THE SENATE

S.B. NO.

1392

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to PUblic lands.

 

 

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

 


     SECTION 1.  Chapter 171, Hawaii Revised Statutes, is amended by adding a new subpart to part III to be appropriately designated and to read as follows:

"    .  Agricultural Enterprises Including

Certain Agricultural Uses

     §171-    Definitions.  As used in this subpart, unless the context otherwise requires:

     "Agricultural enterprise" means a person or entity that engages in activities pertaining to agricultural production, aquaculture farming, aquaculture produce processing, aquaculture development activities, or agricultural services.

     "Aquaculture" means the farming or ranching of aquatic life in a controlled salt, brackish, or fresh water environment; provided that the farm or ranch is on or directly adjacent to land.

§171-    Leases; leases with option to purchase; sales permitted when.  Land intended for disposition as an agricultural enterprise lot shall be disposed of by lease, by lease with option to purchase, or in fee simple.  Notwithstanding any other provision in this chapter to the contrary, such disposition may be by drawing of lot, without recourse to public auction; provided that the right to any values in the land not attributable to these agricultural uses shall be reserved to the State.

     Dispositions under this section shall be made only to agricultural enterprises that satisfy the requirements established by the board.

     §171-    Planning.  In addition to the requirements set forth in section 171-33 and 171-34, prior to making these dispositions, the board shall:

     (1)  Determine the economic feasibility and need for proposed disposition;

     (2)  Determine the minimum economic unit required for the successful undertaking of the specific use intended, taking into consideration soil fertility, soil condition, and availability of water; and

     (3)  Subdivide the land into economic units and make improvements as necessary in conformity with applicable county or city and county zoning and subdivision requirements, including the construction of necessary roads and irrigation facilities.

     §171-    Restrictions; conditions.  In addition to restrictions or conditions that may be established by the board to carry out the purposes of this chapter and by the Hawaii State Constitution, all sales of, leases of, or leases with an option to purchase an agricultural enterprise lot shall be subject to the following conditions, which shall be covenants running with the land:

     (1)  In the case of a lease, those provisions set forth in sections 171-35, 171-36 and 171-37, unless otherwise specifically provided in this section;

     (2)  In the case of a fee simple sale, the improvement required and the specific use or uses intended; and

     (3)  For a period of five years after the issuance of a patent or lease, the purchaser or lessee shall not sell, sublet, assign, transfer, or in other manner dispose or encumber the whole or any part of the agricultural enterprise lot to any person or entity not qualified to take an agricultural enterprise lot except by way of mortgage, testamentary bequest or devise, or intestate succession, except to a purchaser at or after sale upon the foreclosure of a mortgage.

     The violation of any restrictions or conditions set forth in this section shall be sufficient for the board, upon failure of the purchaser or lessee within a reasonable period of time to remedy the default after notice is provided, pursuant to section 171-20, to take possession of the premises without demand or previous entry and with or without legal process and thereby determine the estate, subject to the provisions contained in section 171-21.

     §171-    Applicants; qualifications of.  (a)  A person or entity shall be eligible to apply for an agricultural enterprise lot if the person or entity has the following qualifications:

     (1)  The person has been a resident of the State at any time for at least three years or the entity is a corporation, partnership, or company organized under the laws of the State of Hawaii or authorized to do business in the State of Hawaii;

     (2)  A sound credit risk with the ability to fulfill the terms of the agreement; and

     (3)  The person or entity:

         (A)  Has not less than two years of experience as an agricultural enterprise;

         (B)  Can demonstrate by reason of ability, experience, or training that the person or entity is likely to successfully operate as an agricultural enterprise; and

          (C)  Meets other qualifications as the board may prescribe pursuant to section 171-6.

     §171-    Preference right.  Any person or entity qualified to take an agricultural enterprise lot shall have preference in any drawing for agricultural enterprise lots, if the person or entity:

     (1)  Is a veteran (defined herein as a person who served in the military forces of the United States during any war between the United States and any other nation and who was discharged or released under conditions other than dishonorable); or

     (2)  Has been, within a period of not longer than five years prior to the filing of the application, an owner in possession, or a lessee in possession having an unexpired lease term of more than one year, of agricultural premises that were taken by any governmental authority for any public purpose who was:

         (A)  Displaced by reason of the taking by any governmental authority;

         (B)  Displaced due to a declaration of the use of the agricultural premises as a public nuisance, making the premises unusable for agricultural purposes; or

          (C)  Displaced by reason of a natural disaster."

     SECTION 2.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Public Lands; Agriculture; Agricultural Enterprise; Lease or Sale

 

Description:

Creates new regulatory provisions governing the lease or sale of public land to agricultural enterprises.

 

 

 

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