture or the chairperson of the board of agriculture therein shall be construed as a reference to the agribusiness development corporation or the executive director of the agribusiness development corporation, as appropriate.

     All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the agricultural development division of the department of agriculture relating to the functions transferred to the agribusiness development corporation shall be transferred with the functions to which they relate.

     All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.

     No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act, and such officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

     An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this Act shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that such officer or employee possesses the minimum qualifications for the position to which transferred or appointed.

     If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor.

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

ADC; DOA; Enterprise; Definition; Agricultural Tourism; Agricultural Development Division; Transfer

Description:

Includes agricultural tourism in the definition of "enterprise" to authorize the Agribusiness Development Corporation to financially support farming businesses engaged in agricultural tourism.  Transfers the Agricultural Development Division of the Department of Agriculture to the Agribusiness Development Corporation.  Effective 7/1/3000.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION.

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

     SECTION 1.  Section 163D-2, Hawaii Revised Statutes, is amended as follows:

     1.  By adding a new definition to be appropriately inserted and to read:

     ""Agricultural tourism" means commercial activity conducted on a working farm, or a farming operation as defined in section 165-2, for the enjoyment, education, or involvement of visitors; provided that the agricultural tourism activity is accessory and secondary to the principal agricultural use and does not interfere with surrounding farm operations."

     2.  By amending the definition of "enterprise" to read:

     ""Enterprise" means a business with its principal place of business in Hawaii[, which] that is, or proposes to be, engaged in agricultural crop development, development of new value-added products, enhancement of existing agricultural commodities, and the application of existing agricultural appurtenant facilities to productive uses; provided that the majority of whatever the corporation produces shall be produced for export.  "Enterprise" includes a business engaged in agricultural tourism."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 3000.

Report Title:

Agribusiness Development Corporation; Enterprise; Definition; Agricultural Tourism

Description:

Includes agricultural tourism in the definition of "enterprise" to authorize the Agribusiness Development Corporation to financially support farming businesses engaged in agricultural tourism.  Effective 7/1/3000.  (HD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION.

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

     SECTION 1.  Section 163D-2, Hawaii Revised Statutes, is amended as follows:

     1.  By adding a new definition to be appropriately inserted and to read:

     ""Agricultural tourism" means commercial activity conducted on a working farm, or a farming operation as defined in section 165-2, for the enjoyment, education, or involvement of visitors; provided that the agricultural tourism activity is accessory and secondary to the principal agricultural use and does not interfere with surrounding farm operations."

     2.  By amending the definition of "enterprise" to read:

     ""Enterprise" means a business with its principal place of business in Hawaii[, which] that is, or proposes to be, engaged in agricultural crop development, development of new value-added products, enhancement of existing agricultural commodities, and the application of existing agricultural appurtenant facilities to productive uses; provided that the majority of whatever the corporation produces shall be used for export.  "Enterprise" includes a business engaged in agricultural tourism."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 3000.

Report Title:

Agribusiness Development Corporation; Enterprise; Definition; Agricultural Tourism

Description:

Includes agricultural tourism in the definition of "enterprise" to authorize the Agribusiness Development Corporation to financially support farming businesses engaged in agricultural tourism.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION.

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

     SECTION 1.  Section 163D-2, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Agricultural tourism" means commercial activity conducted on a working farm, or a farming operation as defined in section 165-2, for the enjoyment, education, or involvement of visitors; provided that the agricultural tourism activity is accessory and secondary to the principal agricultural use and does not interfere with surrounding farm operations."

     SECTION 2.  Section 163D-2, Hawaii Revised Statutes, is amended by amending the definition of "enterprise" to read as follows:

     ""Enterprise" means a business with its principal place of business in Hawaii, which is, or proposes to be, engaged in agricultural crop development, development of new value-added products, enhancement of existing agricultural commodities, and the application of existing agricultural appurtenant facilities to productive uses; provided that the majority of whatever the corporation produces shall be used for export.  "Enterprise" includes a business engaged in agricultural tourism."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon approval.

Report Title:

Agribusiness Development Corporation; Enterprise; Definition; Agricultural Tourism

Description:

Includes agricultural tourism in the definition of "enterprise" to authorize the Agribusiness Development Corporation to financially support farming businesses engaged in agricultural tourism.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 1687

Honolulu, Hawaii

RE:    H.B. No. 1006

       H.D. 2

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 1006, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to clarify and expand certain responsibilities of the Agribusiness Development Corporation.

     More specifically, this measure:

     (1)  Includes agricultural tourism in the definition of "enterprise" to authorize the Agribusiness Development Corporation to financially support farming businesses engaged in agricultural tourism; and

     (2)  Transfers the Agricultural Development Division of the Department of Agriculture to the Agribusiness Development Corporation.

     Your Committee received written comments in support of this measure from the Chamber of Commerce of Hawaii, Hawaii Farm Bureau, Maui Chamber of Commerce, and one individual.

     Your Committee received written comments in opposition to this measure from the Department of Agriculture, Hawaii Floriculture and Nursery Association, Hawaii Tropical Flower Council, Orchid Growers of Hawaii, and Synergistic Hawaii Agriculture Council.

     Your Committee received written comments on this measure from the Agribusiness Development Corporation and County of Hawaii Department of Research and Development.

     Your Committee finds that this measure will authorize the Agribusiness Development Corporation to provide financial and strategic support to farming businesses engaged in agricultural tourism, which is a growing and vital component of Hawaii's agricultural industry.  Your Committee further finds that transferring the Agricultural Development Division from the Department of Agriculture to the Agribusiness Development Corporation under the Department of Business, Economic Development, and Tourism can strengthen inter-agency collaboration, thereby providing a more efficient and cohesive marketing approach for Hawaii's agricultural businesses.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1006, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

STAND. COM. REP. NO. 1327

Honolulu, Hawaii

RE:    H.B. No. 1006

       H.D. 2

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Economic Development and Tourism, to which was referred H.B. No. 1006, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to include agricultural tourism in the definition of "enterprise" to authorize the Agribusiness Development Corporation to financially support farming businesses engaged in agricultural tourism.

     Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Agribusiness Development Corporation; Hawaiʻi Farm Bureau; Chamber of Commerce Hawaii; and Maui Chamber of Commerce.

     Your Committee received testimony in opposition to this measure from two individuals.

     Your Committee finds that agritourism combines the agricultural and tourism industries to offer prospective guests with unique experiences such as farm tours, farm-to-table dining, and direct-to-consumer sales of locally grown products.  As an entrepreneurial strategy, agritourism empowers local farmers to find greater success in their businesses through direct consumer interactions.  Additionally, agritourism allows local farmers to utilize the State's unique regional identity and cultural heritage.  Including agritourism in the definition of "enterprise" will allow local farmers to enhance existing revenue while diversifying agricultural operations.  Therefore, this measure expands the agricultural sector by empowering farmers to seek an additional source of revenue while promoting the State's unique cultural heritage and agricultural industry.

     Your Committee has amended this measure by:

     (1)  Clarifying the definition of "agricultural tourism" to:

          (A)  Specify that agricultural tourism activity shall be secondary to the principal agricultural use, of which shall constitute at least seventy-five percent of the total farming activity; and

          (B)  Prohibit agricultural tourism activities from interfering with farm operations of adjacent or surrounding farms;

     (2)  Clarifying the definition of "enterprise" to:

          (A)  Specify that not more than twenty-five percent of the total farming operation; and

          (B)  Require at least seventy-five percent of the total farming operation to be dedicated to active crop production or livestock farming;

     (3)  Inserting language transferring the Agricultural Development Division of the Department of Agriculture to the Agribusiness Development Corporation; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1006, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1006, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,

STAND. COM. REP. NO.  1075

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1006

      H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 1006, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION,"

begs leave to report as follows:

     The purpose of this measure is to include agricultural tourism in the definition of "enterprise" to authorize the Agribusiness Development Corporation to financially support farming businesses engaged in agricultural tourism.

     Your Committee received testimony in support of this measure from the Department of Agriculture; Department of Business, Economic Development, and Tourism; Agribusiness Development Corporation; Hawaiʻi Farm Bureau; Chamber of Commerce Hawaii; Maui Chamber of Commerce; and Hawaii Food+ Policy.

     Your Committee finds that agritourism is a growing industry that blends agriculture with tourism, providing farmers with new revenue opportunities while educating the public about local food production.  This measure expands the definition of "enterprise" to include agritourism, enabling the Agribusiness Development Corporation to offer financial and technical assistance to farmers developing agritourism ventures such as farm tours, workshops, and farm-to-table experiences.

     Your Committee has amended this measure by making a technical, nonsubstantive amendment for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1006, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1006, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

STAND. COM. REP. NO.  436

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1006

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Tourism, to which was referred H.B. No. 1006, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION,"

begs leave to report as follows:

     The purpose of this measure is to include agricultural tourism in the definition of "enterprise" to authorize the Agribusiness Development Corporation to financially support farming businesses engaged in agricultural tourism.

     Your Committee received testimony in support of this measure from the Department of Agriculture; Department of Business, Economic Development, and Tourism; Agribusiness Development Corporation; Hawaiʻi Farm Bureau; Hawaiʻi Farmers Union; Maui Chamber of Commerce; Hawaiʻi Food+ Policy; and one individual.  Your Committee received testimony in opposition to this measure from one individual.

     Your Committee finds that agricultural tourism is an entrepreneurial strategy that offers local farmers, many of whom may qualify as small businesses, greater economic opportunities through direct sales to and interaction with visitors to the State and other customers, while allowing farmers to capitalize on Hawaii's unique regional identity.

     As affirmed by the record of votes of the members of your Committee on Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1006, H.D. 1, and recommends that it be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Tourism,

STAND. COM. REP. NO.  87

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1006

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Agriculture & Food Systems, to which was referred H.B. No. 1006 entitled:

"A BILL FOR AN ACT RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION,"

begs leave to report as follows:

     The purpose of this measure is to include agricultural tourism in the definition of "enterprise" to authorize the Agribusiness Development Corporation to financially support farming businesses engaged in agricultural tourism.

     Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Agribusiness Development Corporation; Hawai‘i Farmers Union; Hawai‘i Farm Bureau; Hawaii Cattlemen's Council; and two individuals.

     Your Committee finds that agritourism is an innovative strategy that merges agriculture and tourism, providing farmers with additional revenue streams while educating consumers about local food production.  By including agricultural tourism in the definition of "enterprise", this measure allows the Agribusiness Development Corporation to extend financial and technical support to farming businesses engaged in agritourism.  This expansion will enable farmers to develop activities such as farm tours, hands-on workshops, and farm-to-table experiences, which not only enhance profitability but also strengthen consumer awareness and appreciation for Hawaii-grown products.

     Your Committee notes that the Agribusiness Development Corporation will need to revise its rules to account for the impact that this measure will have on existing state laws related to agritourism activities before it can begin effectuating this measure, if enacted.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Agriculture & Food Systems that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1006, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1006, H.D. 1, and be referred to your Committee on Tourism.

Respectfully submitted on behalf of the members of the Committee on Agriculture & Food Systems,