Land Use Planning

Renames the land use commission to the state planning commission
and redefines the commission's responsibilities; transfers
jurisdiction of urban and rural land use districts to counties;
requires creation of state land use strategy document and the
adoption of new agricultural district boundaries; establishes
important agricultural lands commission that expires in 2001.

HOUSE OF REPRESENTATIVES                H.B. NO.860        
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1                              PART I.
 2      SECTION 1.  The legislature finds that there is a need to
 3 redefine the relationship of state and county jurisdictions in
 4 the area of land planning and utilization to promote efficiency
 5 and avoid duplication in the current land use system; to
 6 establish clear lines of responsibility for decisionmaking and
 7 oversight; to promote the uniform application of state policies
 8 regarding the protection of Hawaii's environment and economy, and
 9 the provision of shelter and basic necessities of life to all
10 members of the community; and to establish a methodology by which
11 state and county governments can resolve competing interests.
12      The purpose of this part is to emphasize that the focus of
13 the state land use commission is on the broad statewide planning
14 issues it was originally created to oversee, and to limit its
15 review of site specific developments, except for a few clearly
16 delineated instances.  To emphasize this focus, this part renames
17 the land use commission as the state planning commission and
18 clarifies the responsibilities of the renamed commission.
19      SECTION 2.  Chapter 205, Hawaii Revised Statutes, is amended

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 1 by adding two new sections to be appropriately designated and to
 2 read as follows:
 3      "205-    Land use districts.  (a)  In order to ensure the
 4 consideration of statewide concerns by the counties in matters
 5 involving the urban and rural districts, applications for
 6 amendments to district boundaries, county zone changes, or
 7 development approvals shall be referred to the office of planning
 8 for state agency review and comment.
 9      (b)  The state agency review shall be coordinated by the
10 office of planning, and the office shall consolidate state agency
11 comments and transmit them to the appropriate county land use
12 decisionmaking authority.  The office shall present written or
13 oral testimony, as necessary, to the appropriate county land use
14 decisionmaking authority.  In its transmittal and testimony, the
15 office shall state whether or not the proposed development:
16      (1)  Meets the district purposes and standards of this
17           chapter;
18      (2)  Meets the goals, objectives, and guidelines of the
19           Hawaii state plan;
20      (3)  Is consistent with the land use strategy document
21           adopted pursuant to section 205-  ;
22      (4)  Is consistent with the state functional plans and
23           programs under the Hawaii state plan;

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 1      (5)  Has an unreasonable adverse health, environmental, or
 2           socioeconomic effect on residents or surrounding
 3           property;
 4      (6)  Unreasonably burdens state agencies to provide needed
 5           roads, schools, and other state facilities and
 6           services; and
 7      (7)  Provides reasonable measures to mitigate any
 8           unreasonable adverse effects or burdens noted above.
 9      205-    State land use strategy document.  (a)  The
10 planning commission shall adopt a state land use strategy
11 document, hereinafter referred to as the "strategy document",
12 prepared by the office of planning as provided in this section.
13 The strategy document shall be used to guide the decisionmaking
14 of the state planning commission and other appropriate state and
15 county agencies in their planning activities.
16      (b)  The office of planning shall prepare the strategy
17 document in coordination with the commission and other
18 appropriate state and county agencies by December 31, 2000.  In
19 formulating the strategy document, the office shall solicit views
20 and concerns of the general public.  The formulation and revision
21 of the strategy document shall conform to this chapter and shall
22 utilize as guidelines, the goals, objectives, and policies
23 contained in chapter 226.

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 1      (c)  The strategy document shall identify state program
 2 priorities and concerns for the management of resources,
 3 facilities, and services under state jurisdiction within each
 4 county.  The strategy document shall be used to provide early
 5 input on areas of state concern to county planning processes and
 6 to facilitate coordination of state program priorities with
 7 respect to the county or areas within the county to assist in
 8 county planning processes.  The strategy document shall include:
 9      (1)  A discussion of projected growth in population or
10           economic activity within the State and for each county;
11      (2)  Identification of areas of significant resource value
12           to the State or natural hazard areas that warrant
13           limits to development or special management strategies
14           within each county;
15      (3)  An assessment of state infrastructure and service
16           capacity and needs to accommodate existing and future
17           growth in the county or areas within the county; and
18      (4)  A discussion of state or joint state and county actions
19           required to mitigate the impacts of growth on valued
20           resources or state facilities, programs, and services.
21      (d)  The office of planning shall transmit the strategy
22 document to the planning commission for review.  The commission
23 shall hold public hearings on the strategy document pursuant to

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 1 chapter 92.
 2      (e)  Upon completion of public hearings, the office of
 3 planning shall review comments received by the commission on the
 4 strategy document and make amendments, as appropriate, to the
 5 strategy document.  The revised strategy document shall be
 6 transmitted to the commission for adoption.  The commission shall
 7 consider and adopt the revised strategy document for transmittal
 8 to the governor and the legislature.
 9      (f)  The strategy document shall be reviewed periodically by
10 the office of planning pursuant to section 205-18.  Any
11 amendments to the strategy document including revisions initiated
12 pursuant to section 205-18 shall be adopted pursuant to this
13 section."
14      SECTION 3.  Section 205-1, Hawaii Revised Statutes, is
15 amended to read as follows:
16      "205-1 Establishment of the commission.  There shall be a
17 state [land use] planning commission, hereinafter called the
18 commission.  The commission shall consist of nine members who
19 shall hold no other public office and shall be appointed in the
20 manner and serve for the term set forth in section 26-34.  One
21 member shall be appointed from each of the counties and the
22 remainder shall be appointed at large.  The commission shall
23 elect its chairperson from one of its members.  The members shall

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 1 receive no compensation for their services on the commission, but
 2 shall be reimbursed for actual expenses incurred in the
 3 performance of their duties.  Six affirmative votes shall be
 4 necessary for any boundary amendment.
 5      The commission shall be a part of the department of
 6 business, economic development, and tourism for administration
 7 purposes, as provided for in section 26-35.
 8      The commission may engage employees necessary to perform its
 9 duties, including administrative personnel and an executive
10 officer.  The executive officer shall be appointed by the
11 commission and the executive officer's position shall be exempt
12 from civil service.  Departments of the state government shall
13 make available to the commission [such] any data, facilities, and
14 personnel [as] that are necessary for it to perform its duties.
15 The commission may receive and utilize gifts and any funds from
16 the federal or other governmental agencies.  It shall adopt rules
17 guiding its conduct, maintain a record of its activities and
18 accomplishments, and make recommendations to the governor and to
19 the legislature through the governor."
20      SECTION 4.  Section 205-2, Hawaii Revised Statutes, is
21 amended to read as follows:
22      "205-2 Districting and classification of lands.(a)
23 There shall be four major land use districts in which all lands

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 1 in the State shall be placed:  urban, rural, agricultural, and
 2 conservation.  The [land use commission shall group contiguous
 3 land areas suitable for inclusion in one of these four major
 4 districts.] state planning commission shall have the sole
 5 authority to adjust the district boundaries in the conservation
 6 and agricultural districts and the counties shall have the sole
 7 authority to adjust the district boundaries in the rural and
 8 urban districts.  The commission shall set standards for
 9 determining the boundaries of each district[,]; provided that:
10      (1)  In the establishment of boundaries of urban districts
11           those lands that are now in urban use and a sufficient
12           reserve area for foreseeable urban growth shall be
13           included;
14      (2)  In the establishment of boundaries for rural districts,
15           areas of land composed primarily of small farms mixed
16           with very low density residential lots, which may be
17           shown by a minimum density of not more than one house
18           per one-half acre and a minimum lot size of not less
19           than one-half acre shall be included, except as herein
20           provided;
21      (3)  In the establishment of the boundaries of agricultural
22           districts the greatest possible protection shall be
23           given to those lands with a high capacity for intensive

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 1           cultivation[;] and which meet one of the criteria of
 2           subsection (d); and
 3      (4)  In the establishment of the boundaries of conservation
 4           districts, the "forest and water reserve zones"
 5           provided in Act 234, section 2, Session Laws of Hawaii
 6           1957, are renamed "conservation districts" and,
 7           effective as of July 11, 1961, the boundaries of the
 8           forest and water reserve zones theretofore established
 9           pursuant to Act 234, section 2, Session Laws of Hawaii
10           1957, shall constitute the boundaries of the
11           conservation districts; provided that thereafter the
12           power to determine the boundaries of the conservation
13           districts shall be in the commission.
14 In establishing the boundaries of the districts in each county,
15 the commission shall give consideration to the master plan or
16 general plan of the county.
17      (b)  Urban districts shall include activities or uses as
18 provided by ordinances or regulations of the county within which
19 the urban district is situated.
20      (c)  Rural districts shall include activities or uses as
21 characterized by low density residential lots of not more than
22 one dwelling house per one-half acre, except as provided by
23 county ordinance pursuant to section 46-4(c), in areas where

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 1 "city-like" concentration of people, structures, streets, and
 2 urban level of services are absent, and where small farms are
 3 intermixed with low density residential lots except that within a
 4 subdivision, as defined in section 484-1, the commission for good
 5 cause may allow one lot of less than one-half acre, but not less
 6 than 18,500 square feet, or an equivalent residential density,
 7 within a rural subdivision and permit the construction of one
 8 dwelling on [such] the lot[,]; provided that all other dwellings
 9 in the subdivision shall have a minimum lot size of one-half acre
10 or 21,780 square feet.  [Such] The petition for variance may be
11 processed under the special permit procedure.  These districts
12 may include contiguous areas which are not suited to low density
13 residential lots or small farms by reason of topography, soils,
14 and other related characteristics.  These districts may also
15 include open area recreational facilities, including golf courses
16 and golf driving ranges.
17      (d)  Agricultural districts shall include activities or uses
18 as characterized by the cultivation of crops, orchards, forage,
19 and forestry; farming activities or uses related to animal
20 husbandry, aquaculture, and game and fish propagation;
21 aquaculture, which means the production of aquatic plant and
22 animal life for food and fiber within ponds and other bodies of
23 water; wind generated energy production for public, private, and

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                                     H.B. NO.860        

 1 commercial use; bona fide agricultural services and uses which
 2 support the agricultural activities of the fee or leasehold owner
 3 of the property and accessory to any of the above activities,
 4 whether or not conducted on the same premises as the agricultural
 5 activities to which they are accessory, including but not limited
 6 to farm dwellings as defined in section 205-4.5(a)(4), employee
 7 housing, farm buildings, mills, storage facilities, processing
 8 facilities, vehicle and equipment storage areas, and roadside
 9 stands for the sale of products grown on the premises; wind
10 machines and wind farms; small-scale meteorological, air quality,
11 noise, and other scientific and environmental data collection and
12 monitoring facilities occupying less than one-half acre of land,
13 provided that [such] the facilities shall not be used as or
14 equipped for use as living quarters or dwellings; and
15 agricultural parks; and open area recreational facilities[,
16 including golf courses and golf driving ranges]; provided that
17 they are not located within agricultural district lands [with
18 soil classified by the land study bureau's detailed land
19 classification as overall (master) productivity rating class A or
20 B.
21      These districts may include areas which are not used for, or
22 which are not suited to, agricultural and ancillary activities by
23 reason of topography, soils, and other related characteristics.]

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                                     H.B. NO.860        

 1 designated pursuant to paragraphs (1), (2), (3), and (4).
 2      Lands to be considered for agricultural district
 3 classification shall include but not be limited to the following:
 4      (1)  Lands whose agricultural land suitability is identified
 5           as "prime", "unique", or "other" important agricultural
 6           land by the department of agriculture's agricultural
 7           lands of importance to the State of Hawaii (ALISH)
 8           classification system, as classified in 1977;
 9      (2)  Lands with a land study bureau overall (master)
10           productivity rating of A or B, or the productivity
11           rating is A or B if irrigated;
12      (3)  Lands mapped by the land evaluation and site assessment
13           commission pursuant to Act 273, Session Laws of Hawaii,
14           1983, with land evaluation scores above the threshold
15           score established by the land evaluation and site
16           assessment commission; and
17      (4)  Lands not classified by the methods in paragraphs (1)
18           to (3), but which are presently utilized for
19           agricultural production of high-value or unique
20           agricultural commodities including, but not limited to,
21           coffee, taro, watercress, orchard crops, nonirrigated
22           pineapple, lands used for intensive animal husbandry,
23           and lands in commercial agricultural cultivation or

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 1           livestock production in five of the ten years
 2           immediately preceding the date of approval of this Act.
 3      (e)  Conservation districts shall include areas necessary
 4 for protecting watersheds and water sources; preserving scenic
 5 and historic areas; providing park lands, wilderness, and beach
 6 reserves; conserving indigenous or endemic plants, fish, and
 7 wildlife, including those which are threatened or endangered;
 8 preventing floods and soil erosion; forestry; open space areas
 9 whose existing openness, natural condition, or present state of
10 use, if retained, would enhance the present or potential value of
11 abutting or surrounding communities, or would maintain or enhance
12 the conservation of natural or scenic resources; areas of value
13 for recreational purposes; other related activities; and other
14 permitted uses not detrimental to a multiple use conservation
15 concept.
16      (f)  The counties shall bring all county planning and zoning
17 classifications into compliance with the land classifications set
18 forth in this section."
19                             PART II.
20      SECTION 5.  Adoption of new agricultural district
21 boundaries.  (a)  The legislature finds that the state
22 agricultural land use district includes marginal lands that are
23 unsuited for agricultural purposes or which have been developed

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 1 for non-agricultural use or are more suitable for non-
 2 agricultural use.  Reclassification of these lands from the
 3 agricultural district would focus state responsibility on the
 4 regulation of important agricultural lands.  The following
 5 process shall be used to facilitate the reclassification of lands
 6 of lesser agricultural value from the state agricultural district
 7 to other districts as appropriate.
 8      (b)  The office of planning shall prepare district
 9 classification maps showing those lands in the agricultural
10 district which are proposed for reclassification to the urban,
11 rural, or conservation districts.  The office shall identify and
12 prepare these maps in consultation and cooperation with the
13 county planning agencies, department of agriculture, and
14 appropriate agricultural and other interest groups.
15      (c)  The office of planning shall use the land criteria
16 provided in section 205-2(d), Hawaii Revised Statutes, as a basis
17 for determining the lands to be considered for retention in the
18 agricultural district.  The long-range land use patterns and
19 areas designated agricultural or rural in adopted county general
20 and development or community plans shall also be considered in
21 the determination of lands to be proposed for redistricting and
22 lands proposed for retention in the agricultural district.  The
23 office may also consider the resource value of lands within the

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 1 agricultural district for aquifer recharge.
 2      (d)  The office of planning shall ensure that state agencies
 3 are consulted in this process.  The office shall provide
 4 opportunities in each county for public review and comment
 5 throughout the process of identifying potential areas for
 6 amendments to the agricultural district boundaries and
 7 delineating the final proposed boundary amendments.
 8      (e)  The office of planning shall submit recommendations for
 9 boundary amendments to the state planning commission in the form
10 of a report documenting the information used to formulate the
11 recommendations, rationale, proposed district classification
12 maps, and mitigation measures that may be necessary at the time
13 that land use or development applications are submitted to the
14 counties.  The commission shall hold at least one public hearing
15 in each county prior to the final adoption by the commission of
16 the proposed district boundaries for that county.  Notice of the
17 time and place of the hearing shall be published in accordance
18 with chapter 92, Hawaii Revised Statutes.  The notice shall
19 indicate the time and place that the maps showing the proposed
20 district boundaries within the county may be inspected prior to
21 the hearing.  Any person wishing to file recommendations, a
22 written protest, or other comments with the commission shall file
23 the materials within fifteen days of the hearing.

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 1      (f)  No later than forty-five days after the conclusion of
 2 the public hearing, the state planning commission shall approve
 3 or disapprove the proposed district boundary amendments in whole
 4 or in part.  The adoption of the new district boundaries under
 5 this section shall require an affirmative vote by two-thirds of
 6 the total membership of the commission.
 7      (g)  When reviewing the new district boundaries proposed for
 8 reclassification pursuant to this section, the state planning
 9 commission shall specifically consider the following:
10      (1)  The extent to which the proposed reclassification
11           conforms to the district criteria contained in this
12           section; 
13      (2)  The purpose of the reclassification; namely, to remove
14           marginal lands from the agricultural district thereby
15           allowing the State to focus on its responsibilities to
16           regulate prime and unique agricultural lands; and
17      (3)  The extent to which the proposed reclassification
18           conforms to county general and community or development
19           plans.
20      (h)  No individual petitions or requests for
21 reclassification shall be permitted under this section.  District
22 boundary amendment requests which are not part of the
23 recommendations made pursuant to this section shall be subject to

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                                     H.B. NO.860        

 1 the district boundary amendment provisions of section 205-4,
 2 Hawaii Revised Statutes.
 3      (i)  A change in land use district classification of a
 4 parcel or parcels resulting from a state planning commission
 5 decision pursuant to this section may be appealed to the circuit
 6 court of the circuit in which the land in question is situated.
 7 The district boundaries and classification of parcels not subject
 8 to an appeal shall remain in full force and effect.
 9      The appeal shall be filed within sixty days of the date of
10 the state planning commission's decision.  The appeal shall be in
11 accord with chapter 91, Hawaii Revised Statutes, and the Hawaii
12 rules of civil procedure.
13      (j)  All proposed uses or projects on lands which are
14 reclassified by the state planning commission pursuant to this
15 section and which require approval by a state or county agency or
16 decisionmaking body, shall be referred to the office of planning
17 for review and comment by state agencies as necessary.  The
18 applicable state or county agency or officer shall also advise
19 state agencies commenting under subsection (d) of any application
20 which may affect their identified area of state interest.  The
21 agency or officer shall allow the office to coordinate state
22 agency reviews and comments on the effect of the proposed project
23 prior to any approval.

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                                     H.B. NO.860        

 1      (k)  The new district boundaries shall be adopted in final
 2 form on or before December 31, 2000.
 3      (l)  The counties shall bring all county planning and zoning
 4 classifications into compliance with the land classifications set
 5 forth in this section.
 6      SECTION 6.  Section 205-4, Hawaii Revised Statutes, is
 7 amended by amending the title and subsection (a) to read as
 8 follows:
 9      "205-4 [Amendments to district boundaries involving land
10 areas greater than fifteen acres.] Amendment process.  (a)  Any
11 department or agency of the State, any department or agency of
12 the county in which the land is situated, or any person with a
13 property interest in the land sought to be reclassified, may
14 petition the [land use] state planning commission for a change in
15 the boundary of a district.  This section applies to all
16 petitions for changes in district boundaries of lands within the
17 conservation and agricultural districts [and all petitions for
18 changes in district boundaries involving lands greater than
19 fifteen acres in the agricultural, rural, and urban districts,
20 except as provided in section 201G-118.  The land use commission
21 shall adopt rules pursuant to chapter 91 to implement section
22 201G-118]."
23      SECTION 7.  Section 205-4.5, Hawaii Revised Statutes, is

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                                     H.B. NO.860        

 1 amended to read as follows:
 2      "205-4.5  Permissible uses within the agricultural
 3 districts.(a)  Within the agricultural district, all lands
 4 [with soil classified by the land study bureau's detailed land
 5 classification as overall (master) productivity rating class A or
 6 B] designated as agricultural lands under section 205-2(d)(1),
 7 (2), (3), and (4), shall be restricted to the following permitted
 8 uses:
 9      (1)  Cultivation of crops, including but not limited to
10           flowers, vegetables, foliage, fruits, forage, and
11           timber;
12      (2)  Game and fish propagation;
13      (3)  Raising of livestock, including but not limited to
14           poultry, bees, fish, or other animal or aquatic life
15           that are propagated for economic or personal use;
16      (4)  Farm dwellings, employee housing, farm buildings, or
17           activity or uses related to farming and animal
18           husbandry;
19           Farm dwelling as used in this paragraph means a single-
20           family dwelling located on and used in connection with
21           a farm, including clusters of single-family farm
22           dwellings permitted within agricultural parks developed
23           by the State, or where agricultural activity provides

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                                     H.B. NO.860        

 1           income to the family occupying the dwelling;
 2      (5)  Public institutions and buildings which are necessary
 3           for agricultural practices;
 4      (6)  Public and private open area types of recreational uses
 5           including day camps, picnic grounds, parks, and riding
 6           stables, but not including dragstrips, airports, drive-
 7           in theaters, golf courses, golf driving ranges, country
 8           clubs, and overnight camps;
 9      (7)  Public, private, and quasi-public utility lines and
10           roadways, transformer stations, communications
11           equipment buildings, solid waste transfer stations,
12           major water storage tanks, and appurtenant small
13           buildings such as booster pumping stations, but not
14           including offices or yards for equipment, material,
15           vehicle storage, repair or maintenance, or treatment
16           plants, or corporation yards, or other like structures;
17      (8)  Retention, restoration, rehabilitation, or improvement
18           of buildings or sites of historic or scenic interest;
19      (9)  Roadside stands for the sale of agricultural products
20           grown on the premises;
21     (10)  Buildings and uses, including [but not limited to]
22           mills, storage, and processing facilities, maintenance
23           facilities, and vehicle and equipment storage areas

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                                     H.B. NO.860        

 1           that are normally considered directly accessory to the
 2           abovementioned uses and are permitted under section
 3           205-2(d);
 4     (11)  Agricultural parks; or
 5     (12)  Wind energy facilities, including the appurtenances
 6           associated with the production and transmission of wind
 7           generated energy; provided that such facilities and
 8           appurtenances are compatible with agriculture uses and
 9           cause minimal adverse impact on agricultural land.
10      (b)  Uses not expressly permitted in subsection (a) shall be
11 prohibited, except the uses permitted [as provided] in [sections
12 205-6 and] section 205-8, and construction of single-family
13 dwellings on lots existing before June 4, 1976.  Any other law to
14 the contrary notwithstanding, no subdivision of land within the
15 agricultural district [with soil classified by the land study
16 bureau's detailed land classification as overall (master)
17 productivity rating class A or B] designated as agricultural
18 lands under section 205-2(d)(1), (2), (3), and (4), shall be
19 approved by a county unless the [said A and B] lands within the
20 subdivision shall be made subject to the restriction on uses as
21 prescribed in this section and to the condition that the uses
22 shall be primarily in pursuit of an agricultural activity.
23      Any deed, lease, agreement of sale, mortgage, or other

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                                     H.B. NO.860        

 1 instrument of conveyance covering any land within the
 2 agricultural subdivision shall expressly contain the restriction
 3 on uses and the condition as prescribed in this section which
 4 restriction and condition shall be encumbrances running with the
 5 land until such time that the land is reclassified to a land use
 6 district other than agricultural district.
 7      If the foregoing requirement of encumbrances running with
 8 the land jeopardizes the owner or lessee from obtaining mortgage
 9 financing from any of the mortgage lending agencies set forth
10 hereinbelow, and [said] the requirement is the sole reason for
11 failure to obtain mortgage financing, then [such] the requirement
12 of encumbrances shall, insofar as [such] the mortgage financing
13 is so jeopardized, be conditionally waived by the appropriate
14 county enforcement officer; provided that [such] the conditional
15 waiver shall thereafter become effective only in the event that
16 the property is subjected to foreclosure proceedings by the
17 mortgage lender.
18      The mortgage lending agencies mentioned hereinabove are the
19 Federal Housing Administration, Federal National Mortgage
20 Association, Department of Veterans [Administration,] Affairs,
21 Small Business Administration, United States Department of
22 Agriculture, Federal Land Bank of Berkeley, Federal Intermediate
23 Credit Bank of Berkeley, Berkeley Bank for Cooperatives, and any

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                                     H.B. NO.860        

 1 other federal, state, or private mortgage lending agency
 2 qualified to do business in Hawaii, and their respective
 3 successors and assigns.
 4      (c)  Within the agricultural district all lands[, with soil
 5 classified by the land study bureau's detailed land
 6 classification as overall (master) productivity rating class C,
 7 D, E, or U] shall be restricted to the uses permitted for
 8 agricultural districts as set forth in section 205-5(b)."
 9      SECTION 8.  Section 205-5, Hawaii Revised Statutes, is
10 amended by amending subsections (b) and (c) to read as follows:
11      "(b)  Within agricultural districts, uses compatible to the
12 activities described in section 205-2 as determined by the
13 commission shall be permitted; provided that accessory
14 agricultural uses and services described in sections 205-2 and
15 205-4.5 may be further defined by each county by zoning
16 ordinance.  Other uses may be allowed by special permits issued
17 pursuant to this chapter.  The minimum lot size in agricultural
18 districts shall be determined by each county by zoning ordinance,
19 subdivision ordinance, or other lawful means; provided that the
20 minimum lot size for any agricultural use shall not be less than
21 [one acre,] five acres, except as provided [herein.] in this
22 chapter.  If the county finds that unreasonable economic hardship
23 to the owner or lessee of land cannot otherwise be prevented or

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                                     H.B. NO.860        

 1 where land utilization is improved, the county may allow lot
 2 sizes of less than the minimum lot size as specified by law for
 3 lots created by a consolidation of existing lots within an
 4 agricultural district and the resubdivision thereof; provided
 5 that [the]:
 6      (1)  The consolidation and resubdivision do not result in an
 7           increase in the number of lots over the number existing
 8           prior to consolidation; and [provided further that in]
 9      (2)  In no event shall a lot, which is equal to or exceeds
10           the minimum lot size of [one acre] five acres be less
11           than that minimum after the consolidation and
12           resubdivision action.  The county may also allow lot
13           sizes of less than the minimum lot size as specified by
14           law for lots created or used for public, private, and
15           quasi-public utility purposes, and for lots resulting
16           from the subdivision of abandoned roadways and railroad
17           easements.
18      (c)  Unless authorized by special permit issued pursuant to
19 this chapter, only the following uses shall be permitted within
20 rural districts:
21      (1)  Low density residential uses;
22      (2)  Agricultural uses; [and]
23      (3)  Public, quasi-public, and public utility facilities[.];

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                                     H.B. NO.860        

 1           and
 2      (4)  Golf courses and golf driving ranges.
 3      In addition, the minimum lot size for any low density
 4 residential use shall be one-half acre and there shall be but one
 5 dwelling house per one-half acre, except as provided for in
 6 section 205-2."
 7      SECTION 9.  Section 205-12, Hawaii Revised Statutes, is
 8 amended to read as follows:
 9      "205-12  [Enforcement.  The appropriate officer or agency
10 charged with the administration of county zoning laws shall]
11 Monitoring and enforcement.  (a)  The appropriate county planning
12 department shall provide the commission with an annual report on
13 the status of the development of lands reclassified by the
14 commission and located within that county.
15      (b)  The appropriate county planning department, the
16 appropriate officer or agency charged with the administration of
17 county zoning laws, and the State shall have the authority to
18 enforce within each county the land use classification districts
19 adopted by the [land use] state planning commission and the
20 restriction on use and the condition relating to agricultural
21 districts under section 205-4.5 and shall report to the
22 commission all violations."
23      SECTION 10.  Section 205-17, Hawaii Revised Statutes, is

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                                     H.B. NO.860        

 1 amended to read as follows:
 2      "205-17  [Land use] State planning commission
 3 decisionmaking criteria.  (a)  In its review of any petition for
 4 reclassification of district boundaries pursuant to this chapter,
 5 the commission shall [specifically] consider and balance the
 6 following:
 7      (1)  The extent to which the proposed reclassification
 8           conforms to the applicable goals, objectives, and
 9           policies of the Hawaii state plan and relates to the
10           applicable priority guidelines of the Hawaii state plan
11           [and], the adopted functional plans;
12      (2)  The extent to which the proposed reclassification
13           conforms to the applicable district standards[;], and
14           the land use strategy document adopted pursuant to
15           section 205-  ; and
16      (3)  The impact of the proposed reclassification on the
17           following areas of state concern:
18           (A)  Preservation or maintenance of important natural
19                systems or habitats;
20           (B)  Maintenance of valued cultural, historical, or
21                natural resources;
22           (C)  Maintenance of other natural resources relevant to
23                Hawaii's economy, including, but not limited to,

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                                     H.B. NO.860        

 1                agricultural resources;
 2           (D)  Commitment of state funds and resources;
 3           (E)  Provision for employment opportunities and
 4                economic development; and
 5           (F)  Provision for housing opportunities for all income
 6                groups, particularly the low, low-moderate, and
 7                gap groups; and
 8      (4)  The representations and commitments made by the
 9           petitioner in securing a boundary change.
10      (b)  Any petition for reclassification of agricultural land
11 shall be submitted to the commission to first determine whether
12 or not the agricultural lands are important agricultural lands.
13 The commission shall then consider:
14      (1)  The importance of the land for agriculture based on the
15           land evaluation rating and other evidence presented as
16           to the suitability of the land for agricultural
17           purposes;
18      (2)  The public benefit provided by reclassification.  The
19           commission must find that by a preponderance of the
20           evidence presented that on balance the public benefit
21           from the reclassification outweighs the retention of
22           the land in agriculture; and
23      (3)  Whether the proposed reclassification will have

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                                     H.B. NO.860        

 1           significant impact upon the viability of agricultural
 2           operations on important agricultural lands.
 3      (c)  When adjusting the boundaries in the rural and urban
 4 districts, the counties shall consider and balance the
 5 decisionmaking criteria set forth in subsection (a).
 6      (d)  In its review of any petition for reclassification of
 7 district boundaries, the commission shall limit its review to
 8 whether reclassification is permitted pursuant to the criteria
 9 and standards set forth in this chapter and shall not engage in
10 zoning matters reserved to the counties pursuant to section
11 46-4."
12      SECTION 11.  Section 205-18, Hawaii Revised Statutes, is
13 amended to read as follows:
14      "205-18  [Periodic review of districts.] Five-year boundary
15 review process.  The office of planning shall undertake a review
16 of the state land use strategy document and of the classification
17 and districting of all lands in the State, within five years from
18 December 31, [1985,] 1997, and every fifth year thereafter.  The
19 office, in its five-year boundary review, shall focus its efforts
20 on reviewing the Hawaii state plan, county general plans, [and]
21 county development and community plans[.], and the existing land
22 use process.  Upon completion of the five-year boundary review,
23 the office shall submit a report of the findings to the

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                                     H.B. NO.860        

 1 commission.  The office may initiate amendments to the strategy
 2 document to further the land use strategy goals, policies, and
 3 objectives.  The office may also initiate state land use boundary
 4 amendments which it deems appropriate to conform to these plans.
 5 The office may seek assistance of appropriate state and county
 6 agencies and may employ consultants and undertake studies in
 7 making this review."
 8      SECTION 12.  Section 225M-2, Hawaii Revised Statutes, is
 9 amended by amending subsection (b) to read as follows:
10      "(b)  The office of planning shall gather, analyze, and
11 provide information to the governor to assist in the overall
12 analysis and formulation of state policies and strategies to
13 provide central direction and cohesion in the allocation of
14 resources and effectuation of state activities and programs, and
15 effectively address current or emerging issues and opportunities.
16 More specifically, the office shall engage in the following
17 activities:
18      (1)  State comprehensive planning and program coordination.
19           Formulating and articulating comprehensive statewide
20           goals, objectives, policies, and priorities, and
21           coordinating their implementation through the statewide
22           planning system established in part II of chapter 226;
23      (2)  Strategic planning.  Identifying and analyzing

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                                     H.B. NO.860        

 1           significant issues, problems, and opportunities
 2           confronting the State, and formulating strategies and
 3           alternative courses of action in response to identified
 4           problems and opportunities by:
 5           (A)  Providing in-depth policy research, analysis, and
 6                recommendations on existing or potential areas of
 7                critical state concern;
 8           (B)  Examining and evaluating the effectiveness of
 9                state programs in implementing state policies and
10                priorities;
11           (C)  Monitoring and forecasting through surveys,
12                environmental scanning, modeling, and other
13                techniques--current and future social, economic,
14                and physical conditions and trends; and
15           (D)  Developing, in collaboration with affected public
16                or private agencies and organizations,
17                implementation plans and schedules and, where
18                appropriate, assisting in the mobilization of
19                resources to meet identified needs;
20      (3)  Planning coordination and cooperation.  Facilitating
21           coordinated and cooperative planning and policy
22           development and implementation activities among state
23           agencies, and between the state, county, and federal

Page 30                                                    
                                     H.B. NO.860        

 1           governments, by:
 2           (A)  Reviewing, assessing, and coordinating, as
 3                necessary, major plans, programs, projects, and
 4                regulatory activities existing or proposed by
 5                state and county agencies; and
 6           (B)  Formulating mechanisms to simplify, streamline, or
 7                coordinate interagency development and regulatory
 8                processes;
 9      (4)  Planning information system.  Collecting, analyzing,
10           maintaining, and disseminating data and information to
11           further effective state planning, policy analysis and
12           development, and delivery of government services by:
13           (A)  Assembling, organizing, evaluating, and
14                classifying existing data and performing necessary
15                basic research in order to provide a common data
16                base for governmental planning;
17           (B)  Planning, developing, implementing, and
18                coordinating a statewide planning and geographic
19                information system.  The office shall be the lead
20                agency responsible for planning and coordinating
21                the establishment of a multi-agency, statewide
22                geographic information system and the development
23                of planning applications including spatial data

Page 31                                                    
                                     H.B. NO.860        

 1                analyses to enhance decision making; and
 2           (C)  Maintaining a centralized depository of state and
 3                national planning references;
 4      (5)  Land use planning.  Developing and presenting the
 5           position of the State in all boundary change petitions
 6           and proceedings before the [land use] state planning
 7           commission[,] and county land use decisionmaking
 8           authorities, assisting state agencies in the
 9           development and submittal of petitions for land use
10           district boundary amendments, and [conducting periodic
11           reviews of the classification and districting of all
12           lands in the State, as specified in] performing
13           functions pursuant to chapter 205[;], including
14           preparation of the state land use strategy document,
15           coordination of state agency project reviews, and
16           conducting five-year boundary reviews;
17      (6)  Coastal and ocean policy management.  Carrying out the
18           lead agency responsibilities for the Hawaii coastal
19           zone management program, as specified in chapter 205A.
20           Also, developing and maintaining an ocean and coastal
21           resources information, planning, and management system
22           further developing and coordinating implementation of
23           the ocean resources management plan, and formulating

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                                     H.B. NO.860        

 1           ocean policies with respect to the exclusive economic
 2           zone, coral reefs, and national marine sanctuaries;
 3      (7)  Regional planning and studies.  Conducting plans and
 4           studies to determine:
 5           (A)  The capability of various regions within the State
 6                to support projected increases in both resident
 7                populations and visitors;
 8           (B)  The potential physical, social, economic, and
 9                environmental impact on these regions resulting
10                from increases in both resident populations and
11                visitors;
12           (C)  The maximum annual visitor carrying capacity for
13                the State by region, county, and island; and
14           (D)  The appropriate guidance and management of
15                selected regions and areas of statewide critical
16                concern.
17           The studies in subparagraphs (A) to (C) shall be
18           conducted at appropriate intervals, but not less than
19           once every five years; and
20      (8)  Regional, national, and international planning.
21           Participating in and assuring that state plans,
22           policies, and objectives are consistent, to the extent
23           practicable, with regional, national, and international

Page 33                                                    
                                     H.B. NO.860        

 1           planning efforts."
 2      SECTION 13.  Section 226-52, Hawaii Revised Statutes, is
 3 amended to read as follows:
 4      "226-52  Statewide planning system.(a)  The statewide
 5 planning system shall consist of the following policies, plans,
 6 and programs:
 7      (1)  The overall theme, goals, objectives, and policies
 8           established in this chapter that shall provide the
 9           broad guidelines for the State;
10      (2)  The priority guidelines established in this chapter
11           that shall provide guidelines for decisionmaking by the
12           State and the counties for the immediate future and set
13           priorities for the allocation of resources.  The
14           formulation and revision of state functional plans
15           shall be in conformance with the priority guidelines;
16      (3)  State functional plans that shall be prepared to
17           address, but not be limited to, the areas of
18           agriculture, conservation lands, education, energy,
19           higher education, health, historic preservation,
20           housing, recreation, tourism, and transportation.  The
21           preparing agency for each state functional plan shall
22           also consider applicable federal laws, policies, or
23           programs that impact upon the functional plan area.

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                                     H.B. NO.860        

 1           State functional plans shall define, implement, and be
 2           in conformance with the overall theme, goals,
 3           objectives, policies, and priority guidelines contained
 4           within this chapter.  County general plans and
 5           development plans shall be taken into consideration in
 6           the formulation and revision of state functional plans;
 7      (4)  County general plans that shall indicate desired
 8           population and physical development patterns for each
 9           county and regions within each county.  In addition,
10           county general plans or development plans shall address
11           the unique problems and needs of each county and
12           regions within each county.  County general plans or
13           development plans shall further define the overall
14           theme, goals, objectives, policies, and priority
15           guidelines contained within this chapter.  State
16           functional plans shall be taken into consideration in
17           amending the county general plans; [and]
18      (5)  State programs that shall include but not be limited to
19           programs involving coordination and review; research
20           and support; design, construction, and maintenance;
21           services; and regulatory powers.  State programs that
22           exercise coordination and review functions shall
23           include but not be limited to the state clearinghouse

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                                     H.B. NO.860        

 1           process, the capital improvements program, and the
 2           coastal zone management program.  State programs that
 3           exercise regulatory powers in resource allocation shall
 4           include but not be limited to the land use and
 5           management programs administered by the [land use]
 6           state planning commission and the board of land and
 7           natural resources.  State programs shall further
 8           define, implement, and be in conformance with the
 9           overall theme, goals, objectives, and policies, and
10           shall utilize as guidelines the priority guidelines
11           contained within this chapter, [and] the state
12           functional plans approved pursuant to this chapter[.],
13           and the state land use strategy document adopted
14           pursuant to section 205-  ; and
15      (6)  The state land use strategy document adopted pursuant
16           to section 205-   that identifies state priorities and
17           concerns for the direction and pattern of growth within
18           the State.  The document shall provide guidelines for
19           land use decisionmaking by the state planning
20           commission and the counties.  The formulation and
21           revision of the document shall be in conformance with
22           the overall theme, goals, objectives, policies, and
23           priority guidelines contained in this chapter.

Page 36                                                    
                                     H.B. NO.860        

 1      (b)  The statewide planning system shall also consist of
 2 several implementation mechanisms, including:
 3      (1)  Overall plan review, coordination, and evaluation.
 4           Overall plan review, coordination, and evaluation shall
 5           be conducted by the office;
 6      (2)  The state budgetary, land use, and other decisionmaking
 7           processes.  The state budgetary, land use, and other
 8           decisionmaking processes shall consist of:
 9           (A)  The program appropriations process.  The
10                appropriation of funds for major programs under
11                the biennial and supplemental budgets shall be in
12                conformance with the overall theme, goals,
13                objectives, and policies, and shall utilize as
14                guidelines the priority guidelines contained
15                within this chapter, and the state functional
16                plans approved pursuant to this chapter;
17           (B)  The capital improvement project appropriations
18                process.  The appropriation of funds for major
19                plans and projects under the capital improvements
20                program shall be in conformance with the overall
21                theme, goals, objectives, and policies, and shall
22                utilize as guidelines the priority guidelines
23                contained within this chapter, and the state

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                                     H.B. NO.860        

 1                functional plans approved pursuant to this
 2                chapter;
 3           (C)  The budgetary review process of the department of
 4                budget and finance.  The budgetary review and
 5                allocation process of the department of budget and
 6                finance shall be in conformance with the overall
 7                theme, goals, objectives, and policies, and shall
 8                utilize as guidelines the priority guidelines
 9                contained within this chapter, and the state
10                functional plans approved pursuant to this
11                chapter;
12           (D)  Land use decisionmaking processes of state
13                agencies.  Land use decisions made by state
14                agencies shall be in conformance with the overall
15                theme, goals, objectives, and policies, and shall
16                utilize as guidelines the priority guidelines
17                contained within this chapter, [and] the state
18                functional plans approved pursuant to this
19                chapter[.], and the state land use strategy
20                document adopted pursuant to section 205-  .  The
21                rules adopted by appropriate state agencies to
22                govern land use decisionmaking shall be in
23                conformance with the overall theme, goals,

Page 38                                                    
                                     H.B. NO.860        

 1                objectives, and policies contained within this
 2                chapter; and
 3           (E)  All other regulatory and administrative
 4                decisionmaking processes of state agencies, which
 5                shall be in conformance with the overall theme,
 6                goals, objectives, and policies, and shall utilize
 7                as guidelines the priority guidelines contained
 8                within this chapter, [and] the state functional
 9                plans approved pursuant to this chapter[.], and
10                the state land use strategy document adopted
11                pursuant to section 205-  .  Rules adopted by
12                state agencies to govern decisionmaking shall be
13                in conformance with the overall theme, goals,
14                objectives, and policies contained within this
15                chapter;
16      (3)  The strategic planning processes.  The office and other
17           state agencies shall conduct strategic planning
18           activities to identify and analyze significant issues,
19           problems, and opportunities confronting the State,
20           including the examination and evaluation of state
21           programs in implementing state policies and the
22           formulation of strategies and alternative courses of
23           action in response to identified problems and

Page 39                                                    
                                     H.B. NO.860        

 1           opportunities.  Strategic planning processes may
 2           include the conduct of surveys, modeling, and other
 3           monitoring and forecasting instruments such as
 4           environmental scanning to assess current and future
 5           social, economic, and physical conditions and trends.
 6           In conducting strategic planning activities, the office
 7           and other state agencies shall ensure that general
 8           public and agency concerns are solicited and taken into
 9           consideration.  The formation of task forces, ad hoc
10           committees, or other advisory bodies comprised of
11           interested parties may serve to facilitate public
12           involvement in specific planning projects; and
13      (4)  Other coordination processes which include the use of
14           the state clearinghouse process.  The state
15           clearinghouse shall coordinate the review of all
16           federally-assisted and direct federal development
17           projects which are covered under the state
18           clearinghouse process."
19      SECTION 14.  Section 226-59, Hawaii Revised Statutes, is
20 amended by amending subsection (a) to read as follows:
21      "(a)  The formulation, administration, and implementation of
22 state programs shall be in conformance with the overall theme,
23 goals, objectives, and policies, and shall utilize as guidelines

Page 40                                                    
                                     H.B. NO.860        

 1 the priority guidelines contained within this chapter, [and] the
 2 state functional plans approved pursuant to this chapter[.], and
 3 the state land use strategy document adopted pursuant to section
 4 205-  ."
 5      SECTION 15.  Section 205-3.1, Hawaii Revised Statutes, is
 6 repealed.
 7      ["205-3.1  Amendments to district boundaries.(a)
 8 District boundary amendments involving land areas greater than
 9 fifteen acres shall be processed by the land use commission
10 pursuant to section 205-4.
11      (b)  Any department or agency of the State, and department
12 or agency of the county in which the land is situated, or any
13 person with a property interest in the land sought to be
14 reclassified may petition the appropriate county land use
15 decision-making authority of the county in which the land is
16 situated for a change in the boundary of a district involving
17 lands less than fifteen acres presently in the agricultural,
18 rural, and urban districts.
19      (c)  District boundary amendments involving land areas of
20 fifteen acres or less, except in conservation districts, shall be
21 determined by the appropriate county land use decision-making
22 authority for said district and shall not require consideration
23 by the land use commission pursuant to section 205-4.  District

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                                     H.B. NO.860        

 1 boundary amendments involving land areas of fifteen acres or less
 2 in conservation districts shall be processed by the land use
 3 commission pursuant to section 205-4.  The appropriate county
 4 land use decision-making authority may consolidate proceedings to
 5 amend state land use district boundaries pursuant to this
 6 subsection, with county proceedings to amend the general plan,
 7 development plan, zoning of the affected land or such other
 8 proceedings.  Appropriate ordinances and rules to allow
 9 consolidation of such proceedings may be developed by the county
10 land use decision-making authority.
11      (d)  The county land use decision-making authority shall
12 serve a copy of the application for a district boundary amendment
13 to the land use commission and the department of business,
14 economic development, and tourism and shall notify the commission
15 and the department of the time and place of the hearing and the
16 proposed amendments scheduled to be heard at the hearing.  A
17 change in the state land use district boundaries pursuant to this
18 subsection shall become effective on the day designated by the
19 county land use decision-making authority in its decision.
20 Within sixty days of the effective date of any decision to amend
21 state land use district boundaries by the county land use
22 decision-making authority, the decision and the description and
23 map of the affected property shall be transmitted to the land use

Page 42                                                    
                                     H.B. NO.860        

 1 commission and the department of business, economic development,
 2 and tourism by the county planning director."]
 3      SECTION 16.  Section 205-6, Hawaii Revised Statutes, is
 4 repealed.
 5      ["205-6 Special permit.(a)  The county planning
 6 commission may permit certain unusual and reasonable uses within
 7 agricultural and rural districts other than those for which the
 8 district is classified.  Any person who desires to use the
 9 person's land within an agricultural or rural district other than
10 for an agricultural or rural use, as the case may be, may
11 petition the planning commission of the county within which the
12 person's land is located for permission to use the person's land
13 in the manner desired.  Each county may establish the appropriate
14 fee for processing the special permit petition.
15      (b)  The planning commission, upon consultation with the
16 central coordinating agency, except in counties where the
17 planning commission is advisory only in which case the central
18 coordinating agency, shall establish by rule or regulation, the
19 time within which the hearing and action on petition for special
20 permit shall occur.  The county planning commission shall notify
21 the land use commission and such persons and agencies that may
22 have an interest in the subject matter of the time and place of
23 the hearing.

Page 43                                                    
                                     H.B. NO.860        

 1      (c)  The county planning commission may under such
 2 protective restrictions as may be deemed necessary, permit the
 3 desired use, but only when the use would promote the
 4 effectiveness and objectives of this chapter.  A decision in
 5 favor of the applicant shall require a majority vote of the total
 6 membership of the county planning commission.
 7      (d)  Special permits for land the area of which is greater
 8 than fifteen acres shall be subject to approval by the land use
 9 commission.  The land use commission may impose additional
10 restrictions as may be necessary or appropriate in granting such
11 approval, including the adherence to representations made by the
12 applicant.
13      (e)  A copy of the decision together with the complete
14 record of the proceeding before the county planning commission on
15 all special permit requests involving a land area greater than
16 fifteen acres shall be transmitted to the land use commission
17 within sixty days after the decision is rendered.  Within
18 forty-five days after receipt of the complete record from the
19 county planning commission, the land use commission shall act to
20 approve, approve with modification, or deny the petition.  A
21 denial either by the county planning commission or by the land
22 use commission, or a modification by the land use commission, as
23 the case may be, of the desired use shall be appealable to the

Page 44                                                    
                                     H.B. NO.860        

 1 circuit court of the circuit in which the land is situated and
 2 shall be made pursuant to the Hawaii rules of civil procedure.
 3      (f)  Land uses substantially involving or supporting
 4 educational ecotourism, related to the preservation of native
 5 Hawaiian endangered, threatened, proposed, and candidate species,
 6 that are allowed in an approved habitat conservation plan under
 7 section 195D-21 or safe harbor agreement under section 195D-22,
 8 which are not identified as permissible uses within the
 9 agricultural district under sections 205-2 and 205-4.5, may be
10 permitted in the agricultural district by special permit under
11 this section, on lands with soils classified by the land study
12 bureau's detailed land classification as overall (master)
13 productivity rating class C, D, E, or U."]
14                             PART III.
15      SECTION 17.  Section 196D-10, Hawaii Revised Statutes, is
16 amended by amending subsection (a) to read as follows:
17      "(a)  Those functions identified in paragraphs (1) and (2)
18 insofar as they relate to the permit application, review,
19 processing, issuance, and monitoring of laws, and rules and to
20 the enforcement of terms, conditions, and stipulations of permits
21 and other authorizations issued by agencies with respect to the
22 development, construction, installation, operation, maintenance,
23 repair, and replacement of the project, or any portion or

Page 45                                                    
                                     H.B. NO.860        

 1 portions thereof, are transferred to the department.  With
 2 respect to each of the statutory authorities cited in paragraphs
 3 (1) and (2), the transferred functions include all enforcement
 4 functions of the agencies or their officials under the statute
 5 cited as may be related to the enforcement of the terms,
 6 conditions, and stipulations of permits, including but not
 7 limited to the specific sections of the statute cited.
 8 "Enforcement", for purposes of this transfer of functions,
 9 includes monitoring and any other compliance or oversight
10 activities reasonably related to the enforcement process.  These
11 transferred functions include:
12      (1)  [Such] The functions of the [land use] state planning
13           commission related to[:  district boundary amendments
14           as set forth in section 205-3.1 et seq.; and] changes
15           in zoning as set forth in section 205-5; and
16      (2)  The permit approval and enforcement functions of the
17           director of transportation or other appropriate
18           official or entity in the department of transportation
19           related to permits or approvals issued for the use of
20           or commercial activities in or affecting the ocean
21           waters and shores of the State under chapter 266."
22      SECTION 18.  Section 205-5.1, Hawaii Revised Statutes, is
23 amended by amending subsection (c) to read as follows:

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                                     H.B. NO.860        

 1      "(c)  The use of an area for geothermal development
 2 activities within a geothermal resource subzone shall be governed
 3 by the board within the conservation district and, except as
 4 herein provided, by state and county statutes, ordinances, and
 5 rules not inconsistent herewith within agricultural, rural, and
 6 urban districts, except that no [land use] state planning
 7 commission approval [or special use permit procedures under
 8 section 205-6] shall be required for the use of [such] these
 9 subzones.  In the absence of provisions in the county general
10 plan and zoning ordinances specifically relating to the use and
11 location of geothermal development activities in an agricultural,
12 rural, or urban district, the appropriate county authority may
13 issue a geothermal resource permit to allow geothermal
14 development activities.  "Appropriate county authority" means the
15 county planning commission unless some other agency or body is
16 designated by ordinance of the county council.  Such uses as are
17 permitted by county general plan and zoning ordinances, by the
18 appropriate county authority, shall be deemed to be reasonable
19 and to promote the effectiveness and objectives of this chapter.
20 Chapters [177, 178,] 182, 183, 183C, 205A, 226, [342,] 342B to
21 342N, and 343 shall apply as appropriate.  If provisions in the
22 county general plan and zoning ordinances specifically relate to
23 the use and location of geothermal development activities in an

Page 47                                                    
                                     H.B. NO.860        

 1 agricultural, rural, or urban district, the provisions shall
 2 require the appropriate county authority to conduct a public
 3 hearing on any application for a geothermal resource permit to
 4 determine whether the use is in conformity with the criteria
 5 specified in subsection (e) for granting geothermal resource
 6 permits; provided that within the urban, rural, and agricultural
 7 land use districts, direct use applications of geothermal
 8 resources are permitted without any application for a geothermal
 9 resource permit both within and outside of areas designated as
10 geothermal resource subzones pursuant to section 205-5.2 if
11 [such] the direct use applications are in conformance with all
12 other applicable state and county land use [regulations] rules
13 and are in conformance with this chapter."
14                             PART IV.
15      SECTION 19.  The legislature finds that article XI,
16 section 3 of the state constitution mandates the State to
17 conserve and protect agricultural lands, promote diversified
18 agriculture, increase agricultural self-sufficiency, and assure
19 the availability of agriculturally suitable lands.  Section 3
20 also requires the legislature to provide standards and criteria
21 to accomplish these objectives.  Furthermore, any
22 reclassification or rezoning of lands identified by the State as
23 important agricultural lands must meet the standards and criteria

Page 48                                                    
                                     H.B. NO.860        

 1 established by the legislature, and must be approved by two-
 2 thirds of the membership of the decisionmaking body responsible
 3 for the reclassification or rezoning action.
 4      It is the intent of this part to fulfill the state
 5 constitutional mandate to establish criteria and standards to
 6 meet the State's agricultural objectives.  This shall be
 7 accomplished through the establishment of a temporary commission
 8 authorized to develop principles, criteria, and standards to meet
 9 the State's agricultural land use policy for important
10 agricultural lands.
11      SECTION 20.  State of Hawaii important agricultural lands
12 commission; established.  (a)  There is established the State of
13 Hawaii important agricultural lands commission to serve for a
14 period of two years.  The commission shall be attached to the
15 office of planning for administrative purposes.  The commission
16 shall be comprised of fifteen voting members as follows:  the
17 chairperson of the board of agriculture, the planning directors
18 of each of the four counties, the director of the agribusiness
19 development corporation, the chairperson of the board of land and
20 natural resources, and the director of the office of planning, or
21 their designated representatives; and seven members appointed by
22 the governor.  Of the seven members appointed by the governor,
23 two shall be appointed from a list of five persons nominated by

Page 49                                                    
                                     H.B. NO.860        

 1 the president of the senate and two shall be appointed from a
 2 list of five persons nominated by the speaker of the house of
 3 representatives.  The appointed members shall include
 4 representatives from state and federal agricultural research and
 5 service agencies, small and large farmers, landowners,
 6 agricultural workers, environmental organizations, and native
 7 Hawaiian organizations, as well as the general public; provided
 8 that the native Hawaiian member shall be appointed from a list of
 9 five persons submitted by the office of Hawaiian affairs.  At
10 least one appointed member shall be from each county.  The
11 director of the office of planning shall be the chairperson of
12 the commission.  Any vacancy on the commission shall be filled in
13 the same manner in which the original position was filled.  The
14 members shall receive no compensation for their services, but
15 shall be reimbursed for actual expenses incurred in the
16 performance of their duties.
17      (b)  The commission shall develop a set of criteria,
18 standards, and procedures (1) for the designation of important
19 agricultural lands to the State; and (2) to guide land use
20 decisionmaking involving designated important agricultural lands,
21 to further the objectives of article XI, section 3, of the state
22 constitution.  The criteria, standards, and procedures shall be
23 formulated to provide a coherent, long-range state agricultural

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 1 land use policy, that will enable and promote the expansion of
 2 agriculture's role in Hawaii's economic future and the
 3 conservation of agricultural lands as an economic, physical, and
 4 sociocultural resource for present and future generations of
 5 residents and visitors.
 6      The commission shall develop and recommend criteria and
 7 standards for review and adoption in the regular session of 2000.
 8 The commission shall identify and adopt maps designating the
 9 important agricultural lands to the State on or before June 30,
10 2001; provided that the commission shall use the criteria,
11 standards, and process for identifying important agricultural
12 lands adopted by the 2000 regular session of the legislature, and
13 that the adoption of maps designating important agricultural
14 lands shall be conducted through public notice and hearings in
15 accordance with chapter 92, Hawaii Revised Statutes.
16      (c)  The commission may undertake any necessary studies to
17 carry out its functions and may enter into contracts with
18 qualified persons or any government agency on terms as it may
19 deem appropriate.  The commission shall receive administrative
20 support from the office of planning.  All state and county
21 agencies shall render services upon request of the commission
22 through its chairperson to facilitate the purposes of this
23 section.

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 1      (d)  The commission shall invite the participation of the
 2 general public, particularly persons having an interest in
 3 agricultural lands and agricultural development in the State.
 4 Public information meetings and hearings shall be held as
 5 frequently as deemed necessary and feasible; provided that at
 6 least one hearing, which shall be conducted subject to chapter
 7 92, Hawaii Revised Statutes, shall be held in each county prior
 8 to the submission of reports required under this section.
 9      (e)  In the formulation of its recommendations, the
10 commission shall take into consideration existing data and
11 findings of previous classification studies, including the State
12 of Hawaii land evaluation and site assessment commission reports
13 and maps, the agricultural lands of importance to the State of
14 Hawaii system, and the land study bureau's detailed land
15 classification system.
16      (f)  The proposed criteria and standards for the designation
17 and reclassification of important agricultural lands shall
18 include quantitative and qualitative factors that consider, at a
19 minimum:
20      (1)  Land evaluation.  The capability of land for
21           sustainable production based on (A) the overall quality
22           of the physical properties of the land, to include but
23           not be limited to soil characteristics, moisture

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 1           supply, temperature, humidity, sunlight, air drainage,
 2           elevation, slope, etc.; and (B) the availability of
 3           water for irrigation or the potential for irrigation
 4           system development; and
 5      (2)  Land use assessment.  The compatibility and
 6           desirability of agricultural use with respect to
 7           long-range land use policy objectives, including:
 8           importance to state agricultural development objectives
 9           and programs; compatibility with county long-range land
10           use policies as expressed in county general and
11           community or development plans; existing and planned
12           development capacity to accommodate non-agricultural
13           needs; existing and planned infrastructure and service
14           capacity; short- and long-term existing and emerging
15           local and export markets for agricultural commodities
16           and products, including value-added agricultural
17           opportunities; and compatibility with surrounding uses;
18      The commission may further define and add other factors to
19 this subsection with at least a two-thirds majority approval of
20 the commission.  The commission shall exercise its discretion in
21 determining the need for and developing a rating system by which
22 these factors are applied; provided that, at a minimum, the
23 commission shall develop a clear and replicable methodology for

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 1 applying criteria in the designation of important agricultural
 2 lands, and collaborative planning procedures for the designation,
 3 review, and revision of important agricultural lands.
 4      The commission shall also identify and develop additional
 5 criteria and standards necessary to provide uniform, statewide
 6 policy guidance for the planning and regulation of the use and
 7 management of important agricultural lands, and provide
 8 recommendations for the adoption of important agricultural land
 9 use standards by statute or rule-making.
10      (g)  Prior to the convening of the regular session of 2000,
11 the commission shall submit a report of its findings and
12 recommendations to the legislature.  The report shall include,
13 but not be limited to recommended attributes, criteria,
14 standards, and methodology for a system to identify important
15 agricultural lands to the State, including preliminary maps
16 demonstrating the application of the proposed criteria and
17 standards.
18      (h)  Prior to the convening of the regular session of 2001,
19 the commission shall submit to the legislature a report of its
20 findings and recommendations.  The report shall include, but not
21 be limited to:
22      (1)  The status of the commission's important agricultural
23           lands designation process, including preliminary maps

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 1           and other supporting documents identifying potential
 2           lands for designation as important agricultural lands
 3           by the commission on or before June 30, 2001; and
 4      (2)  Legislative proposals to amend existing statutory
 5           provisions to establish the objectives, criteria, and
 6           standards for a state agricultural land use policy
 7           adopted pursuant to this section.
 8      Upon the legislature's adjournment sine die of the regular
 9 session of 2001, the commission shall cease to exist.
10                              PART V.
11      SECTION 21.  The Hawaii Revised Statutes is amended by
12 substituting the phrase "state planning commission", or like
13 terms, wherever the phrase "land use commission", "state land use
14 commission", or like terms appear, as the context requires.
15      SECTION 22.  This Act shall not affect rights and duties
16 that matured, penalties that were incurred, and proceedings that
17 were begun, prior to its effective date.
18      SECTION 23.  Statutory material to be repealed is bracketed.
19 New statutory material is underscored.
20      SECTION 24.  This Act shall take effect upon its approval.
22                           INTRODUCED BY:  _______________________

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