SB 1003: RELATING TO AGRICULTURAL DEVELOPMENT.

A BILL FOR AN ACT

RELATING TO AGRICULTURAL DEVELOPMENT.

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

     SECTION 1.  The legislature finds that Kau, on Hawaii island, has long been a cornerstone of the State's agricultural heritage.  Following the decline of the region's large-scale sugar plantations in the 1990s, Kau has successfully transitioned to a home of a diverse range of agricultural enterprises, including fruit and vegetable farming, coffee cultivation, macadamia nut production, and livestock grazing.

     The legislature further finds that Kau's fertile lands, coupled with its farmers' resilience and adaptability, uniquely position the region to enhance the State's agricultural resilience and contribute meaningfully to the State's food security.  Despite these strengths, Kau's steadfast independence and self-reliance have often led to the region being overlooked for state assistance in farming initiatives.

     The legislature also finds that to address this disparity, it is necessary for the agribusiness development corporation (ADC) to acquire agricultural land in Kau to be used to support local farmers.  Doing so will strengthen local farming operations, promote sustainable agriculture, and advance the objectives of the ADC.

     The legislature further finds that the ADC's mission is to acquire and manage, in partnership with farmers, ranchers, and aquaculture groups, selected high-value lands, water systems, and infrastructure for commercial agricultural use and to direct research into areas that will lead to the development of new crops, markets, and lower production costs.

     The legislature believes that, given the unique history of the community of Kau, robust community outreach and legislative oversight are critical to ensuring that the community's needs and aspirations are fully considered.  Therefore, engaging community in discussions regarding the role of the ADC will help identify the specific types of support, resources, and initiatives that align with the goals of local farmers and uphold the values of the region.

     The legislature also finds that the ADC is uniquely equipped to provide critical support to farmers in the region through land leasing options, increased agricultural production, access to strategic resources, workforce development, infrastructure enhancements, land preservation, and overall economic growth, while ensuring that local lands remain in local hands by preventing acquisition by foreign buyers.

     Accordingly, the purpose of this Act is to authorize the issuance of general obligations bonds to the ADC to finance the purchase of a parcel of land located in Kau, identified as tax map key:  (3) 9-6-5:63, for agricultural development.

     SECTION 2.  The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2025-2026 for the purpose of financing the purchase of a parcel of land identified as tax map key:  (3) 9‑6‑5:63 from the Ellis Jacob Hester Trust, its fee owner, for agricultural development.

     SECTION 3.  The sum appropriated in section 2 of this Act shall be expended by the agribusiness development corporation for the purposes of this Act.

     SECTION 4.  The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2028, shall lapse as of that date.

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

ADC; Kau; GO Bonds; Appropriation

Description:

Authorizes the issuance of general obligation bonds to the Agribusiness Development Corporation for the purchase of a land parcel in Kau for agricultural development.  Effective 7/1/2050.  (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 agricultural Development.

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

     SECTION 1.  The legislature finds that Kaʻū, on Hawaiʻi island, has long been a cornerstone of the State's agricultural heritage.  Following the decline of the region's large-scale sugar plantations in the 1990s, Kaʻū has successfully transitioned to a diverse range of agricultural enterprises, including fruit and vegetable farming, coffee cultivation, macadamia nut production, and livestock grazing.

     The legislature further finds that Kaʻū's fertile lands, coupled with its farmers' resilience and adaptability, uniquely position the region to enhance the State's agricultural resilience and contribute meaningfully to the State's food security.  Despite these strengths, Kaʻū's steadfast independence and self-reliance have often led to the region being overlooked for state assistance in farming initiatives.

     The legislature also finds that to address this disparity and support local farmers, it is necessary to acquire agricultural land in Kaʻū.  Doing so will strengthen local farming operations, promote sustainable agriculture, and advance the objectives of the agribusiness development corporation (ADC).

     The legislature further finds that the ADC's mission is to acquire and manage, in partnership with farmers, ranchers, and aquaculture groups, selected high-value lands, water systems, and infrastructure for commercial agricultural use and to direct research into areas that will lead to the development of new crops, markets, and lower production costs.

     The legislature believes that, given the unique history of the community of Kaʻū, robust community outreach and legislative oversight are critical to ensuring that the community's needs and aspirations are fully considered.  Therefore, engaging community in discussions regarding the role of the ADC will help identify the specific types of support, resources, and initiatives that align with the goals of local farmers and uphold the values of the region.

     The legislature also finds that the ADC is uniquely equipped to provide critical support to farmers in the region through land leasing options, increased agricultural production, access to strategic resources, workforce development, infrastructure enhancements, land preservation, and overall economic growth, while ensuring that local lands remain in local hands by preventing acquisition by foreign buyers.

     Accordingly, the purpose of this Act is to authorize the issuance of general obligations bonds to the agribusiness development corporation to finance the purchase of a parcel of land in located in Kaʻū for agricultural development identified as tax map key: (3) 9-6-5:63.

     SECTION 2.  The director of finance is authorized to issue general obligation bonds in the sum of $2,931,960 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2025-2026 for the purpose of financing the purchase of a parcel of land for agricultural development identified as tax map key: (3) 9‑6‑5:63.

     SECTION 3.  The sum appropriated in section 2 of this Act shall be expended by the agribusiness development corporation for the purposes of this Act.

     SECTION 4.  The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2028, shall lapse as of that date.

     SECTION 5.  This Act shall take effect on July 1, 2025.

Report Title:

ADC; Kau; GO Bonds; Appropriation

Description:

Authorizes the issuance of general obligation bonds to the Agribusiness Development Corporation for the purchase of a land parcel in Kau for agricultural development.

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. 393

Honolulu, Hawaii

RE:    S.B. No. 1003

       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 S.B. No. 1003 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURAL DEVELOPMENT,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the issuance of general obligation bonds for the Agribusiness Development Corporation (ADC) to purchase a land parcel in Kau for agricultural development.

     Your Committee received testimony in support of this measure from the Synergistic Hawaiʻi Agriculture Council; Kaʻu Coffee Growers Cooperative; United Kaʻu Farmers Cooperative; Island Harvest Inc.; Hawaii Floriculture and Nursery Association; Kaʻu Ocean Vista Coffee Estate; Rusty's Hawaiian, Isla Custom Coffees; and three individuals.

     Your Committee received comments on this measure from the Agribusiness Development Corporation and Hawaiʻi Farm Bureau.

     Your Committee finds that Kau, on Hawaii island, has long been a cornerstone of the State's agricultural heritage, successfully diversifying farming and agricultural activities in the twenty-first century.  A key region for agricultural stability, Kau has the potential to increase Hawaii's food security and resiliency.  Your Committee believes that there is a current disparity in support to local farmers and agricultural workers, particularly in state assistance to Kau.  This state assistance can be best actualized through the ADC, under the Department of Business, Economic Development, and Tourism, due to their clear mandate of providing key support, resources, and initiatives to local farmers throughout the State.  This measure will bolster Kau by authorizing the issuance of general obligation funds for the ADC to purchase agricultural land in Kau to provide critical support to farms in the region.

     Your Committee has amended this measure by:

     (1)  Specifying the name of the fee owner of the property to be acquired by ADC;

     (2)  Inserting a blank general obligation bonds issuance and appropriation amount;

     (3)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

     Your Committee notes that this measure, as amended, contains an unspecified general obligation bonds issuance and appropriation amount.  Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider inserting an amount of $2,931,960.

     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 S.B. No. 1003, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1003, 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,