Bill Text: HI SB510 | 2015 | Regular Session | Introduced
Bill Title: Department of Agriculture; Agribusiness Development Corporation; Diversified Agriculture; Leased Lands; Reporting Requirements
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2015-02-11 - The committee on WTL deferred the measure. [SB510 Detail]
Download: Hawaii-2015-SB510-Introduced.html
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THE SENATE |
S.B. NO. |
510 |
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TWENTY-EIGHTH LEGISLATURE, 2015 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to agricultural lands managed by the department of agriculture and the agribusiness development corporation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that a strong agricultural economy is built upon a wide array of agricultural operations that meet the variety of demands for agricultural products. Diversified agriculture requires innovation and adaptability to meet changing consumer demands, such as the growing demand for organic products. The State must provide opportunities for small, niche product farms, and new start-up farmers pioneering innovative techniques and crops in order to build and sustain a robust, diversified agricultural economy.
The purpose of this Act is to ensure that lands leased by the department of agriculture or the agribusiness development corporation are leased in a variety of farm sizes, provide protocols to enable farming of specialty products, and generally support diversified agriculture.
SECTION 2. Chapter 141, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§141- Reporting requirements; leased lands. The department of agriculture shall submit to the legislature and post on its website, no later than twenty days prior to the convening of each regular session, a complete and detailed report with the following information regarding its leased lands:
(1) The number of lots the department leased by size and by island;
(2) The number of lots by island the department leased 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 sales or transfers by lessees approved by the board of agriculture, 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 board."
SECTION 3. Section 163D-16, Hawaii Revised Statutes, is amended to read as follows:
"[[]§163D-16[]] Use of
public lands; acquisition of state lands. (a) Notwithstanding chapter 171
to the contrary, the governor may transfer lands located within a project area
to the corporation for its use.
(b) If state lands under the control and management of other public agencies are required by the corporation for its purposes, the agency having the control and management of those required lands, upon request by the corporation and with the approval of the governor, may lease the lands to the corporation upon such terms and conditions as may be agreed to by the parties.
(c) Notwithstanding subsection (b) to the contrary, no public lands shall be leased to the corporation if the lease would impair any covenant between the State or any county, or any department or board thereof, and the holders of bonds issued by the State or the county, department, or board.
(d) The corporation shall ensure that all public lands transferred to it are diversified by:
(1) Ensuring the lands are used or disposed of in each of the following ranges:
(A) At least one but less than ten acres;
(B) At least ten but less than twenty-five acres;
(C) At least twenty-five but less than fifty acres;
(D) At least fifty but less than two hundred acres; and
(E) At least two hundred acres;
(2) Adopting land-use protocols and conditions that support specialty farm products in specified locations, including areas for organic production where protocols and conditions will protect organic farms from pesticide drift by adjacent tenants; and
(3) Ensuring diversified agricultural opportunities are available on each island where there is available land to be used or disposed of by the corporation.
The corporation shall consider the diversity of its lands when approving lease sales or transfers by lessees to new tenants."
SECTION 4. 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.
(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 by size and by island;
(2) The number of lots by island the corporation leased or used 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 sales or transfers approved by the corporation, 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 5. Section 166-6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Any provision of this chapter to the contrary notwithstanding, the board may by negotiation, drawing of lot, or public auction, directly dispose of public lands and related facilities set aside and designated for use as agricultural parks, and any other lands and facilities under the jurisdiction of the department pursuant to section 166-3 and notwithstanding chapter 171. Except as provided by subsection (c), dispositions may be by lease and shall be subject to the requirements set forth in rules adopted by the board in conformity with section 166-9, and subject also to the following limitations:
(1) The property shall be disposed of for agricultural or aquacultural purposes only;
(2) The lessee shall derive the major portion of the lessee's total annual income from the lessee's activities on the premises; provided that this restriction shall not apply if failure to meet the restriction results from mental or physical disability or the loss of a spouse, or if the premises are fully utilized in the production of crops or products for which the disposition was granted;
(3) The lessee shall comply with all federal and state laws regarding environmental quality control;
(4) The board shall determine the specific uses for which the disposition is intended; parcel the land into minimum size economic units sufficient for the intended uses; make, or require the lessee to make improvements as are required to achieve the intended uses; set the upset price or lease rent based upon an appraised evaluation of the property value adjustable as provided in rules adopted in accordance with chapter 91 to the specified use of the lot; set the term of the lease, which shall be not less than fifteen years nor more than fifty-five years, including any extension granted for mortgage lending or guarantee purposes; and establish other terms and conditions as it may deem necessary, including but not limited to restrictions against alienation and provisions for withdrawal by the board;
(5) No lease shall be made to any person who is in
arrears in the payment of taxes, rents, or other obligations owing the State or
any county; [and]
(6) Any transferee, assignee, or sublessee of an
agricultural park lease shall first qualify as an applicant under this
chapter. For the purpose of this paragraph, any transfer, assignment, sale, or
other disposition of any interest, excluding a security interest, of any legal
entity which holds an agricultural park lease shall be treated as a transfer of
the agricultural park lease and shall be subject to the approval of the board
of agriculture upon reasonable terms and conditions, not inconsistent with this
chapter or rules of the board, which the board may deem necessary. No transfer
shall be approved by the board if the disposition of the stock, or assets or
other interest of the legal entity would result in the failure of the entity to
qualify for an agricultural park lease[.]; and
(7) The board shall ensure that leased lands are diversified by:
(A) Ensuring the lands are leased in each of the following ranges:
(i) At least one but less than ten acres;
(ii) At least ten but less than twenty-five acres;
(iii) At least twenty-five but less than fifty acres;
(iv) At least fifty but less than two hundred acres; and
(v) At least two hundred acres;
(B) Adopting protocols and lease conditions that support specialty farm products in specified locations, including areas for organic production where protocols and conditions will protect organic farms from pesticide drift by adjacent tenants; and
(C) Ensuring diversified leasing opportunities are available on each island where there are available leases.
The board shall consider the diversity of its leased lands when approving lease sales or transfers by lessees to new tenants."
SECTION 6. Section 166E-8, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) In all dispositions, the department shall be subject to the requirements set forth in rules adopted by the board consistent with section 166E-6 and subject to the following:
(1) All land and facilities shall be disposed of for purposes of agricultural or aquacultural activities only;
(2) Each lessee shall derive a major portion of the lessee's total annual income earned from the lessee's activities on the premises; provided that this restriction shall not apply if:
(A) Failure to meet the restriction results from mental or physical disability or the loss of a spouse; or
(B) The premises are fully used in the production of crops or products for which the disposition was granted;
(3) The lessee shall comply with all federal and state laws regarding environmental quality control;
(4) The board shall:
(A) Determine the specific uses for which the disposition is intended;
(B) Parcel the land into minimum size economic units sufficient for the intended uses;
(C) Make, or require the lessee to make, improvements that are required to achieve the intended uses;
(D) Set the upset price or lease rent based upon an appraised evaluation of the property value, adjustable to the specified use of the lot;
(E) Set the term of the lease that shall be not less than fifteen years nor more than sixty-five years, including any extension granted for mortgage lending or guarantee purposes; and
(F) Establish other terms and conditions it
deems necessary, including but not limited to restrictions against alienation
and provisions for withdrawal by the board; [and]
(5) Any transferee, assignee, or sublessee of a
non-agricultural park lease shall first qualify as an applicant under this
chapter. For the purpose of this paragraph, any transfer, assignment, sale, or
other disposition of any interest, excluding a security interest, by any legal
entity that holds a non-agricultural park lease shall be treated as a transfer
of the non-agricultural park lease and shall be subject to the approval of the
board and to reasonable terms and conditions, consistent with this chapter or
rules of the board that the board may deem necessary. No transfer shall be
approved by the board if the disposition of the stock or assets or other
interest of the legal entity would result in the failure of the entity to
qualify for a non-agricultural park land lease[.]; and
(6) The board shall ensure that leased lands are diversified by:
(A) Ensuring the lands are leased in each of the following ranges:
(i) At least one but less than ten acres;
(ii) At least ten but less than twenty-five acres;
(iii) At least twenty-five but less than fifty acres;
(iv) At least fifty but less than two hundred acres; and
(v) At least two hundred acres;
(B) Adopting protocols and lease conditions that support specialty farm products in specified locations, including areas for organic production where protocols and conditions will protect organic farms from pesticide drift by adjacent tenants; and
(C) Ensuring diversified leasing opportunities are available on each island where there are available leases.
The board shall consider the diversity of its leased lands when approving lease sales or transfers by lessees to new tenants."
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 2015.
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INTRODUCED BY: |
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Report Title:
Department of Agriculture; Agribusiness Development Corporation; Diversified Agriculture; Leased Lands; Reporting Requirements
Description:
Requires that lands managed by the department of agriculture and the agribusiness development corporation are disposed of in a variety of sizes and to diversified tenants to support a diversified agricultural economy. Requires the department of agriculture and the agribusiness development corporation to: (1) consider the diversity of their leased or transferred lands when approving leases or transfers; and (2) submit annual reports regarding land dispositions to the legislature and to post a copy of the reports on the Internet.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
