Authorizes and directs the agribusiness development corporation
to establish agricultural subdivisions; allows owners of
agricultural lands to subdivide land into parcels not less than
20 acres in size; provided that the subdivided lots are used for
intensive agricultural purposes; appropriates funds. (SD1)

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                S.D. 1
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that hundreds of acres of
 2 former sugarcane land throughout the State have lain idle due to
 3 the closure of many of Hawaii's plantations.  Meanwhile, hundreds
 4 of displaced sugar workers are searching for jobs and
 5 opportunities to enter into agricultural endeavors.  Others who
 6 are already farming or ranching successfully elsewhere are
 7 interested in leasing land to expand their operations.
 8      The coordinating entity, the agribusiness development
 9 corporation, is empowered statutorily to facilitate and promote
10 agriculture in the State through the reuse of former plantation
11 lands, water delivery systems, roadways, and other necessary
12 infrastructure.
13      The purpose of this Act is to authorize and direct the
14 agribusiness development corporation to establish agricultural
15 subdivisions in the most expeditious and cost-effective manner
16 possible and to allow persons owning property within an
17 agricultural district to subdivide the property into leasehold
18 lots to be used for intensive agricultural purposes.
19      SECTION 2.  Section 163D-17, Hawaii Revised Statutes, is

Page 2                                                     949
                                     H.B. NO.           H.D. 2
                                                        S.D. 1

 1 amended as follows:
 2      (1)  By amending subsection (b) to read:
 3      "(b)  The corporation shall hold the fund in an account or
 4 accounts separate from other funds.  The corporation shall invest
 5 and reinvest the fund and the income thereof to:
 6      (1)  Purchase qualified securities issued by enterprises for
 7           the purpose of raising seed capital; provided that the
 8           investment shall comply with the requirements of this
 9           chapter;
10      (2)  Make grants, loans, and provide other monetary forms of
11           assistance necessary to carry out the purposes of this
12           chapter; [and]
13      (3)  Develop agricultural subdivisions; and
14     [(3)] (4)  Purchase securities as may be lawful investments
15           for fiduciaries in the State.
16      All appropriations, grants, contractual reimbursements, and
17 other funds not designated for this purpose may be used to pay
18 for the proper general expenses and to carry out the purposes of
19 the corporation."
20      (2)  By amending subsection (f) to read:
21      "(f)  No investment, loan, grant, or use of corporate funds
22 for the purposes of this chapter shall be subject to chapter 42F,
23 103, or 103D."

Page 3                                                     949
                                     H.B. NO.           H.D. 2
                                                        S.D. 1

 1      SECTION 3. Chapter 205, Hawaii Revised Statutes, is amended
 2 by adding two new sections to be appropriately designated and to
 3 read as follows:
 4      "205-     Intensive agricultural subdivisions.  (a)  Any
 5 person owning property within an agricultural district may
 6 subdivide the property into leasehold lots to be used for
 7 intensive agricultural purposes.  The minimum lot size in an
 8 intensive agricultural subdivision shall not be less than twenty
 9 acres.
10      (b)  The lots in an intensive agricultural subdivision shall
11 be used solely for the production of plant and animal life for
12 food, fiber, and raw materials, including general farming, fruit
13 growing, flower growing, aquaculture, growing of timber and
14 forest products, apiary, grazing, dairying, and the production of
15 any form of livestock or poultry.  Special permits for other uses
16 shall not be allowed.
17      (c)  Intensive agricultural subdivisions shall be exempt
18 from all county subdivision ordinances; provided that any
19 buildings and uses described in section 205-4.5 shall comply with
20 all applicable county building ordinances.
21      205-     Intensive agricultural subdivision and file plan;
22 county approval.  (a)  A landowner or an authorized
23 representative of the landowner shall submit a file plan of the

Page 4                                                     949
                                     H.B. NO.           H.D. 2
                                                        S.D. 1

 1 proposed intensive agricultural subdivision which shall include:
 2      (1)  The overall tax map key or tax map keys if the lots in
 3           the subdivision are included in more than one tax map
 4           key:
 5      (2)  The actual lot description or plantation field
 6           description within the tax map key; and
 7      (3)  Any construction plans for accessory facilities and
 8           utilities that are to be constructed.
 9 The plan shall be submitted to the legislative body of the county
10 in which the proposed subdivision is located.
11      (b)  The legislative body shall approve or disapprove the
12 intensive agricultural subdivision within forty-five days after
13 the file plan has been submitted.  If after the forty-fifth day,
14 the intensive agricultural subdivision file plan is not
15 disapproved, it shall be deemed approved by the legislative body.
16      (c)  The approved file plan shall be recorded or registered
17 as required by law."
18      SECTION 4.  The agribusiness development corporation shall
19 consider the following actions for the purpose of establishing
20 agricultural subdivisions:
21      (1)  Seek long-term leases from the department of land and
22           natural resources and other landowners to allow
23           qualified tenants to hold long-term subleases under the

Page 5                                                     949
                                     H.B. NO.           H.D. 2
                                                        S.D. 1

 1           agribusiness development corporation; and
 2      (2)  Cooperate with and receive assistance from financial
 3           institutions for the following:
 4           (A)  Collection or payment of maintenance fees;
 5           (B)  Collection or payment of lease rents;
 6           (C)  Collection or payment of assessments for common
 7                infrastructure improvements;
 8           (D)  Collection or payment of property taxes;
 9           (E)  Collection or payment of insurance fees;
10           (F)  Collection or payment of agribusiness development
11                corporation management fees; and
12           (G)  Assisting tenants in seeking financial assistance
13                from private and public lenders and applicable
14                federal loan guarantee programs.
15      SECTION 5.  There is appropriated out of the general
16 revenues of the State of Hawaii the sum of $1 or so much thereof
17 as may be necessary for fiscal year 1999-2000 to be deposited
18 into the Hawaii agricultural development special fund for the
19 establishment of agricultural subdivisions.
20      SECTION 6.  The sum appropriated shall be expended by the
21 agribusiness development corporation for the purposes of this
22 Act.
23      SECTION 7.  Statutory material to be repealed is bracketed.

Page 6                                                     949
                                     H.B. NO.           H.D. 2
                                                        S.D. 1

 1 New statutory material is underscored.
 2      SECTION 8.  This Act shall take effect on July 1, 1999.