SB 2170: ADC; North Kohala; GO Bonds; Agriculture; Agricultural Development; Appropriation

A BILL FOR AN ACT

RELATING TO THE NORTH KOHALA KYNNERSLY EAST SITE LAND PARCEL.

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

     SECTION 1.  The legislature finds that a robust agricultural sector is integral to the State's long-term economic stability, food security, and environmental stability.  A strong agricultural sector is essential for reducing the State's reliance on imported goods, preserving its cultural heritage, and providing local employment opportunities.  The north Kohala district of Hawaii island, with its unique climate, fertile soils, and abundant natural resources presents an invaluable opportunity for strategic investment in the State's agricultural sector.  While the agricultural legacy of north Kohala continues to thrive with a greater emphasis on sustainable farming practices, important parcels of land for agricultural production and processing in the region have remained defunct for extended periods as the agricultural sector has contracted due to shifts in markets and key funding mechanisms.

     The legislature further finds that farmers local to the region and agricultural organizations are committed to preserving north Kohala's unique heritage, while embracing innovative practices to ensure the long-term viability of farming in the area.  Efforts to improve water conservation, restore native ecosystems, and protect the region's agricultural land are central to the community's ongoing resilience.  Investment in this region can enhance the State's agricultural production capacity; support small, family-run and -owned farms; and contribute to the revitalization of a rural and historically underserved area.  Investment in agricultural land in north Kohala offers significant potential for the development of sustainable agricultural practices, creation of job opportunities, and increased food self-sufficiency.  Such investments in this region, and regions that are similar in composition and rural location, align with the State's broader goals of promoting environmental stewardship and ensuring the long-term viability of its agricultural sector.

     The legislature also finds that the agribusiness development corporation is uniquely positioned to oversee the purchase, management, and responsible development of agricultural lands in this region.  The agribusiness development corporation's expertise will ensure that these strategic investments are maximized for the benefit of the State's agricultural sector and rural communities, and will foster resilience and sustainability for generations to come.

     Accordingly, the purpose of this Act is to authorize the issuance of general obligation bonds to the agribusiness development corporation to complete the purchase of the fee simple interest in the north Kohala Kynnersly east site land parcel which comprises the following tax map keys: (3) 5-3-4:19, (3) 5-4-11:18, and (3) 5-4-11:48.

     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 2026-2027 for the purpose of financing the purchase of parcels of land for agricultural development identified as the following tax map keys: (3) 5-3-4:19, (3) 5-4-11:18, and (3) 5-4-11:48.

     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; North Kohala; GO Bonds; Agriculture; Agricultural Development; Appropriation

Description:

Authorizes the issuance of general obligation bonds for the Agribusiness Development Corporation to purchase the North Kohala Kynnersly East Site Land Parcel 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 the north kohala kynnersly east site land parcel.

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

     SECTION 1.  The legislature finds that a robust agricultural sector is integral to the State's long-term economic stability, food security, and environmental stability.  A strong agricultural sector is essential for reducing the State's reliance on imported goods, preserving its cultural heritage, and providing local employment opportunities.  The north Kohala district of Hawaii island, with its unique climate, fertile soils, and abundant natural resources presents an invaluable opportunity for strategic investment in the State's agricultural sector.  While the agricultural legacy of north Kohala continues to thrive with a greater emphasis on sustainable farming practices, important parcels of land for agricultural production and processing in the region have remained defunct for extended periods as the agricultural sector has contracted due to shifts in markets and key funding mechanisms.

     The legislature further finds that farmers local to the region and agricultural organizations are committed to preserving north Kohala's unique heritage, while embracing innovative practices to ensure the long-term viability of farming in the area.  Efforts to improve water conservation, restore native ecosystems, and protect the region's agricultural land are central to the community's ongoing resilience.  Investment in this region can enhance the State's agricultural production capacity; support small, family-run and -owned farms; and contribute to the revitalization of a rural and historically underserved area.  Investment in agricultural land in north Kohala offers significant potential for the development of sustainable agricultural practices, creation of job opportunities, and increased food self-sufficiency.  Such investments in this region, and regions that are similar in composition and rural location, align with the State's broader goals of promoting environmental stewardship and ensuring the long-term viability of its agricultural sector.

     The legislature also finds that the agribusiness development corporation is uniquely positioned to oversee the purchase, management, and responsible development of agricultural lands in this region.  The agribusiness development corporation's expertise will ensure that these strategic investments are maximized for the benefit of the State's agricultural sector and rural communities, and will foster resilience and sustainability for generations to come.

     Accordingly, the purpose of this Act is to authorize the issuance of general obligation bonds to the agribusiness development corporation to complete the purchase of the fee simple interest in the north Kohala Kynnersly east site land parcel which comprises the following tax map keys: (3) 5-3-4:19, (3) 5-4-11:18, and (3) 5-4-11:48.

     SECTION 2.  The director of finance is authorized to issue general obligation bonds in the sum of $2,600,000 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 2026-2027 for the purpose of financing the purchase of parcels of land for agricultural development identified as the following tax map keys: (3) 5-3-4:19, (3) 5-4-11:18, and (3) 5-4-11:48.

     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, 2026.

Report Title:

ADC; North Kohala; GO Bonds; Agriculture; Agricultural Development; Appropriation

Description:

Authorizes the issuance of general obligation bonds for the Agribusiness Development Corporation to purchase the North Kohala Kynnersly East Site Land Parcel 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. 2189

Honolulu, Hawaii

RE:     S.B. No. 2170

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Economic Development and Tourism, to which was referred S.B. No. 2170 entitled:

"A BILL FOR AN ACT RELATING TO THE NORTH KOHALA KYNNERSLY EAST SITE LAND PARCEL,"

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 to purchase the North Kohala Kynnersly East Site Land Parcel for agricultural development.

     Your Committee received testimony in support of this measure from the Agribusiness Development Corporation and Hawaiʻi Farm Bureau.

     Your Committee finds that strengthening the local agricultural sector is integral to achieving the State's food security and economic diversification goals.  Public acquisition of land parcels in North Kohala that are well-suited to diversified agriculture would promote local production, rural economic development, and long-term economic capacity.  This measure makes a strategic investment to improve the State's food system resilience, achieve institutional procurement goals, and enhance the State's agricultural export potential.

     Your Committee has amended this measure by:

     (1)  Changing the general obligation bonds authorization and appropriation amount from $2,600,000 to an unspecified amount to encourage further discussion on the measure; and

     (2)  Inserting an effective date of July 1, 2050, to encourage further discussion.

     Your Committee notes that this measure, as amended, contains an unspecified general obligation bonds authorization 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 $2,600,000 for the purpose of financing the purchase of parcels of land for agricultural development identified as tax map keys: (3) 5-3-4:19, (3) 5‑4‑11:18, and (3) 5-4-11:48.

     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. 2170, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2170, 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,