| 1 | 1 | | HOUSE OF REPRESENTATIVES H.B. NO. 255 THIRTY-SECOND LEGISLATURE, 2023 STATE OF HAWAII A BILL FOR AN ACT relating to agriculture. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: |
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| 3 | 3 | | HOUSE OF REPRESENTATIVES H.B. NO. 255 |
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| 4 | 4 | | THIRTY-SECOND LEGISLATURE, 2023 |
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| 5 | 5 | | STATE OF HAWAII |
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| 7 | 7 | | HOUSE OF REPRESENTATIVES |
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| 9 | 9 | | H.B. NO. |
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| 11 | 11 | | 255 |
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| 13 | 13 | | THIRTY-SECOND LEGISLATURE, 2023 |
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| 17 | 17 | | STATE OF HAWAII |
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| 31 | 31 | | A BILL FOR AN ACT |
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| 37 | 37 | | relating to agriculture. |
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| 43 | 43 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: |
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| 47 | 47 | | PART I SECTION 1. The legislature finds that the agribusiness development corporation was established in 1994 to address the issue of large tracts of land becoming available due to the downsizing of the sugar and pineapple industries. The legislature further finds that Hawaii now faces different issues in agriculture, mainly sustainable agriculture and local food production. According to the agribusiness development corporation's 2019 report to the legislature, the corporation manages over 22,000 acres of public agricultural lands with significant potential to shape the State's agricultural public policy toward the goal of food self-sufficiency. The lack of affordable agricultural land is cited as a key impediment to the growth and expansion of local agriculture. Moreover, the legislature finds that the lands under the jurisdiction of the agribusiness development corporation experience some of the heaviest and most frequent application of restricted use pesticides, according to mandatory restricted use pesticide usage data reported to the department of agriculture. Pesticides are prone to drift off target and therefore pose a threat to the public and environmental health of nearby communities. Industrial agricultural practices that rely heavily on conventional fertilizers and pesticides deplete soil health and productivity over time, thus diminishing the productivity of those lands for potential future tenants. The legislature additionally finds that the agribusiness development corporation lacks a clear process for decision making and a system of land management and record keeping. The purpose of this Act is to: (1) Establish, as the primary purpose of the agribusiness development corporation, supporting the achievement of local food self-sufficiency in a manner that is economically and environmentally sustainable; {2) Ensure the agribusiness development corporation coordinates and administers programs to reduce Hawaii's reliance on imported agricultural products, increases local production of agricultural products for local consumption, reduces the use of pesticides, and increases access to farmland and related infrastructure for local farmers and cooperatives; (3) Ensure that the agribusiness development corporation is managed by board members with knowledge of and experience in local food production and sustainable forms of agricultural production; and (4) Ensure transparency and accountability in the conduct of the agribusiness development corporation. PART II SECTION 2. Chapter 163D, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows: "§163D- Written policies and procedures; board oversight; application processes; property management; file and document management. (a) Within one year of the effective date of this section, the corporation shall develop written policies and procedures relating but not limited to: (1) Board oversight. The policies and procedures shall include, among other things: (A) The matters or types of matters that shall be presented to the board for information, consideration, or action; and (B) Criteria establishing the actions that the executive director may authorize without the board's approval, including powers delegated by the board to the executive director, if any, as well as the process to periodically review the delegated authority and the recording of actions taken by the board, which shall include, among other things, confirmation of the board's approvals, approvals with amendments, rejections, or deferrals; (2) Land and other corporation-owned property disposition application processes. The policies and procedures shall address, among other things, the internal processes for evaluating applications for use of corporation-owned property, including criteria upon which applications are evaluated. The corporation shall also maintain checklists to document completion of each step of the process, receipt of required information, and timely communication with the applicant; (3) Property management. The policies and procedures shall address, among other things, the process: (A) To confirm the receipt of all required documentation and other information, such as certificates or other evidence of compliance with federal and state requirements, performance bonds or other security, certificates, or other evidence of insurance; (B) For inspection of corporate properties, including the information or types of information that shall be documented and the frequency of inspections; (C) For enforcement of license, permit, and right-of-entry terms and conditions, including issuance of notices of default; (D) To evaluate the need for and type of security measures for a specific parcel; and (E) To document completion of required processes or activities; and (4) File and document management. The policies and procedures shall address, among other things: (A) The types of documents retained by the corporation and organization of those documents; (B) Staff responsibility for performing each file and document management task; (C) Document retention; and (D) Reporting of any release of personal information. §163D- Rules; application process; use of lands and other assets. Within one year of the effective date of this section, the corporation shall adopt rules to address, among other things: (1) The application process for the use of the corporation's land and other assets, including the corporation's process for evaluating applications; (2) The corporation's administration and enforcement of the terms and conditions of licenses, permits, rights of entry, and other conveyance instruments, including those relating to inspections, notices of default, termination, eviction, and appeal rights; (3) Criteria and other procedures to create subsidiaries; (4) Criteria and other procedures to coventure and invest directly in an agricultural enterprise; (5) Criteria and other procedures to apply and qualify for allowances and grants; (6) Criteria and other procedures to exercise the corporation's right of withdrawal from licenses, permits, and rights of entry; and (7) Criteria and other procedures to apply and qualify for rent credits. §163D- Production of agricultural products for local consumption; agricultural principles; soil testing. (a) To increase the production of agricultural products for local consumption within the State, the corporation shall prioritize entering into lease agreements designed to support such local production. The corporation shall, among other things: (1) Aggressively seek to locate potential lessees or licensees; (2) Disseminate information concerning the availability of suitable lands; and (3) Enter into leases or licenses of sufficient length, for land of an appropriate size, and at an appropriate cost to allow lessees and licensees an adequate opportunity to operate profitable enterprises. (b) The corporation shall: (1) Develop, support, or partner in programs that provide education, training, and financing, as necessary, to facilitate the success of its lessees and licensees; and (2) Ensure that such programs are available to meet the needs of smaller agricultural enterprises that serve the local market. (c) The corporation shall ensure that within five years of the effective date of this section, no less than eighty per cent of all lands within its inventory are leased or licensed for agricultural production. (d) The corporation shall ensure that within five years of the effective date of this section, substantially all production under at least fifty per cent of all of its leases and licenses are intended for local consumption and produced in accordance with the principles of organic farming, Korean natural farming, or biodynamic farming. As used in this subsection, "Korean natural farming" means an organic agricultural practice that takes advantage of indigenous microorganisms, such as bacteria, fungi, nematodes, and protozoa, to produce fertile soils that yield high output without the use of herbicides or pesticides. (e) The corporation shall ensure that within five years of the effective date of this section, at least twenty per cent of all leases and licenses of its lands are for parcels no greater than twenty acres. (f) The corporation shall ensure that within five years of the effective date of this section, the leases and licenses of at least twenty per cent of all lands within its inventory prohibit the use of any materials that do not comply with United States Department of Agriculture National Organic Program regulations, as set forth in title 7 Code of Federal Regulations part 205. (g) The corporation shall ensure that within five years of the effective date of this section, none of the lands within its inventory shall be leased or licensed to any agricultural enterprise that meets the definition of a concentrated animal feeding operation, as set forth by the United States Environmental Protection Agency in title 40 Code of Federal Regulations section 122.23. (h) The corporation shall test the soils of all of the lands it leases or licenses prior to occupancy. All leases or licenses of lands under the corporation's direct or indirect control shall contain provisions requiring that before the expiration of the lease or license or before the lessee or licensee vacates the leased or licensed property, the lessee or licensee shall procure the services of an independent third party to test the soil and remove any contaminants that exceed the levels that existed at the commencement of the term of the lease or license." PART III SECTION 3. Section 163D-1, Hawaii Revised Statutes, is amended to read as follows: "§163D-1 Findings and purpose. The legislature finds that the downsizing of the sugar and pineapple industries presented an unprecedented opportunity for the conversion of agriculture into a dynamic growth industry[. Within the next decade, the State can use public agricultural lands to] that will enhance the local economy, provide employment opportunities, decrease reliance on imported agricultural products, and provide more sources of locally grown food for residents. Thousands of acres of agricultural lands [and fifty million gallons per day of irrigation water were released by plantations. The downsizing of the sugar and pineapple industries idled and left] are vacant [a valuable inventory of supporting infrastructure including], and irrigation systems, roads, drainage systems, processing facilities, workshops, and warehouses [that] are [still largely] underutilized. The challenge to government and business is to continue to conserve and convert the arable lands and their associated production infrastructure in a timely manner into new productive agricultural uses. Aggressive and dynamic leadership can play a critically important role in promoting and developing agricultural enterprises, coordinating industry development, providing industry-wide services, providing marketing assistance, and facilitating investments and coventures in viable enterprises. The purpose of this chapter is to create a vehicle and process to make optimal use of agricultural assets for the economic, environmental, and social benefit of the people of Hawaii. This chapter establishes a public corporation to administer an aggressive and dynamic agribusiness development program. The [purposes] primary purpose of the corporation shall be to support the [production] achievement of local [agricultural products for local consumption] food self-sufficiency in a manner that is economically and environmentally sustainable [while continuing to develop commercial exports of locally produced agricultural products]. To further [these purposes,] this purpose, the corporation shall coordinate and administer programs to [assist agricultural enterprises to facilitate the transition of agricultural infrastructure from plantation operations into other agricultural enterprises,] reduce Hawaii's reliance on imported agricultural products; increase local production of agricultural products for local consumption[,]; reduce the [State's reliance on imported agricultural products, and] use of pesticides; increase access to farmland and related infrastructure for small local farmers and cooperatives[.]; and provide leadership for the development, financing, improvement, or enhancement of agricultural enterprises." SECTION 4. Section 163D-2, Hawaii Revised Statutes, is amended by amending the definition of "agriculture" to read as follows: ""Agriculture" means the production for local consumption within the State and exporting of plant and animal life on land and within ponds and other bodies of water for food, fiber, and raw materials for value-added products, and any agricultural enterprise or enterprises organized for the production of agricultural materials or value-added products [based on detailed marketing analysis and strategies] to exploit profitable potentials in local, national, and international markets, including general farming, [cane growing,] fruit growing, flower growing, aquaculture, growing of timber and forest products, apiary, grazing, dairying, and the production of any form of livestock or poultry, and their appurtenant services and facilities." SECTION 5. Section 163D-3, Hawaii Revised Statutes, is amended as follows: 1. By amending subsections (b) to (e) to read: "(b) The board of directors of the corporation shall consist of [eleven] fifteen voting members, of whom eight shall be appointed by the governor[.] pursuant to section 26-34. The terms of these eight members shall be four years; provided that[, commencing on July 1, 2005,] the governor shall reduce the terms of those [initially] appointed so as to provide, as nearly as can be, for the expiration of an equal number of terms at intervals of one year. The eight members shall be selected on the basis of their knowledge, experience, and proven expertise in small and large businesses within the agricultural industry, agricultural economics, banking, real estate, finance, promotion, marketing, local food production, [and] management[.], and native Hawaiian traditional and customary practices. Of these eight members[, one]: (1) One shall be from the city and county of Honolulu, one shall be from the county of Hawaii, one shall be from the county of Maui, one shall be from the county of Kauai, and four shall be appointed at-large[.]; (2) At least four shall have substantial experience in local food production; (3) At least two shall have substantial experience in organic and natural farming practices; and (4) At least one shall have demonstrated expertise in native Hawaiian traditional and customary practices, as evidenced by: (A) A college degree in a relevant field, such as Hawaiian studies, native Hawaiian law, native Hawaiian traditional and customary practices, or a related subject; (B) Work history that demonstrates an appropriate level of knowledge in native Hawaiian traditional and customary practices; or (C) Substantial experience as a native Hawaiian traditional and customary practitioner. The [director of business, economic development, and tourism; the] chairperson of the board of agriculture[; and the chairperson of the board of land and natural resources, or their], or the chairperson's designated [representatives,] representative, shall be [ex-officio,] an ex officio, voting [members] member of the board. Of the remaining voting members, one member each shall be selected by the chairperson of the board of trustees of the office of Hawaiian affairs; director of business, economic development, and tourism; chairperson of the board of land and natural resources; chancellor of the University of Hawaii West Oahu campus; Hawaii Farm Bureau; and Hawaii Farmers Union United. All members shall continue in office until their respective successors have been appointed and qualified. The board shall annually elect its chairperson from among its members; provided that the chairperson shall not be an [ex-officio] ex officio member. (c) The members of the board shall serve without compensation[,] but shall be reimbursed for actual expenses incurred in the performance of their duties. (d) The board shall appoint an executive director, who shall serve [at the pleasure of the board and shall] be exempt from [chapter] chapters 76[.] and 77. The salary of the executive director shall be set by the board. The executive director shall serve for a term of five years, unless terminated by the board before the end of the term, and no individual shall serve consecutive terms. (e) The board shall develop and document annual goals and performance measures for the executive director that allow the board to annually evaluate the executive director's [work] performance to ensure compliance by the corporation with statutory requirements and achievement of its statutory purposes[.], among other matters." 2. By amending subsection (h) to read: "(h) The board, through its executive director, may appoint officers, agents, and employees; prescribe their duties and qualifications; and fix their salaries, without regard to [chapter] chapters 76[.] and 77." SECTION 6. Section 163D-4, Hawaii Revised Statutes, is amended to read as follows: "§163D-4 Powers; generally. (a) Except as otherwise limited by this chapter, the corporation may: (1) Sue and be sued; (2) Have a seal and alter the same at its pleasure; (3) Make and alter bylaws for its organization and internal management; (4) Adopt rules under chapter 91 necessary to effectuate this chapter in connection with its projects, operations, and properties; (5) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter; (6) Acquire or contract to acquire by grant or purchase any real, personal, or mixed property or any interest therein for its immediate or future use for the purposes of this chapter; own, hold, improve, and rehabilitate any real, personal, or mixed property acquired, and sell, assign, exchange, transfer, convey, lease, or otherwise dispose of, or encumber the same; (7) By itself, or in partnership with qualified persons, acquire, construct, reconstruct, rehabilitate, improve, alter, or repair any infrastructure or accessory facilities in connection with any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of, or encumber any project; (8) In cooperation with the department of agriculture, pursuant to chapter 167, or otherwise through direct investment or coventure with a professional investor or enterprise or any other person, or otherwise, to acquire, construct, operate, and maintain water facilities for conveying, distributing, and transmitting water for irrigation and agricultural uses at rates or charges determined by the corporation; provided that: (A) This chapter shall not be construed to permit or allow the department of agriculture or any agribusiness development corporation to: (i) Amend or modify rights or entitlements to water as provided for by article XI, section 7, of the Constitution of the State of Hawaii, or the Hawaiian Homes Commission Act, 1920, as amended, and chapter 168; (ii) Diminish or abridge the traditional and customary rights of ahupuaa tenants who inhabited the Hawaiian Islands prior to 1778 under sections 1-1 and 7-1; and (iii) Impair, abridge, or terminate the legal rights or interests to water and its uses, whether by lease, easement, or other means, which are possessed or held by organizations whose primary purpose is to benefit people of Hawaiian ancestry; and (B) All usage of water shall be in accordance with chapter 174C and other applicable laws in the State; (9) Receive, examine, and determine the acceptability of applications of qualified persons for allowances or grants for the development of new crops and agricultural products, the expansion of established agricultural enterprises, and the altering of existing agricultural enterprises; (10) Coordinate its activities with any federal or state farm credit programs; (11) Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on the terms and conditions it deems advisable; (12) Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, in order to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice; (13) Procure insurance against any loss in connection with its property and other assets and operations in such amounts and from such insurers as it deems desirable; (14) Accept gifts or grants in any form from any public agency or any other source[;] that promotes the purposes of this chapter; provided that any private gifts or grants shall first be approved by the board and shall be promptly disclosed to the public; and (15) Do all things necessary or proper to carry out the purposes of this chapter. (b) The corporation shall [develop,] promote[,] and assist[, and market agricultural products] in the development of crops for local markets and local consumption[,] within the State as a first priority and [shall promote and assist in commercial] for export [of agricultural products.] as a second priority." SECTION 7. Section 163D-5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) The corporation shall prepare and post on its website the Hawaii agribusiness plan, which shall [define and establish] specifically describe the corporation's strategy for implementing the goals[, objectives, policies, and priority guidelines for its agribusiness development strategy.] and priorities of this chapter during the ensuing five years. As part of the preparation of the plan, the corporation shall engage with and seek input from stakeholders with experience in local food production, food systems planning, and organic and natural farming practices. The plan shall include but not be limited to: (1) An inventory of agricultural lands with suitable adequate water resources that are or will become available; provided that the inventory of agricultural lands under this paragraph shall be agricultural lands within the purview of the corporation that can be used to meet present and future agricultural production needs; (2) An inventory of available agricultural infrastructure, such as irrigation systems, drainage systems, processing facilities, and other accessory facilities, that are controlled by the corporation; and (3) Strategies for federal, state, county, and community stakeholder actions that will promote the development and enhancement of Hawaii's agricultural industries." SECTION 8. Section 163D-6, Hawaii Revised Statutes, is amended to read as follows: "§163D-6 Subsidiaries; establishment. (a) The corporation may exercise its powers through one or more subsidiary corporations. The corporation, by resolution, may direct any of its members, officers, or employees to organize a subsidiary corporation pursuant to either chapter 414 or chapter 414D; provided that the organization of a subsidiary corporation shall not adversely affect the federal tax status of the interest on any bonds issued to finance any project or project facility. The resolution shall prescribe the purposes for which the subsidiary corporation is established. The subsidiary corporation shall remain a subsidiary of the corporation as long as more than one-half of its voting shares are owned or held by the corporation, or a majority of its directors are designated by the corporation; provided that the corporation shall not convey or otherwise dispose of any subsidiary corporation or surrender the right to designate a majority of the directors of any subsidiary corporation if the sale or surrender has an adverse affect on the federal tax status of the interest on any bonds issued to finance any project or project facility. The subsidiary corporation may be operated, maintained, and enhanced at the full discretion of the corporation or its designee. [(b) If the corporation acquires the assets of a private or other corporation, then, notwithstanding any law to the contrary: (1) Neither the corporation nor any subsidiary corporation vested with the assets shall be subject to chapter 91 with respect to the assets; (2) Employees retained to operate the assets shall not be subject to chapter 76; (3) Assets constituting real property interest shall not be subject to chapter 171; (4) No investment, loan, or use of funds by the corporation or a subsidiary corporation vested with the assets shall be subject to chapter 42F or 103; and (5) Neither the corporation nor a subsidiary corporation vested with the assets shall constitute a public utility or be subject to the jurisdiction of the public utilities commission under chapter 269. (c)] (b) The corporation may transfer to any subsidiary corporation any moneys, any real, personal, or mixed property, or any project, in order to carry out the purposes of this chapter. Each subsidiary corporation shall have all the powers of the corporation." SECTION 9. Section 163D-7, Hawaii Revised Statutes, is amended to read as follows: "§163D-7 Agricultural projects; agricultural development plans. (a) The corporation may develop and implement agricultural projects where large tracts of agricultural land have been or will be taken out of productive agriculture or where, through detailed analysis, opportunities exist to exploit potential local, national, and international markets. (b) The corporation may initiate and coordinate the preparation of business and agricultural development plans for its projects. The plans shall include a proposal for the organization of the enterprise, a marketing information and strategy, the impact on existing agricultural operations throughout the State, and a recommendation for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any infrastructure or accessory facilities in connection with any project. (c) The corporation may enter into cooperative agreements with coordinating entrepreneurs or public agencies when the powers, services, and capabilities of the persons or agencies are deemed necessary and appropriate for the development and implementation of the business and agricultural development plans. [(d) The corporation may purchase, accept, and maintain permanent conservation easements, or transfer these easements to a qualified land trust in accordance with the federal Natural Resources Conservation Service farm and ranch lands protection program. (e) Notwithstanding any provision of this chapter to the contrary, when leasing corporation-controlled agricultural land, the corporation may contract with a financial institution chartered under chapter 412 or a federal financial institution, as defined under section 412:1-109, that transacts business in this State to provide lease management services. For the purposes of this subsection, "lease management services" includes the collection of lease rent and any other moneys owed to the corporation related to the lease of agricultural land under the corporation's control. (f)] (d) The agricultural planning activities of the corporation shall be coordinated with the county planning departments and the county land use plans, policies, and ordinances. [(g)] (e) The corporation may amend the business and agricultural development plans as may be necessary. [(h)] (f) Any undertaking by the corporation pursuant to this chapter shall be with the express written consent of the landowner or landowners directly affected." SECTION 10. Section 163D-8, Hawaii Revised Statutes, is amended by amending subsections (a) to (d) to read as follows: "(a) The corporation may [develop a project to] identify necessary project facilities within a project area. (b) [Unless and except as otherwise provided by law, whenever] Whenever the corporation undertakes, or causes to be undertaken, any project facility as part of a project, the cost of providing the project facilities shall be assessed against the real property in the project area specially benefiting from the project facilities. Subject to the express written consent of the landowners directly affected, the corporation shall determine the properties that will benefit from the project facilities to be undertaken and may establish assessment areas that include the properties specially benefiting from the project facilities. The corporation may issue and sell bonds in such amounts as may be authorized by the legislature to provide funds to finance the project facilities. The corporation shall fix the assessments against the real property specially benefited. (c) [Unless and except as otherwise provided by law, the] The corporation may adopt rules pursuant to chapter 91 to establish the method of undertaking and financing project facilities in a project area. (d) [Unless and except as otherwise provided by law, bonds] Bonds issued to provide funds to finance project facilities shall be secured solely by the real properties benefited or improved and the assessments thereon, or by the revenues derived from the project for which the bonds were issued, including reserve accounts and earnings thereon, insurance proceeds, and other revenues, or any combination thereof. The bonds may be additionally secured by the pledge or assignment of loans and other agreements or any note or other undertaking, obligation, or property held by the corporation. The bonds shall be issued according to and subject to the rules adopted pursuant to this section. Any other law to the contrary notwithstanding, in assessing real property for project facilities, the corporation shall assess the real property within a project area according to the special benefits conferred upon the real property by the project facilities. These methods may include assessment on a frontage basis or according to the area of real property within a project area, or any other assessment method that assesses the real property according to the special benefit conferred, or any combination thereof. No such assessment levies against real property specially benefited under this chapter shall constitute a tax on real property within the meaning of any law." SECTION 11. Section 163D-9, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) The corporation, with the approval of the governor, may issue, from time to time, revenue bonds in amounts not exceeding the total amount of bonds authorized to be issued by the legislature for the purpose of constructing, acquiring, remodeling, furnishing, and equipping any project facility, including the acquisition of the site thereof[; acquiring agricultural lands through purchase to sustain and preserve viable agricultural enterprises within a contiguous geographic area; or acquiring agricultural lands for the protection of agricultural lands, public land banking, or the promotion of farm ownership and diversified agriculture]." SECTION 12. Section 163D-15.6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) The agribusiness development corporation shall work toward obtaining commitments from landowners [in the leeward and central districts of Oahu] that their agricultural leases shall be for a duration of twenty or more years and shall not be amended or revoked to allow for a nonagricultural use of the land; provided that for lands in central Oahu acquired under Act 234, Session Laws of Hawaii 2008, the agricultural leases shall be for no more than fifty-five years." SECTION 13. Section 163D-19, Hawaii Revised Statutes, is amended to read as follows: "§163D-19 Annual report. (a) The corporation shall submit to the governor and the legislature, no later than twenty days prior to the convening of each regular session, a complete and detailed report of its plans and activities. The corporation shall also post the report on its website no later than twenty days prior to the convening of each regular session. (b) The following information shall be included in the annual report and shall be posted on the corporation's website: (1) The number of lots the corporation leased or [used,] licensed, by size and island; (2) The number of lots the corporation leased or [used,] licensed, by island, that contain protocols and conditions supporting specialty farm products; (3) The number of vacant parcels and unoccupied parcels in the leasing process, by island, including the parcel size, location, and date the parcel was last occupied by a tenant; and (4) A description of any lease or license sales or transfers approved by the [corporation,] department of business, economic development, and tourism, including: (A) A description of the type of farm products produced by the transferring lessee and the farm products to be produced by the accepting lessee on the leased lands; and (B) The date and description of the transferring lessee's last lease approved by the corporation." SECTION 14. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 15. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 16. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________ |
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| 48 | 48 | | |
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| 49 | 49 | | PART I |
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| 50 | 50 | | |
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| 51 | 51 | | SECTION 1. The legislature finds that the agribusiness development corporation was established in 1994 to address the issue of large tracts of land becoming available due to the downsizing of the sugar and pineapple industries. |
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| 52 | 52 | | |
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| 53 | 53 | | The legislature further finds that Hawaii now faces different issues in agriculture, mainly sustainable agriculture and local food production. According to the agribusiness development corporation's 2019 report to the legislature, the corporation manages over 22,000 acres of public agricultural lands with significant potential to shape the State's agricultural public policy toward the goal of food self-sufficiency. The lack of affordable agricultural land is cited as a key impediment to the growth and expansion of local agriculture. |
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| 54 | 54 | | |
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| 55 | 55 | | Moreover, the legislature finds that the lands under the jurisdiction of the agribusiness development corporation experience some of the heaviest and most frequent application of restricted use pesticides, according to mandatory restricted use pesticide usage data reported to the department of agriculture. Pesticides are prone to drift off target and therefore pose a threat to the public and environmental health of nearby communities. Industrial agricultural practices that rely heavily on conventional fertilizers and pesticides deplete soil health and productivity over time, thus diminishing the productivity of those lands for potential future tenants. |
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| 56 | 56 | | |
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| 57 | 57 | | The legislature additionally finds that the agribusiness development corporation lacks a clear process for decision making and a system of land management and record keeping. |
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| 58 | 58 | | |
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| 59 | 59 | | The purpose of this Act is to: |
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| 60 | 60 | | |
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| 61 | 61 | | (1) Establish, as the primary purpose of the agribusiness development corporation, supporting the achievement of local food self-sufficiency in a manner that is economically and environmentally sustainable; |
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| 62 | 62 | | |
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| 63 | 63 | | {2) Ensure the agribusiness development corporation coordinates and administers programs to reduce Hawaii's reliance on imported agricultural products, increases local production of agricultural products for local consumption, reduces the use of pesticides, and increases access to farmland and related infrastructure for local farmers and cooperatives; |
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| 64 | 64 | | |
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| 65 | 65 | | (3) Ensure that the agribusiness development corporation is managed by board members with knowledge of and experience in local food production and sustainable forms of agricultural production; and |
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| 66 | 66 | | |
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| 67 | 67 | | (4) Ensure transparency and accountability in the conduct of the agribusiness development corporation. |
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| 68 | 68 | | |
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| 69 | 69 | | PART II |
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| 70 | 70 | | |
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| 71 | 71 | | SECTION 2. Chapter 163D, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows: |
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| 72 | 72 | | |
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| 73 | 73 | | "§163D- Written policies and procedures; board oversight; application processes; property management; file and document management. (a) Within one year of the effective date of this section, the corporation shall develop written policies and procedures relating but not limited to: |
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| 74 | 74 | | |
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| 75 | 75 | | (1) Board oversight. The policies and procedures shall include, among other things: |
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| 76 | 76 | | |
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| 77 | 77 | | (A) The matters or types of matters that shall be presented to the board for information, consideration, or action; and |
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| 78 | 78 | | |
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| 79 | 79 | | (B) Criteria establishing the actions that the executive director may authorize without the board's approval, including powers delegated by the board to the executive director, if any, as well as the process to periodically review the delegated authority and the recording of actions taken by the board, which shall include, among other things, confirmation of the board's approvals, approvals with amendments, rejections, or deferrals; |
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| 80 | 80 | | |
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| 81 | 81 | | (2) Land and other corporation-owned property disposition application processes. The policies and procedures shall address, among other things, the internal processes for evaluating applications for use of corporation-owned property, including criteria upon which applications are evaluated. The corporation shall also maintain checklists to document completion of each step of the process, receipt of required information, and timely communication with the applicant; |
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| 82 | 82 | | |
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| 83 | 83 | | (3) Property management. The policies and procedures shall address, among other things, the process: |
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| 84 | 84 | | |
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| 85 | 85 | | (A) To confirm the receipt of all required documentation and other information, such as certificates or other evidence of compliance with federal and state requirements, performance bonds or other security, certificates, or other evidence of insurance; |
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| 86 | 86 | | |
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| 87 | 87 | | (B) For inspection of corporate properties, including the information or types of information that shall be documented and the frequency of inspections; |
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| 88 | 88 | | |
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| 89 | 89 | | (C) For enforcement of license, permit, and right-of-entry terms and conditions, including issuance of notices of default; |
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| 90 | 90 | | |
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| 91 | 91 | | (D) To evaluate the need for and type of security measures for a specific parcel; and |
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| 92 | 92 | | |
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| 93 | 93 | | (E) To document completion of required processes or activities; and |
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| 94 | 94 | | |
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| 95 | 95 | | (4) File and document management. The policies and procedures shall address, among other things: |
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| 96 | 96 | | |
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| 97 | 97 | | (A) The types of documents retained by the corporation and organization of those documents; |
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| 98 | 98 | | |
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| 99 | 99 | | (B) Staff responsibility for performing each file and document management task; |
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| 100 | 100 | | |
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| 101 | 101 | | (C) Document retention; and |
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| 102 | 102 | | |
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| 103 | 103 | | (D) Reporting of any release of personal information. |
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| 104 | 104 | | |
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| 105 | 105 | | §163D- Rules; application process; use of lands and other assets. Within one year of the effective date of this section, the corporation shall adopt rules to address, among other things: |
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| 106 | 106 | | |
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| 107 | 107 | | (1) The application process for the use of the corporation's land and other assets, including the corporation's process for evaluating applications; |
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| 108 | 108 | | |
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| 109 | 109 | | (2) The corporation's administration and enforcement of the terms and conditions of licenses, permits, rights of entry, and other conveyance instruments, including those relating to inspections, notices of default, termination, eviction, and appeal rights; |
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| 110 | 110 | | |
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| 111 | 111 | | (3) Criteria and other procedures to create subsidiaries; |
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| 112 | 112 | | |
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| 113 | 113 | | (4) Criteria and other procedures to coventure and invest directly in an agricultural enterprise; |
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| 114 | 114 | | |
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| 115 | 115 | | (5) Criteria and other procedures to apply and qualify for allowances and grants; |
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| 116 | 116 | | |
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| 117 | 117 | | (6) Criteria and other procedures to exercise the corporation's right of withdrawal from licenses, permits, and rights of entry; and |
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| 118 | 118 | | |
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| 119 | 119 | | (7) Criteria and other procedures to apply and qualify for rent credits. |
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| 120 | 120 | | |
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| 121 | 121 | | §163D- Production of agricultural products for local consumption; agricultural principles; soil testing. (a) To increase the production of agricultural products for local consumption within the State, the corporation shall prioritize entering into lease agreements designed to support such local production. The corporation shall, among other things: |
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| 122 | 122 | | |
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| 123 | 123 | | (1) Aggressively seek to locate potential lessees or licensees; |
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| 124 | 124 | | |
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| 125 | 125 | | (2) Disseminate information concerning the availability of suitable lands; and |
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| 126 | 126 | | |
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| 127 | 127 | | (3) Enter into leases or licenses of sufficient length, for land of an appropriate size, and at an appropriate cost to allow lessees and licensees an adequate opportunity to operate profitable enterprises. |
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| 128 | 128 | | |
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| 129 | 129 | | (b) The corporation shall: |
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| 130 | 130 | | |
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| 131 | 131 | | (1) Develop, support, or partner in programs that provide education, training, and financing, as necessary, to facilitate the success of its lessees and licensees; and |
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| 132 | 132 | | |
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| 133 | 133 | | (2) Ensure that such programs are available to meet the needs of smaller agricultural enterprises that serve the local market. |
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| 134 | 134 | | |
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| 135 | 135 | | (c) The corporation shall ensure that within five years of the effective date of this section, no less than eighty per cent of all lands within its inventory are leased or licensed for agricultural production. |
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| 136 | 136 | | |
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| 137 | 137 | | (d) The corporation shall ensure that within five years of the effective date of this section, substantially all production under at least fifty per cent of all of its leases and licenses are intended for local consumption and produced in accordance with the principles of organic farming, Korean natural farming, or biodynamic farming. |
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| 138 | 138 | | |
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| 139 | 139 | | As used in this subsection, "Korean natural farming" means an organic agricultural practice that takes advantage of indigenous microorganisms, such as bacteria, fungi, nematodes, and protozoa, to produce fertile soils that yield high output without the use of herbicides or pesticides. |
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| 140 | 140 | | |
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| 141 | 141 | | (e) The corporation shall ensure that within five years of the effective date of this section, at least twenty per cent of all leases and licenses of its lands are for parcels no greater than twenty acres. |
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| 142 | 142 | | |
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| 143 | 143 | | (f) The corporation shall ensure that within five years of the effective date of this section, the leases and licenses of at least twenty per cent of all lands within its inventory prohibit the use of any materials that do not comply with United States Department of Agriculture National Organic Program regulations, as set forth in title 7 Code of Federal Regulations part 205. |
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| 144 | 144 | | |
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| 145 | 145 | | (g) The corporation shall ensure that within five years of the effective date of this section, none of the lands within its inventory shall be leased or licensed to any agricultural enterprise that meets the definition of a concentrated animal feeding operation, as set forth by the United States Environmental Protection Agency in title 40 Code of Federal Regulations section 122.23. |
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| 146 | 146 | | |
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| 147 | 147 | | (h) The corporation shall test the soils of all of the lands it leases or licenses prior to occupancy. All leases or licenses of lands under the corporation's direct or indirect control shall contain provisions requiring that before the expiration of the lease or license or before the lessee or licensee vacates the leased or licensed property, the lessee or licensee shall procure the services of an independent third party to test the soil and remove any contaminants that exceed the levels that existed at the commencement of the term of the lease or license." |
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| 148 | 148 | | |
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| 149 | 149 | | PART III |
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| 150 | 150 | | |
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| 151 | 151 | | SECTION 3. Section 163D-1, Hawaii Revised Statutes, is amended to read as follows: |
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| 152 | 152 | | |
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| 153 | 153 | | "§163D-1 Findings and purpose. The legislature finds that the downsizing of the sugar and pineapple industries presented an unprecedented opportunity for the conversion of agriculture into a dynamic growth industry[. Within the next decade, the State can use public agricultural lands to] that will enhance the local economy, provide employment opportunities, decrease reliance on imported agricultural products, and provide more sources of locally grown food for residents. Thousands of acres of agricultural lands [and fifty million gallons per day of irrigation water were released by plantations. The downsizing of the sugar and pineapple industries idled and left] are vacant [a valuable inventory of supporting infrastructure including], and irrigation systems, roads, drainage systems, processing facilities, workshops, and warehouses [that] are [still largely] underutilized. The challenge to government and business is to continue to conserve and convert the arable lands and their associated production infrastructure in a timely manner into new productive agricultural uses. Aggressive and dynamic leadership can play a critically important role in promoting and developing agricultural enterprises, coordinating industry development, providing industry-wide services, providing marketing assistance, and facilitating investments and coventures in viable enterprises. |
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| 154 | 154 | | |
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| 155 | 155 | | The purpose of this chapter is to create a vehicle and process to make optimal use of agricultural assets for the economic, environmental, and social benefit of the people of Hawaii. This chapter establishes a public corporation to administer an aggressive and dynamic agribusiness development program. The [purposes] primary purpose of the corporation shall be to support the [production] achievement of local [agricultural products for local consumption] food self-sufficiency in a manner that is economically and environmentally sustainable [while continuing to develop commercial exports of locally produced agricultural products]. To further [these purposes,] this purpose, the corporation shall coordinate and administer programs to [assist agricultural enterprises to facilitate the transition of agricultural infrastructure from plantation operations into other agricultural enterprises,] reduce Hawaii's reliance on imported agricultural products; increase local production of agricultural products for local consumption[,]; reduce the [State's reliance on imported agricultural products, and] use of pesticides; increase access to farmland and related infrastructure for small local farmers and cooperatives[.]; and provide leadership for the development, financing, improvement, or enhancement of agricultural enterprises." |
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| 156 | 156 | | |
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| 157 | 157 | | SECTION 4. Section 163D-2, Hawaii Revised Statutes, is amended by amending the definition of "agriculture" to read as follows: |
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| 158 | 158 | | |
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| 159 | 159 | | ""Agriculture" means the production for local consumption within the State and exporting of plant and animal life on land and within ponds and other bodies of water for food, fiber, and raw materials for value-added products, and any agricultural enterprise or enterprises organized for the production of agricultural materials or value-added products [based on detailed marketing analysis and strategies] to exploit profitable potentials in local, national, and international markets, including general farming, [cane growing,] fruit growing, flower growing, aquaculture, growing of timber and forest products, apiary, grazing, dairying, and the production of any form of livestock or poultry, and their appurtenant services and facilities." |
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| 160 | 160 | | |
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| 161 | 161 | | SECTION 5. Section 163D-3, Hawaii Revised Statutes, is amended as follows: |
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| 162 | 162 | | |
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| 163 | 163 | | 1. By amending subsections (b) to (e) to read: |
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| 164 | 164 | | |
|---|
| 165 | 165 | | "(b) The board of directors of the corporation shall consist of [eleven] fifteen voting members, of whom eight shall be appointed by the governor[.] pursuant to section 26-34. The terms of these eight members shall be four years; provided that[, commencing on July 1, 2005,] the governor shall reduce the terms of those [initially] appointed so as to provide, as nearly as can be, for the expiration of an equal number of terms at intervals of one year. |
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| 166 | 166 | | |
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| 167 | 167 | | The eight members shall be selected on the basis of their knowledge, experience, and proven expertise in small and large businesses within the agricultural industry, agricultural economics, banking, real estate, finance, promotion, marketing, local food production, [and] management[.], and native Hawaiian traditional and customary practices. Of these eight members[, one]: |
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| 168 | 168 | | |
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| 169 | 169 | | (1) One shall be from the city and county of Honolulu, one shall be from the county of Hawaii, one shall be from the county of Maui, one shall be from the county of Kauai, and four shall be appointed at-large[.]; |
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| 170 | 170 | | |
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| 171 | 171 | | (2) At least four shall have substantial experience in local food production; |
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| 172 | 172 | | |
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| 173 | 173 | | (3) At least two shall have substantial experience in organic and natural farming practices; and |
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| 174 | 174 | | |
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| 175 | 175 | | (4) At least one shall have demonstrated expertise in native Hawaiian traditional and customary practices, as evidenced by: |
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| 176 | 176 | | |
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| 177 | 177 | | (A) A college degree in a relevant field, such as Hawaiian studies, native Hawaiian law, native Hawaiian traditional and customary practices, or a related subject; |
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| 178 | 178 | | |
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| 179 | 179 | | (B) Work history that demonstrates an appropriate level of knowledge in native Hawaiian traditional and customary practices; or |
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| 180 | 180 | | |
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| 181 | 181 | | (C) Substantial experience as a native Hawaiian traditional and customary practitioner. |
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| 182 | 182 | | |
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| 183 | 183 | | The [director of business, economic development, and tourism; the] chairperson of the board of agriculture[; and the chairperson of the board of land and natural resources, or their], or the chairperson's designated [representatives,] representative, shall be [ex-officio,] an ex officio, voting [members] member of the board. Of the remaining voting members, one member each shall be selected by the chairperson of the board of trustees of the office of Hawaiian affairs; director of business, economic development, and tourism; chairperson of the board of land and natural resources; chancellor of the University of Hawaii West Oahu campus; Hawaii Farm Bureau; and Hawaii Farmers Union United. All members shall continue in office until their respective successors have been appointed and qualified. The board shall annually elect its chairperson from among its members; provided that the chairperson shall not be an [ex-officio] ex officio member. |
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| 184 | 184 | | |
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| 185 | 185 | | (c) The members of the board shall serve without compensation[,] but shall be reimbursed for actual expenses incurred in the performance of their duties. |
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| 186 | 186 | | |
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| 187 | 187 | | (d) The board shall appoint an executive director, who shall serve [at the pleasure of the board and shall] be exempt from [chapter] chapters 76[.] and 77. The salary of the executive director shall be set by the board. The executive director shall serve for a term of five years, unless terminated by the board before the end of the term, and no individual shall serve consecutive terms. |
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| 188 | 188 | | |
|---|
| 189 | 189 | | (e) The board shall develop and document annual goals and performance measures for the executive director that allow the board to annually evaluate the executive director's [work] performance to ensure compliance by the corporation with statutory requirements and achievement of its statutory purposes[.], among other matters." |
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| 190 | 190 | | |
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| 191 | 191 | | 2. By amending subsection (h) to read: |
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| 192 | 192 | | |
|---|
| 193 | 193 | | "(h) The board, through its executive director, may appoint officers, agents, and employees; prescribe their duties and qualifications; and fix their salaries, without regard to [chapter] chapters 76[.] and 77." |
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| 194 | 194 | | |
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| 195 | 195 | | SECTION 6. Section 163D-4, Hawaii Revised Statutes, is amended to read as follows: |
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| 196 | 196 | | |
|---|
| 197 | 197 | | "§163D-4 Powers; generally. (a) Except as otherwise limited by this chapter, the corporation may: |
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| 198 | 198 | | |
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| 199 | 199 | | (1) Sue and be sued; |
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| 200 | 200 | | |
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| 201 | 201 | | (2) Have a seal and alter the same at its pleasure; |
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| 202 | 202 | | |
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| 203 | 203 | | (3) Make and alter bylaws for its organization and internal management; |
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| 204 | 204 | | |
|---|
| 205 | 205 | | (4) Adopt rules under chapter 91 necessary to effectuate this chapter in connection with its projects, operations, and properties; |
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| 206 | 206 | | |
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| 207 | 207 | | (5) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter; |
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| 208 | 208 | | |
|---|
| 209 | 209 | | (6) Acquire or contract to acquire by grant or purchase any real, personal, or mixed property or any interest therein for its immediate or future use for the purposes of this chapter; own, hold, improve, and rehabilitate any real, personal, or mixed property acquired, and sell, assign, exchange, transfer, convey, lease, or otherwise dispose of, or encumber the same; |
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| 210 | 210 | | |
|---|
| 211 | 211 | | (7) By itself, or in partnership with qualified persons, acquire, construct, reconstruct, rehabilitate, improve, alter, or repair any infrastructure or accessory facilities in connection with any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of, or encumber any project; |
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| 212 | 212 | | |
|---|
| 213 | 213 | | (8) In cooperation with the department of agriculture, pursuant to chapter 167, or otherwise through direct investment or coventure with a professional investor or enterprise or any other person, or otherwise, to acquire, construct, operate, and maintain water facilities for conveying, distributing, and transmitting water for irrigation and agricultural uses at rates or charges determined by the corporation; provided that: |
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| 214 | 214 | | |
|---|
| 215 | 215 | | (A) This chapter shall not be construed to permit or allow the department of agriculture or any agribusiness development corporation to: |
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| 216 | 216 | | |
|---|
| 217 | 217 | | (i) Amend or modify rights or entitlements to water as provided for by article XI, section 7, of the Constitution of the State of Hawaii, or the Hawaiian Homes Commission Act, 1920, as amended, and chapter 168; |
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| 218 | 218 | | |
|---|
| 219 | 219 | | (ii) Diminish or abridge the traditional and customary rights of ahupuaa tenants who inhabited the Hawaiian Islands prior to 1778 under sections 1-1 and 7-1; and |
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| 220 | 220 | | |
|---|
| 221 | 221 | | (iii) Impair, abridge, or terminate the legal rights or interests to water and its uses, whether by lease, easement, or other means, which are possessed or held by organizations whose primary purpose is to benefit people of Hawaiian ancestry; and |
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| 222 | 222 | | |
|---|
| 223 | 223 | | (B) All usage of water shall be in accordance with chapter 174C and other applicable laws in the State; |
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| 224 | 224 | | |
|---|
| 225 | 225 | | (9) Receive, examine, and determine the acceptability of applications of qualified persons for allowances or grants for the development of new crops and agricultural products, the expansion of established agricultural enterprises, and the altering of existing agricultural enterprises; |
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| 226 | 226 | | |
|---|
| 227 | 227 | | (10) Coordinate its activities with any federal or state farm credit programs; |
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| 228 | 228 | | |
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| 229 | 229 | | (11) Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on the terms and conditions it deems advisable; |
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| 230 | 230 | | |
|---|
| 231 | 231 | | (12) Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, in order to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice; |
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| 232 | 232 | | |
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| 233 | 233 | | (13) Procure insurance against any loss in connection with its property and other assets and operations in such amounts and from such insurers as it deems desirable; |
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| 234 | 234 | | |
|---|
| 235 | 235 | | (14) Accept gifts or grants in any form from any public agency or any other source[;] that promotes the purposes of this chapter; provided that any private gifts or grants shall first be approved by the board and shall be promptly disclosed to the public; and |
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| 236 | 236 | | |
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| 237 | 237 | | (15) Do all things necessary or proper to carry out the purposes of this chapter. |
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| 238 | 238 | | |
|---|
| 239 | 239 | | (b) The corporation shall [develop,] promote[,] and assist[, and market agricultural products] in the development of crops for local markets and local consumption[,] within the State as a first priority and [shall promote and assist in commercial] for export [of agricultural products.] as a second priority." |
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| 240 | 240 | | |
|---|
| 241 | 241 | | SECTION 7. Section 163D-5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: |
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| 242 | 242 | | |
|---|
| 243 | 243 | | "(a) The corporation shall prepare and post on its website the Hawaii agribusiness plan, which shall [define and establish] specifically describe the corporation's strategy for implementing the goals[, objectives, policies, and priority guidelines for its agribusiness development strategy.] and priorities of this chapter during the ensuing five years. As part of the preparation of the plan, the corporation shall engage with and seek input from stakeholders with experience in local food production, food systems planning, and organic and natural farming practices. The plan shall include but not be limited to: |
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| 244 | 244 | | |
|---|
| 245 | 245 | | (1) An inventory of agricultural lands with suitable adequate water resources that are or will become available; provided that the inventory of agricultural lands under this paragraph shall be agricultural lands within the purview of the corporation that can be used to meet present and future agricultural production needs; |
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| 246 | 246 | | |
|---|
| 247 | 247 | | (2) An inventory of available agricultural infrastructure, such as irrigation systems, drainage systems, processing facilities, and other accessory facilities, that are controlled by the corporation; and |
|---|
| 248 | 248 | | |
|---|
| 249 | 249 | | (3) Strategies for federal, state, county, and community stakeholder actions that will promote the development and enhancement of Hawaii's agricultural industries." |
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| 250 | 250 | | |
|---|
| 251 | 251 | | SECTION 8. Section 163D-6, Hawaii Revised Statutes, is amended to read as follows: |
|---|
| 252 | 252 | | |
|---|
| 253 | 253 | | "§163D-6 Subsidiaries; establishment. (a) The corporation may exercise its powers through one or more subsidiary corporations. The corporation, by resolution, may direct any of its members, officers, or employees to organize a subsidiary corporation pursuant to either chapter 414 or chapter 414D; provided that the organization of a subsidiary corporation shall not adversely affect the federal tax status of the interest on any bonds issued to finance any project or project facility. The resolution shall prescribe the purposes for which the subsidiary corporation is established. The subsidiary corporation shall remain a subsidiary of the corporation as long as more than one-half of its voting shares are owned or held by the corporation, or a majority of its directors are designated by the corporation; provided that the corporation shall not convey or otherwise dispose of any subsidiary corporation or surrender the right to designate a majority of the directors of any subsidiary corporation if the sale or surrender has an adverse affect on the federal tax status of the interest on any bonds issued to finance any project or project facility. The subsidiary corporation may be operated, maintained, and enhanced at the full discretion of the corporation or its designee. |
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| 254 | 254 | | |
|---|
| 255 | 255 | | [(b) If the corporation acquires the assets of a private or other corporation, then, notwithstanding any law to the contrary: |
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| 256 | 256 | | |
|---|
| 257 | 257 | | (1) Neither the corporation nor any subsidiary corporation vested with the assets shall be subject to chapter 91 with respect to the assets; |
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| 258 | 258 | | |
|---|
| 259 | 259 | | (2) Employees retained to operate the assets shall not be subject to chapter 76; |
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| 260 | 260 | | |
|---|
| 261 | 261 | | (3) Assets constituting real property interest shall not be subject to chapter 171; |
|---|
| 262 | 262 | | |
|---|
| 263 | 263 | | (4) No investment, loan, or use of funds by the corporation or a subsidiary corporation vested with the assets shall be subject to chapter 42F or 103; and |
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| 264 | 264 | | |
|---|
| 265 | 265 | | (5) Neither the corporation nor a subsidiary corporation vested with the assets shall constitute a public utility or be subject to the jurisdiction of the public utilities commission under chapter 269. |
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| 266 | 266 | | |
|---|
| 267 | 267 | | (c)] (b) The corporation may transfer to any subsidiary corporation any moneys, any real, personal, or mixed property, or any project, in order to carry out the purposes of this chapter. Each subsidiary corporation shall have all the powers of the corporation." |
|---|
| 268 | 268 | | |
|---|
| 269 | 269 | | SECTION 9. Section 163D-7, Hawaii Revised Statutes, is amended to read as follows: |
|---|
| 270 | 270 | | |
|---|
| 271 | 271 | | "§163D-7 Agricultural projects; agricultural development plans. (a) The corporation may develop and implement agricultural projects where large tracts of agricultural land have been or will be taken out of productive agriculture or where, through detailed analysis, opportunities exist to exploit potential local, national, and international markets. |
|---|
| 272 | 272 | | |
|---|
| 273 | 273 | | (b) The corporation may initiate and coordinate the preparation of business and agricultural development plans for its projects. The plans shall include a proposal for the organization of the enterprise, a marketing information and strategy, the impact on existing agricultural operations throughout the State, and a recommendation for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any infrastructure or accessory facilities in connection with any project. |
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| 274 | 274 | | |
|---|
| 275 | 275 | | (c) The corporation may enter into cooperative agreements with coordinating entrepreneurs or public agencies when the powers, services, and capabilities of the persons or agencies are deemed necessary and appropriate for the development and implementation of the business and agricultural development plans. |
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| 276 | 276 | | |
|---|
| 277 | 277 | | [(d) The corporation may purchase, accept, and maintain permanent conservation easements, or transfer these easements to a qualified land trust in accordance with the federal Natural Resources Conservation Service farm and ranch lands protection program. |
|---|
| 278 | 278 | | |
|---|
| 279 | 279 | | (e) Notwithstanding any provision of this chapter to the contrary, when leasing corporation-controlled agricultural land, the corporation may contract with a financial institution chartered under chapter 412 or a federal financial institution, as defined under section 412:1-109, that transacts business in this State to provide lease management services. For the purposes of this subsection, "lease management services" includes the collection of lease rent and any other moneys owed to the corporation related to the lease of agricultural land under the corporation's control. |
|---|
| 280 | 280 | | |
|---|
| 281 | 281 | | (f)] (d) The agricultural planning activities of the corporation shall be coordinated with the county planning departments and the county land use plans, policies, and ordinances. |
|---|
| 282 | 282 | | |
|---|
| 283 | 283 | | [(g)] (e) The corporation may amend the business and agricultural development plans as may be necessary. |
|---|
| 284 | 284 | | |
|---|
| 285 | 285 | | [(h)] (f) Any undertaking by the corporation pursuant to this chapter shall be with the express written consent of the landowner or landowners directly affected." |
|---|
| 286 | 286 | | |
|---|
| 287 | 287 | | SECTION 10. Section 163D-8, Hawaii Revised Statutes, is amended by amending subsections (a) to (d) to read as follows: |
|---|
| 288 | 288 | | |
|---|
| 289 | 289 | | "(a) The corporation may [develop a project to] identify necessary project facilities within a project area. |
|---|
| 290 | 290 | | |
|---|
| 291 | 291 | | (b) [Unless and except as otherwise provided by law, whenever] Whenever the corporation undertakes, or causes to be undertaken, any project facility as part of a project, the cost of providing the project facilities shall be assessed against the real property in the project area specially benefiting from the project facilities. Subject to the express written consent of the landowners directly affected, the corporation shall determine the properties that will benefit from the project facilities to be undertaken and may establish assessment areas that include the properties specially benefiting from the project facilities. The corporation may issue and sell bonds in such amounts as may be authorized by the legislature to provide funds to finance the project facilities. The corporation shall fix the assessments against the real property specially benefited. |
|---|
| 292 | 292 | | |
|---|
| 293 | 293 | | (c) [Unless and except as otherwise provided by law, the] The corporation may adopt rules pursuant to chapter 91 to establish the method of undertaking and financing project facilities in a project area. |
|---|
| 294 | 294 | | |
|---|
| 295 | 295 | | (d) [Unless and except as otherwise provided by law, bonds] Bonds issued to provide funds to finance project facilities shall be secured solely by the real properties benefited or improved and the assessments thereon, or by the revenues derived from the project for which the bonds were issued, including reserve accounts and earnings thereon, insurance proceeds, and other revenues, or any combination thereof. The bonds may be additionally secured by the pledge or assignment of loans and other agreements or any note or other undertaking, obligation, or property held by the corporation. The bonds shall be issued according to and subject to the rules adopted pursuant to this section. Any other law to the contrary notwithstanding, in assessing real property for project facilities, the corporation shall assess the real property within a project area according to the special benefits conferred upon the real property by the project facilities. These methods may include assessment on a frontage basis or according to the area of real property within a project area, or any other assessment method that assesses the real property according to the special benefit conferred, or any combination thereof. No such assessment levies against real property specially benefited under this chapter shall constitute a tax on real property within the meaning of any law." |
|---|
| 296 | 296 | | |
|---|
| 297 | 297 | | SECTION 11. Section 163D-9, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: |
|---|
| 298 | 298 | | |
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| 299 | 299 | | "(a) The corporation, with the approval of the governor, may issue, from time to time, revenue bonds in amounts not exceeding the total amount of bonds authorized to be issued by the legislature for the purpose of constructing, acquiring, remodeling, furnishing, and equipping any project facility, including the acquisition of the site thereof[; acquiring agricultural lands through purchase to sustain and preserve viable agricultural enterprises within a contiguous geographic area; or acquiring agricultural lands for the protection of agricultural lands, public land banking, or the promotion of farm ownership and diversified agriculture]." |
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| 300 | 300 | | |
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| 301 | 301 | | SECTION 12. Section 163D-15.6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: |
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| 302 | 302 | | |
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| 303 | 303 | | "(a) The agribusiness development corporation shall work toward obtaining commitments from landowners [in the leeward and central districts of Oahu] that their agricultural leases shall be for a duration of twenty or more years and shall not be amended or revoked to allow for a nonagricultural use of the land; provided that for lands in central Oahu acquired under Act 234, Session Laws of Hawaii 2008, the agricultural leases shall be for no more than fifty-five years." |
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| 304 | 304 | | |
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| 305 | 305 | | SECTION 13. Section 163D-19, Hawaii Revised Statutes, is amended to read as follows: |
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| 306 | 306 | | |
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| 307 | 307 | | "§163D-19 Annual report. (a) The corporation shall submit to the governor and the legislature, no later than twenty days prior to the convening of each regular session, a complete and detailed report of its plans and activities. The corporation shall also post the report on its website no later than twenty days prior to the convening of each regular session. |
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| 308 | 308 | | |
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| 309 | 309 | | (b) The following information shall be included in the annual report and shall be posted on the corporation's website: |
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| 310 | 310 | | |
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| 311 | 311 | | (1) The number of lots the corporation leased or [used,] licensed, by size and island; |
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| 312 | 312 | | |
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| 313 | 313 | | (2) The number of lots the corporation leased or [used,] licensed, by island, that contain protocols and conditions supporting specialty farm products; |
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| 314 | 314 | | |
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| 315 | 315 | | (3) The number of vacant parcels and unoccupied parcels in the leasing process, by island, including the parcel size, location, and date the parcel was last occupied by a tenant; and |
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| 316 | 316 | | |
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| 317 | 317 | | (4) A description of any lease or license sales or transfers approved by the [corporation,] department of business, economic development, and tourism, including: |
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| 318 | 318 | | |
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| 319 | 319 | | (A) A description of the type of farm products produced by the transferring lessee and the farm products to be produced by the accepting lessee on the leased lands; and |
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| 320 | 320 | | |
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| 321 | 321 | | (B) The date and description of the transferring lessee's last lease approved by the corporation." |
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| 322 | 322 | | |
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| 323 | 323 | | SECTION 14. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. |
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| 324 | 324 | | |
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| 325 | 325 | | SECTION 15. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. |
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| 326 | 326 | | |
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| 327 | 327 | | SECTION 16. This Act shall take effect upon its approval. |
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| 328 | 328 | | |
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| 329 | 329 | | |
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| 330 | 330 | | |
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| 331 | 331 | | INTRODUCED BY: _____________________________ |
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| 332 | 332 | | |
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| 333 | 333 | | INTRODUCED BY: |
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| 334 | 334 | | |
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| 335 | 335 | | _____________________________ |
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| 336 | 336 | | |
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| 337 | 337 | | |
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| 338 | 338 | | |
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| 339 | 339 | | |
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| 340 | 340 | | |
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| 341 | 341 | | Report Title: Agribusiness Development Corporation; Restructuring Description: Amends various powers and priorities of the agribusiness development corporation, including several of its processes, membership of its board of directors, term of its executive director, and the scope of its work. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. |
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| 342 | 342 | | |
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| 343 | 343 | | |
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| 344 | 344 | | |
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| 345 | 345 | | |
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| 346 | 346 | | |
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| 347 | 347 | | Report Title: |
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| 348 | 348 | | |
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| 349 | 349 | | Agribusiness Development Corporation; Restructuring |
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| 350 | 350 | | |
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| 351 | 351 | | |
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| 352 | 352 | | |
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| 353 | 353 | | Description: |
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| 354 | 354 | | |
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| 355 | 355 | | Amends various powers and priorities of the agribusiness development corporation, including several of its processes, membership of its board of directors, term of its executive director, and the scope of its work. |
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| 356 | 356 | | |
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| 357 | 357 | | |
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| 358 | 358 | | |
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| 359 | 359 | | |
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| 360 | 360 | | |
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| 361 | 361 | | |
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| 362 | 362 | | |
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| 363 | 363 | | The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. |
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