HB 502: RELATING TO LAND USE.

A BILL FOR AN ACT

RELATING TO LAND USE.

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

     SECTION 1.  The legislature finds that small lot subdivisions exist in agricultural districts within each county that may be more appropriately placed within rural districts.  Many of these lots were created for speculative purposes before the enactment of the state land use law in 1961.

     The legislature further finds that the counties have an interest in redistricting these lands as they may contain lots and uses that are non-conforming or lots of insufficient size to support commercial agricultural use.  Currently, the ability of the counties to ensure the appropriate use of lands within agricultural districts is inhibited by the need to account for these non-conforming uses.

     Therefore, the purpose of this Act is to temporarily allow each county to petition for the redistricting of land from an agricultural district to a rural district through the land use commission's declaratory ruling process.

     SECTION 2.  (a)  Between July 1, 2026, and June 30, 2029, any county, by resolution of its county council, may submit a petition to the land use commission, established by chapter 205, Hawaii Revised Statutes, for the redistricting of land from an agricultural district to a rural district if the following requirements are met:

     (1)  The land has not been designated as important agricultural lands pursuant to chapter 205, part III, Hawaii Revised Statutes;

     (2)  The land has been:

          (A)  Developed for single-family residences that are currently in the agricultural district; and

          (B)  Subdivided into lots that are no larger than one acre in size;

     (3)  The land is part of an existing agricultural subdivision consisting of ten or more contiguous lots;

     (4)  A single-family residence is constructed on each lot, or the lot is part of an agricultural subdivision intended for single-family residential construction;

     (5)  The requirements of chapter 343, Hawaii Revised Statutes, if applicable, are met at the time of redistricting;

     (6)  The redistricting would not adversely affect the ability of any lots included within the petition or any neighboring lands to be used for agricultural purposes;

     (7)  The area petitioned for redistricting is supported by the applicable county plan;

     (8)  The applicable county council provides written notice of the council's public hearing to each owner of each lot proposed to be included in the petition at least fifteen days before the hearing; and

     (9)  The office of planning and sustainable development has reviewed and provided a recommendation on the petition with regard to the State's interests.

     (b)  The land use commission shall process petitions under subsection (a) for declaratory order within three hundred sixty-five days from the petition being deemed complete.  If the land use commission finds that there is insufficient evidence presented by the applicable county council or that significant public trust issues are presented by the petition, the land use commission may deny the petition in whole or in part.

     (c)  Lots included in a petition denied by the land use commission may be considered for inclusion in future county council petitions submitted within the effective period of subsection (a).

     (d)  The land use commission shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to implement this Act.

     SECTION 3.  This Act shall take effect on July 1, 3000, and shall be repealed on June 30, 2029.

Report Title:

LUC; Counties; Petition; Redistricting; Declaratory Order

Description:

Temporarily allows each county, by resolution of its county council, to petition for the redistricting of land from an agricultural district to a rural district through the Land Use Commission's declaratory ruling process.  Effective 7/1/3000.  Sunsets 6/30/2029.  (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 LAND USE.

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

     SECTION 1.  The legislature finds that small lot subdivisions exist in agricultural districts within each county that may be more appropriately placed within rural districts.  Many of these lots were created for speculative purposes before the enactment of the state land use law in 1961.

     The legislature further finds that the counties have an interest in redistricting these lands as they may contain lots and uses that are non-conforming or lots of insufficient size to support commercial agricultural use.  As a result, the ability of the counties to ensure the appropriate use of lands within agricultural districts is inhibited by the need to account for these non-conforming uses.

     Therefore, the purpose of this Act is to temporarily allow each county to petition for the redistricting of land from an agricultural district to a rural district through the land use commission's declaratory ruling process.

     SECTION 2.  (a)  Between July 1, 2026, and June 30, 2029, any county, by resolution of its county council, may submit a petition to the land use commission, established by chapter 205, Hawaii Revised Statutes, for the redistricting of land from an agricultural district to a rural district if the following requirements are met:

     (1)  The land has been:

          (A)  Developed for single-family residences that are currently in the agricultural district; and

          (B)  Subdivided into lots that are no larger than one acre in size;

     (2)  The land is part of an existing agricultural subdivision consisting of ten or more contiguous lots;

     (3)  A single-family residence is constructed on each lot, or the lot is part of an agricultural subdivision intended for single-family residential construction;

     (4)  The requirements of chapter 343, Hawaii Revised Statutes, if applicable, are met at the time of redistricting;

     (5)  The redistricting would not adversely affect the ability of any lots included within the petition or any neighboring lands to be used for agricultural purposes;

     (6)  The area petitioned for redistricting is supported by the applicable county plan;

     (7)  The applicable county council provides written notice of the council's public hearing to each owner of each lot proposed to be included in the petition at least fifteen days before the hearing; and

     (8)  The office of planning and sustainable development has reviewed and provided a recommendation on the petition with regard to the State's interests.

     (b)  The land use commission shall process petitions under subsection (a) for declaratory order within three hundred sixty-five days from the petition being deemed complete.  If the land use commission finds that there is insufficient evidence presented by the applicable county council or that significant public trust issues are presented by the petition, the land use commission may deny the petition in whole or in part.

     (c)  Lots included in a petition denied by the land use commission may be considered for inclusion in future county council petitions submitted within the effective period of subsection (a).

     (d)  The land use commission shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to implement this Act.

     SECTION 3.  This Act shall take effect on July 1, 2026, and shall be repealed on June 30, 2029.

Report Title:

LUC; Counties; Petition; Redistricting; Declaratory Order

Description:

Temporarily allows each county, by resolution of its county council, to petition for the redistricting of land from an agricultural district to a rural district through the Land Use Commission's declaratory ruling process.  Effective 7/1/2026.  Sunsets 6/30/2029.

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.  303

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 502

      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 Water & Land, to which was referred H.B. No. 502 entitled:

"A BILL FOR AN ACT RELATING TO LAND USE,"

begs leave to report as follows:

     The purpose of this measure is to temporarily allow each county to petition for the redistricting of land from an agricultural district to a rural district through the Land Use Commission's declaratory ruling process.  

     Your Committee received testimony in support of this measure from one member of the Hawai‘i County Council; Hawai‘i Association of REALTORS; Hawai‘i Farm Bureau; Hawai‘i Farmers Union.  Your Committee received comments on this measure from the Department of the Attorney General; Department of Agriculture; Office of Planning and Sustainable Development; and Land Use Commission.

     Your Committee finds that there are small lot subdivisions within agricultural districts in each county that may be more appropriately placed within rural districts.  Your Committee further finds that these lots were originally created for speculative purposes prior to 1961 and currently inhibit the ability of the counties to ensure appropriate use of lands within agricultural districts.  Your Committee believes that providing the counties with a time-limited opportunity to petition the Land Use Commission to issue a declaratory ruling to reclassify these lands will better enable the State and counties to separate non-farm residential uses from bona fide farming to reduce pressure on the State's limited productive agricultural lands.

     Your Committee has amended this measure by:

     (1)  Excluding important agricultural lands from the redistricting process;

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

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

     Your Committee respectfully requests your Committee on Judiciary & Hawaiian Affairs, should it deliberate on this measure, to consider whether a requirement should be added to consider the agricultural viability, which may be measured by soil productivity rating, of the agricultural lands that could be redistricted using the process proposed by this measure.

     As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 502, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 502, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Water & Land,