Bill Text: HI HB1971 | 2024 | Regular Session | Introduced

Hawaii House Bill 1971

HI State Legislature page for HB1971

Introduced

Bill Title: Relating To Agriculture.

Spectrum: Moderate Partisan Bill (Democrat 16-2)

Status: (Introduced) 2024-02-07 - This measure has been deleted from the meeting scheduled on Friday 02-09-24 9:30AM in conference room 325 VIA VIDEOCONFERENCE. [HB1971 Detail]

Download: Hawaii-2024-HB1971-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	1971
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

A BILL FOR AN ACT

relating to agriculture.

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

SECTION 1. The legislature finds that state agricultural lands are a key resource that can be used to meet the State's goals for economic diversification and food self-sufficiency. In order to support farmers on these lands, the State subsidizes lessees by providing the leases below market rates and, in some cases, providing lower-cost agricultural water. Despite these state subsidies, some state agricultural leases are used primarily as residences or non-agricultural businesses or are unused.

The legislature further finds that lessees who obtain a state agricultural lease in high-demand locations can transfer the remainder of their lease to the highest bidder, thereby converting their lease into a windfall profit above and beyond their investment in the property. This windfall profit is an unintended transfer of wealth from the State to individual lessees. This situation also causes the transfers of leases to the highest bidder, who may or may not be the farmers best able to use the land for agricultural production. The legislature believes that further data is needed to assess to what extent the department of agriculture leases maximize the benefit to the State of these lands to help the State achieve its economic and food production goals. Further data is also needed to assess whether the transfer of state lands from one lessee to another results in the difference between the actual value of the lease and the subsidized price of the lease being monetized for private, rather than State, benefit.

Accordingly, the purpose of this Act is to require the board of agriculture to submit a report on the percentages of agricultural lands being leased by the State that are suitable for farming and actively being used for farming purposes and certain dollar amounts relating to lease transfers between lessees.

SECTION 2. The board of agriculture shall submit to the legislature no later than twenty days prior to the convening of the regular session of 2025 a report of:

(1) The percentage of each tax map key of agricultural lands that are leased by the State pursuant to section 166-11, Hawaii Revised Statutes, that are:

(A) Suitable for farming; and

(B) Actively being farmed; and

(2) For every lease entered into pursuant to section 166‑11, Hawaii Revised Statutes, that was transferred by a lessee to another lessee, the dollar amounts of the following:

(A) Lease rent;

(B) Cost of infrastructure improvements made by the original lessee;

(D) Amount from the sum paid by the purchaser that goes to the State.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

Report Title:

BOA; Agricultural Lands; Leases; Report

Description:

Requires the Board of Agriculture to submit a report on the percentage of agricultural lands that are suitable for farming and actively farmed and certain dollar amounts relating to lease transfers between lessees.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.