HB 1013: RELATING TO IMPORTANT AGRICULTURAL LANDS.

A BILL FOR AN ACT

RELATING TO IMPORTANT AGRICULTURAL LANDS.

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

     SECTION 1.  The legislature finds that in 2008, the legislature passed incentives intended to promote agricultural viability, sustained growth of the agricultural industry, and the long-term use and protection of lands designated as important agricultural lands.

     Act 233, Session Laws of Hawaii 2008, included a provision for landowners to develop, construct, and maintain farm dwellings and employee housing for farmers, employees, and their immediate family members on lands designated as important agricultural lands; provided that occupants of these dwellings are actively engaged in farming.  Although this provision was intended as an incentive for the designation and agricultural use of important agricultural lands, it is unclear whether this provision also imposes additional restrictions on farm dwellings and employee housing on important agricultural lands.

     The legislature recognizes that the lack of affordable housing for farmers and farm employees is an impediment to increasing food and non-food agricultural production in Hawaii.  There is still a need to develop housing for farmers and farm employees on lands designated as important agricultural lands that reduces the cost and time required to supply such housing and ensures that the housing is used in conjunction with, and located on, an active farm and is occupied by bona fide farmers or farm employees.

     The purpose of this Act is to:

     (1)  Establish an important agricultural lands incentive to facilitate the development of farm cluster housing for farmers, farm employees, and their immediate family members;

     (2)  Include farm cluster housing under a priority permit processing procedure for facilities on lands designated as important agricultural lands; and

     (3)  Repeal the existing requirements for farm dwellings and employee housing on important agricultural lands to eliminate any restrictions that may be stricter than what is allowed under the existing definition of a farm dwelling.

     SECTION 2.  Chapter 205, Hawaii Revised Statutes, is amended by adding to part III a new section to be appropriately designated and to read as follows:

     "§205-     Important agricultural lands incentive; farm cluster housing.  (a)  There is established an important agricultural lands incentive to provide an alternative means to develop housing for farmers and farm employees who actively and currently farm lands that are designated as important agricultural lands.  The incentive shall be used to support development of farmer and farm employee housing that reduces costs and time while ensuring that the housing developed does not contribute to the loss of agricultural land to non‑agricultural residential uses or residential sprawl.

     (b)  Notwithstanding section 205-51(b) and any other law to the contrary, a landowner or lessee of lands that are designated as important agricultural lands may apply to a county for a permit, in a form to be determined by the county, that allows the landowner or lessee to develop, construct, and maintain farm cluster housing on the lands for rent to farmers and farm employees who actively and currently farm on important agricultural lands and their immediate family members.

     (c)  Each county shall enact ordinances to allow farm cluster housing on important agricultural lands.  The ordinances shall provide for:

     (1)  Conformance with the conditions in subsection (d);

     (2)  Exemption from subdivision of the land and other county subdivision ordinances;

     (3)  Priority review and processing pursuant to section 205-46.5;

     (4)  The development of more units per lot than allowed by the underlying county zoning; and

     (5)  The submission to the county of the landowner or lessee's agricultural plan or agricultural business plan supporting the development of farm cluster housing and providing evidence of a real property agricultural tax dedication granted by the county.  The agricultural plan and agricultural tax dedication verification shall be submitted to the appropriate county agency for review and comment and may be submitted by the county to the department of agriculture for review and comment, before any county action on the application.

     (d)  Farm cluster housing shall be subject to the following conditions:

     (1)  Farm cluster housing shall be allowed only on lots of record that are at least ten acres;

     (2)  All farm cluster housing units shall be leased or rented to a farmer or farm employee who is farming the important agricultural lands upon which the farm cluster housing is situated.  This restriction shall be stated in any applicable rental documents;

     (3)  The total land area upon which the farm cluster housing units and all appurtenances are situated shall occupy an area that is the lesser of:

          (A)  A contiguous block or area no more than five per cent of the lot of record; or

          (B)  A contiguous block or area not to exceed ten acres;

     (4)  The farm cluster housing units shall meet all applicable building code requirements and infrastructure requirements and standards necessary to ensure safe and healthful occupancy;

     (5)  The farm cluster housing units shall not be used for short-term vacation rentals;

     (6)  The landowner or master lessee shall be responsible for ensuring compliance with the occupancy requirement set forth in paragraph (2) and the restriction on use set forth in paragraph (5); and

     (7)  If farm cluster housing units are vacated as a result of the cessation of any agricultural operations on the important agricultural lands, the landowner or master lessee may rent the farm cluster housing units under the same restrictions imposed by this section to a farmer or farm employee of a bona fide farming operation, as defined in section 165-2, on other agricultural lands, whether or not those lands have been designated as important agricultural lands.

     (e)  The officer or agency charged with the administration of county zoning laws within each county shall enforce the building and use restrictions in this section and impose penalties for violations of any provision of this section or of any related county permit.

     (f)  Farm dwellings and employee housing units on lands designated as important agricultural lands that are not processed as farm cluster housing pursuant to this section shall be subject to all applicable state laws, county ordinances, and rules.

     (g)  As used in this section:

     "Farm cluster housing" means an agricultural housing development that concentrates farm dwellings and farm employee housing units and shared infrastructure in a compact area within the larger lot and minimizes the land area occupied by the housing development.

     "Short-term vacation rental" means "short—term rental home", "transient vacation rental", "transient vacation unit", or "transient vacation use", as those terms are defined by county ordinance."

     SECTION 3.  Section 205-46.5, Hawaii Revised Statutes, is amended by amending its title and subsection (a) to read as follows:

     "[[]§205-46.5[]]  Agricultural processing facilities; farm cluster housing; permits; priority.  (a)  Any agency subject to this chapter or title 13 that issues permits for:

     (1)  Agricultural processing facilities that process crops or livestock from an agribusiness; or

     (2)  Farm cluster housing developed pursuant to section 205-   ,

shall establish and implement a procedure for the priority processing of those permit applications and renewals, at no additional cost to the applicant[, for agricultural processing facilities that process crops or livestock from an agribusiness]; provided that the majority of the lands held, owned, or used by the agribusiness or farm cluster housing applicant shall be land designated as important agricultural lands pursuant to this part, excluding lands held, owned, or used by the agribusiness or applicant in a conservation district.

     Any priority permit processing procedure established pursuant to this section shall not provide or imply that any permit application filed under the priority processing procedure shall be automatically approved."

     SECTION 4.  Section 205-45.5, Hawaii Revised Statutes, is repealed.

     ["[§205-45.5]  Important agricultural land; farm dwellings and employee housing.  A landowner whose agricultural lands are designated as important agricultural lands may develop, construct, and maintain farm dwellings and employee housing for farmers, employees, and their immediate family members on these lands; provided that:

     (1)  The farm dwellings and employee housing units shall be used exclusively by farmers and their immediate family members who actively and currently farm on important agricultural land upon which the dwelling is situated; provided further that the immediate family members of a farmer may live in separate dwelling units situated on the same designated land;

     (2)  Employee housing units shall be used exclusively by employees and their immediate family members who actively and currently work on important agricultural land upon which the housing unit is situated; provided further that the immediate family members of the employee shall not live in separate housing units and shall live with the employee;

     (3)  The total land area upon which the farm dwellings and employee housing units and all appurtenances are situated shall not occupy more than five per cent of the total important agricultural land area controlled by the farmer or the employee's employer or fifty acres, whichever is less;

     (4)  The farm dwellings and employee housing units shall meet all applicable building code requirements;

     (5)  Notwithstanding section 205-4.5(a)(12), the landowner shall not plan or develop a residential subdivision on the important agricultural land;

     (6)  Consideration may be given to the cluster development of farm dwellings and employee housing units to maximize the land area available for agricultural production; and

     (7)  The plans for farm dwellings and employee housing units shall be supported by agricultural plans that are approved by the department of agriculture."]

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and permit proceedings begun before its effective date under the use and district standards for the state agricultural land use district and underlying county zoning.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 3000.

Report Title:

Important Agricultural Lands; Important Agricultural Lands Incentive; Farm Cluster Housing; County Ordinances

Description:

Establishes an important agricultural lands incentive to provide alternative means to develop housing for farmers and farm employees.  Authorizes a landowner or lessee of important agricultural lands to apply to a county for a permit allowing the landowner or lessee to develop, construct, and maintain farm cluster housing.  Requires each county to enact ordinances to allow farm cluster housing on important agricultural lands.  Establishes requirements for farm cluster housing.  Repeals existing requirements for farm dwellings and employee housing on important agricultural lands.  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 IMPORTANT AGRICULTURAL LANDS.

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

     SECTION 1.  The legislature finds that in 2008, the legislature passed incentives intended to promote agricultural viability, sustained growth of the agricultural industry, and the long-term use and protection of lands designated as important agricultural lands.

     Act 233, Session Laws of Hawaii 2008, included a provision for landowners to develop, construct, and maintain farm dwellings and employee housing for farmers, employees, and their immediate family members on lands designated as important agricultural lands, provided that occupants of these dwellings are actively engaged in farming.  Although this provision was intended as an incentive for the designation and agricultural use of important agricultural lands, it is unclear whether this provision, as codified in section 205-45.5, Hawaii Revised Statutes, also imposes additional restrictions on farm dwellings and employee housing on important agricultural lands.

     The legislature recognizes that the lack of affordable housing for farmers and farm employees is an impediment to increasing food and non-food agricultural production in Hawaii.  There is still a need to develop housing for farmers and farm employees on lands designated as important agricultural lands that both reduces the cost and time required to supply such housing and ensures that the housing is used in conjunction with, and located on, an active farm and is occupied by bona fide farmers or farm employees.

     The purposes of this Act are to:

     (1)  Establish an important agricultural lands incentive to facilitate the development of farm cluster housing for farmers, farm employees, and their immediate family members;

     (2)  Include farm cluster housing under a priority permit processing procedure for facilities on lands designated as important agricultural lands; and

     (3)  Repeal the existing requirements for farm dwellings and employee housing on important agricultural lands to eliminate any restrictions that may be stricter than what is allowed under the existing definition of a farm dwelling.

     SECTION 2.  Chapter 205, Hawaii Revised Statutes, is amended by adding to part III a new section to be appropriately designated and to read as follows:

     "§205-     Important agricultural lands incentive; farm cluster housing.  (a)  There is established an important agricultural lands incentive to provide an alternative means to develop housing for farmers and farm employees who actively and currently farm lands that are designated as important agricultural lands.  The incentive shall be used to support development of farmer and farm employee housing that reduces costs and time while ensuring that the housing developed does not contribute to the loss of agricultural land to non‑agricultural residential uses or residential sprawl.

     (b)  Notwithstanding section 205-51(b) and any other law to the contrary, a landowner or lessee of lands that are designated as important agricultural lands may apply to a county for a permit, in a form to be determined by the county, that allows the landowner or lessee to develop, construct, and maintain farm cluster housing on the lands for rent to farmers and farm employees who actively and currently farm on important agricultural lands and their immediate family members.

     (c)  Each county shall enact ordinances to allow farm cluster housing on important agricultural lands.  The ordinances shall provide for:

     (1)  Conformance with the conditions in subsection (d);

     (2)  Exemption from subdivision of the land and other county subdivision ordinances;

     (3)  Priority review and processing pursuant to section 205-46.5;

     (4)  The development of more units per lot than allowed by the underlying county zoning; and

     (5)  The submission to the county of the landowner or lessee's agricultural plan or agricultural business plan supporting the development of farm cluster housing and providing evidence of a real property tax agricultural dedication granted by the county.  The agricultural plan and agricultural tax dedication verification shall be submitted to the appropriate county agency for review and comment and may be submitted by the county to the department of agriculture for review and comment, before any county action on the application.

     (d)  Farm cluster housing shall be subject to the following conditions:

     (1)  Farm cluster housing shall be allowed only on lots of record that are at least ten acres;

     (2)  All farm cluster housing units shall be leased or rented to a farmer or farm employee who is farming the important agricultural lands upon which the farm cluster housing is situated.  This restriction shall be stated in any applicable rental documents;

     (3)  The total land area upon which the farm cluster housing units and all appurtenances are situated shall occupy an area that is the lesser of:

          (A)  A contiguous block or area no more than five per cent of the lot of record; or

          (B)  A contiguous block or area not to exceed ten acres;

     (4)  The farm cluster housing units shall meet all applicable building code requirements and infrastructure requirements and standards necessary to ensure safe and healthful occupancy;

     (5)  The farm cluster housing units shall not be used for short-term vacation rentals;

     (6)  The landowner or master lessee shall be responsible for ensuring compliance with the occupancy requirement set forth in subsection (d)(1) and the restriction on use set forth in subsection (d)(5); and

     (7)  If farm cluster housing units are vacated as a result of the cessation of any agricultural operations on the important agricultural lands, the landowner or master lessee may rent the farm cluster housing units under the same restrictions imposed by this section to a farmer or farm employee of a bona fide farming operation, as defined in section 165-2, on other agricultural lands, whether or not those lands have been designated as important agricultural lands.

     (e)  The officer or agency charged with the administration of county zoning laws within each county shall enforce the building and use restrictions in this section and impose penalties for violations of any provision of this section or of any related county permit.

     (f)  Farm dwellings and employee housing units on lands designated as important agricultural lands that are not processed as farm cluster housing pursuant to this section shall be subject to all applicable state laws, county ordinances, and rules.

     (g)  As used in this section, "farm cluster housing" means an agricultural housing development that concentrates farm dwellings and farm employee housing units and shared infrastructure in a compact area within the larger lot and minimizes the land area occupied by the housing development."

     SECTION 3.  Section 205-46.5, Hawaii Revised Statutes, is amended by amending its title and subsection (a) to read as follows:

     "[[]§205-46.5[]]  Agricultural processing facilities; farm cluster housing; permits; priority.  (a)  Any agency subject to this chapter or title 13 that issues permits for:

     (1)  Agricultural processing facilities that process crops or livestock from an agribusiness; or

     (2)  Farm cluster housing developed pursuant to section 205-   ;

shall establish and implement a procedure for the priority processing of those permit applications and renewals, at no additional cost to the applicant[, for agricultural processing facilities that process crops or livestock from an agribusiness]; provided that the majority of the lands held, owned, or used by the agribusiness or farm cluster housing applicant shall be land designated as important agricultural lands pursuant to this part, excluding lands held, owned, or used by the agribusiness or applicant in a conservation district.

     Any priority permit processing procedure established pursuant to this section shall not provide or imply that any permit application filed under the priority processing procedure shall be automatically approved."

     SECTION 4.  Section 205-45.5, Hawaii Revised Statutes, is repealed.

     ["[§205-45.5]  Important agricultural land; farm dwellings and employee housing.  A landowner whose agricultural lands are designated as important agricultural lands may develop, construct, and maintain farm dwellings and employee housing for farmers, employees, and their immediate family members on these lands; provided that:

     (1)  The farm dwellings and employee housing units shall be used exclusively by farmers and their immediate family members who actively and currently farm on important agricultural land upon which the dwelling is situated; provided further that the immediate family members of a farmer may live in separate dwelling units situated on the same designated land;

     (2)  Employee housing units shall be used exclusively by employees and their immediate family members who actively and currently work on important agricultural land upon which the housing unit is situated; provided further that the immediate family members of the employee shall not live in separate housing units and shall live with the employee;

     (3)  The total land area upon which the farm dwellings and employee housing units and all appurtenances are situated shall not occupy more than five per cent of the total important agricultural land area controlled by the farmer or the employee's employer or fifty acres, whichever is less;

     (4)  The farm dwellings and employee housing units shall meet all applicable building code requirements;

     (5)  Notwithstanding section 205-4.5(a)(12), the landowner shall not plan or develop a residential subdivision on the important agricultural land;

     (6)  Consideration may be given to the cluster development of farm dwellings and employee housing units to maximize the land area available for agricultural production; and

     (7)  The plans for farm dwellings and employee housing units shall be supported by agricultural plans that are approved by the department of agriculture."]

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and permit proceedings begun before its effective date under the use and district standards for the state agricultural land use district and underlying county zoning.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval.

Report Title:

Important Agricultural Lands; Important Agricultural Lands Incentive; Farm Cluster Housing; Priority Permit Processing; Counties; County Ordinances

Description:

Repeals the provision authorizing farm dwellings and farm employee housing on important agricultural lands, amends the provision for priority permit processing to include farm cluster housing, and adopts a new provision establishing farm cluster housing to incentivize the designation of lands as important agricultural lands pursuant to chapter 205, HRS.

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.  644

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1013

      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. 1013, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO IMPORTANT AGRICULTURAL LANDS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish an Important Agricultural Lands incentive to provide alternative means to develop housing for farmers and farm employees;

(2)  Authorize a landowner or lessee of Important Agricultural Lands to apply to a county for a permit allowing the landowner or lessee to develop, construct, and maintain farm cluster housing;

     (3)  Require each county to enact ordinances to allow farm cluster housing on Important Agricultural Lands;

     (4)  Establish requirements for farm cluster housing; and

     (5)  Repeal existing requirements for farm dwellings and employee housing on Important Agricultural Lands.

     Your Committee received testimony in support of this measure from the Department of Agriculture; Department of Business, Economic Development, and Tourism; Hawaii Housing Finance and Development Corporation; Office of Planning & Sustainable Development; Hawaiʻi Farm Bureau; ʻĀina Design Corp; and Hawaiʻi Food+ Policy.  Your Committee received comments on this measure from the Land Use Commission; Kunia Village Title Holding Corporation; and one individual.

     Your Committee finds that the lack of affordable and accessible housing for farmers and farm employees remains a significant barrier to expanding Hawaii's agricultural industry and increasing local food production.  While Act 233, Session Laws of Hawaii 2008, provided an incentive for farm dwellings and employee housing on Important Agricultural Lands, concerns have arisen regarding unclear restrictions and the need for better-aligned housing solutions.  By balancing the need for affordable farmworker housing with the preservation of Hawaii's most productive agricultural lands, this measure strengthens agricultural viability, promotes food security, and provides long-term stability for farmers and their families.

     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. 1013, H.D. 1, and recommends that it be referred to your Committee on Finance.

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

STAND. COM. REP. NO.  216

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1013

      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 Housing, to which was referred H.B. No. 1013 entitled:

"A BILL FOR AN ACT RELATING TO IMPORTANT AGRICULTURAL LANDS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish an important agricultural lands incentive to provide alternative means to develop housing for farmers and farm employees;

     (2)  Authorize a landowner or lessee of important agricultural lands to apply to a county for a permit allowing the landowner or lessee to develop, construct, and maintain farm cluster housing;

     (3)  Require each county to enact ordinances to allow farm cluster housing on important agricultural lands;

     (4)  Establish requirements for farm cluster housing; and

     (5)  Repeal existing requirements for farm dwellings and employee housing on important agricultural lands.

     Your Committee received testimony in support of this measure from the Department of Agriculture; Department of Business, Economic Development, and Tourism; Hawaii Housing Finance and Development Corporation; Office of Planning and Sustainable Development; Agribusiness Development Corporation; Hawaiʻi Food+ Policy; Hawaiʻi Farmers Union United; and Hawaiʻi Farm Bureau.  Your Committee received comments on this measure from the Land Use Commission and Department of Planning and Permitting of the City and County of Honolulu.

     Your Committee finds that Act 233, Session Laws of Hawaii 2008, was enacted as an incentive to establish and sustain viable agricultural operations on important agricultural lands by allowing the development of certain farm dwellings and employee housing.  However, this law created uncertainties about whether farm dwellings and employee housing on important agricultural lands were subject to additional restrictions.  This measure will streamline the development of housing on important agricultural lands by providing an option for farm cluster housing, which will reduce development and infrastructure costs of such housing, reduce the footprint and amount of agricultural land used for housing, and ensure that the housing is occupied by bona fide farmers and farm employees.

     Your Committee has amended this measure by:

     (1)  Including a definition for "short-term vacation rental", as that term and similar terms are used in the applicable county ordinance;

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

     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1013, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1013, H.D. 1, and be referred to your Committee on Agriculture & Food Systems.

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