RELATING TO FOREIGN OWNERSHIP OF AGRICULTURAL LAND.

HB192

HOUSE OF REPRESENTATIVES

H.B. NO.

192

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to foreign ownership of agricultural land
.

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

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SECTION
1.
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The legislature finds that Hawaii's agricultural land is a vital resource
that must be preserved for the benefit of local farmers, communities, and food
security.
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In 2022, Hawaii had the
second-highest percentage of foreign‑held agricultural land in the United
States, with 12.8 per cent of its agricultural land under foreign
ownership.
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Such a high level of foreign
ownership raises concerns about land access for local farmers and the economic
resilience of Hawaii's food systems.

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The legislature further finds that the 2023
Consolidated Appropriations Act directs the United States Department of
Agriculture to report to Congress on "foreign investments in agricultural
land in the United States, including the impact foreign ownership has on family
farms, rural communities, and the domestic food supply."
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This federal directive underscores the need
for states like Hawaii to examine and address the implications of foreign-held
agricultural land.

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The purpose of this Act is to ensure that
Hawaii's agricultural land remains available and accessible to local farmers
and agricultural enterprises by limiting foreign ownership of agricultural land
and establishing transparency requirements.

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SECTION
2.
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The Hawaii Revised Statutes is
amended by adding a new chapter to be appropriately designated and to read as
follows:

"
Chapter

limitations on the PURCHASE OF agricultural
lands BY FOREIGN entities

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� -1
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Definitions.
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As used in this chapter, unless the context
otherwise requires:

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"Agricultural
land" means any real property within the agricultural district established
pursuant to section 205-2(d).

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"Foreign
entity" means a corporation, business association, partnership, trust,
society, or any other entity or group that is not incorporated or organized to
do business in the United States, including foreign governments and any agency
or subdivision of foreign governments.

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"Real
property" means lands, structures, and interest therein and natural
resources, including water, minerals, and all things connected with land,
including lands under water and riparian rights, space rights, air rights, and
any and all other things and rights usually included with the term.

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-2
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Restrictions on foreign ownership of
agricultural lands.
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(a)
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Except as provided in this chapter, no
foreign entity shall own, lease, or hold a controlling interest in more than
acres of agricultural land within the State
.

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(b)
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No agricultural land within the State shall be sold, transferred, or
leased for a period exceeding five years to a foreign entity.

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(c)
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This section shall not apply to:

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(1)
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Inheritance
or transfer to family members as part of an estate;

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(2)
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Land
used for non-agricultural purposes, with approval from the department of
agriculture;

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(3)
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Leaseholds
of five years or less for non-controlling interests in agricultural land; or

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(4)
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Agricultural
lands owned, leased, or in which a controlling interest is held by a foreign
entity before July 1, 2025.

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-3
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Disclosure and
transparency requirements.
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(a)
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All foreign entities with ownership or leasehold interest in
agricultural land within the State shall file an annual report to the
department of agricultural detailing:

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(1)
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Total
acreage and location of land owned or leased;

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(2)
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Types
of agricultural production or land use; and

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(3)
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Any
material changes in ownership or leasehold status.

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(b)
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The department of agriculture shall maintain an online public registry
of foreign-owned agricultural lands, including land ownership, acreage, and
type of use, within the State.

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-4
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Enforcement and
penalties.
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(a)
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Any foreign entity in violation of this chapter shall be subject to a
fine not exceeding
$ per acre owned in
excess of the allowable acreage pursuant to section -2(a).

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(b)
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Foreign entities failing to comply with reporting requirements under
section -3 shall be subject to a fine of
$ for each day the
report is overdue or incomplete.

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(c)
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Any land transaction made in violation of this chapter shall be deemed
void, and ownership of the land subject to the transaction and any funds used in
the land transaction shall revert to the transferor or department of the
attorney general, as applicable."

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SECTION
3.
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There is appropriated out of the
general revenues of the State of Hawaii the sum of $
or so much thereof as may be necessary for fiscal year 2025-2026 and the same
sum or so much thereof as may be necessary for fiscal year 2026-2027 for the
department of agriculture to maintain a public registry of foreign-owned
agricultural lands.

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The sums

appropriated shall be expended by the
department of agriculture for the purposes of this Act.

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SECTION 4.
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This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

Agricultural
Land; Foreign Entities; Lease Limitations; Appropriation

Description:

Prohibits
foreign entities from owning, leasing, or holding a controlling interest in
more than an unspecified number of acres of agricultural land.
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Limits the lease term for agricultural land
by foreign entities.
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Requires foreign
entities that own or lease interest in agricultural lands to file an annual
report with the Department of Agriculture.
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Appropriates funds.

The summary description
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not legislation or evidence of legislative intent.