RELATING TO AGRICULTURAL LANDS.

HB845

HOUSE OF REPRESENTATIVES

H.B. NO.

845

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO AGRICULTURAL LANDS
.

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 it is an objective
of the State to ensure that the agricultural industry continues to constitute a
dynamic and essential component of Hawaii's strategic, economic, and social
well-being.
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To achieve this objective,
the State must conserve, protect, and encourage the development and improvement
of available agricultural lands and facilities to produce food and other
agricultural products.

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Accordingly,
the purpose of this Act is to promote the conservation, protection, and
sustainable development of the State's agricultural resources by prohibiting
certain foreign parties from owning, purchasing, or acquiring ownership of or
an interest in agricultural lands.

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SECTION
2.
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The Hawaii Revised Statutes is
amended by adding a new chapter to title 11 to be appropriately designated and
to read as follows:

"
Chapter

PROHIBITION OF THE
acquisition of

AGRICULTURAL LANDS by
CERTAIN FOREIGN PARTIES

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

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"Foreign
government" means any government other than:

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(1)
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The United States; or

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(2)
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A state or political subdivision of the
United States.

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"Interest
in agricultural land" means all direct interest acquired, transferred, or
held in agricultural land, including, without limitation, a lease of
agricultural land:

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(1)
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For a term of one year or longer; or

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(2)
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That is renewable by option for terms
that, if exercised, would be for a term of one year or longer.

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"International
Traffic in Arms regulations" means regulations under title 22 Code of
Federal Regulations section 126.1.

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"Prohibited
foreign party" means:

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(1)
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A person subject to International
Traffic in Arms regulations;

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(2)
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A foreign government formed within a
country subject to International Traffic in Arms regulations;

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(3)
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A person other than an individual or
government that is created or organized under the laws of a foreign government
within a country subject to International Traffic in Arms regulations;

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(4)
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Any person other than an individual or
government:

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(A)
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That is created or organized under the
laws of any state; and

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(B)
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In which a significant interest or
substantial control is directly or indirectly held or is capable of being
exercised by:

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(i)
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A person described in paragraph (1) or
(3);

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(ii)
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A foreign government described in
paragraph (2); or

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(iii)
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Any combination of the persons or
foreign governments described in paragraphs (1), (2), and (3);

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(5)
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An entity of particular concern
designated by the United States Department of State; or

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(6)
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An agent, trustee, or other fiduciary
of a person or entity described in paragraphs (1) through (5).

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"Real
property" means lands, structures, and interests 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 within the term.

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"Residence"
means a person's principal dwelling place where the person intends to remain
permanently for an indefinite period of time.

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"Resident
alien" means a person who:

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(1)
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Is not a citizen of the United States;
and

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(2)
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Is a resident of a United States state,
territory, trusteeship, or protectorate.

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"Significant
interest" or "substantial control" means:

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(1)
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An interest of thirty-three per cent or
more held by a prohibited foreign party;

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(2)
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An interest of thirty-three per cent or
more held by more than one prohibited foreign party if the parties are acting
in concert with respect to the interest, even if no single prohibited foreign
party holds an interest of thirty-three per cent or more; or

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(3)
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An interest of fifty per cent or more,
in aggregate, held by prohibited foreign parties, regardless of whether the
prohibited foreign parties are acting in concert.

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Office of agricultural intelligence;
established.
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There is established within the department of
agriculture an office of agricultural intelligence, which shall:

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(1)
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Collect and analyze information
concerning the unlawful scale or possession of agricultural land by prohibited
foreign parties; and

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(2)
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Administer and enforce the provisions
of this chapter, including the reporting of violations to the attorney general
as provided in section -5.

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� -3
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Restrictions on ownership of agricultural
lands.
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(a)
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Notwithstanding any other law to the
contrary, a prohibited foreign party shall not acquire by grant, purchase,
devise, descent, or otherwise, any interest in agricultural land in the State,
except as provided in section -4.

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(b)
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A person shall not hold agricultural land as
an agent, trustee, or other fiduciary for a prohibited foreign party in
violation of this chapter.

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(c)
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A prohibited foreign party that acquires
agricultural land in violation of this chapter remains in violation as long as
the prohibited foreign party holds an interest in the agricultural land.

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� -4
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Exception; divestment.
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(a)
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Notwithstanding section ‑3, a prohibited foreign
party who is a resident alien of the United States may acquire and hold an
interest in agricultural land in the State during the continuance of that
prohibited foreign party's residence in the State.

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(b)
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If a prohibited foreign party who previously
held agricultural land pursuant to subsection (a) loses resident alien status,
the prohibited foreign party shall sell, transfer, or otherwise divest their
interest in agricultural land within two years of the date on which the
prohibited foreign party ceased to have resident alien status.

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(c)
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If a prohibited foreign party who is required
to sell, transfer, or divest an interest in agricultural land under subsection
(b) fails to do so, the attorney general shall initiate a civil action in the
circuit court in the county in which the agricultural land is located for the
forfeiture of the interest in agricultural land.

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(d)
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If the circuit court determines that an
interest in agricultural land is being held in violation of this chapter, the
circuit court shall order that the interest in agricultural land be sold as
provided in section -7.

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Enforcement.
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(a)
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If
the office of agricultural intelligence determines a prohibited foreign party
has acquired agricultural land in the State in violation of this chapter, the
office shall report the violation to the attorney general.

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(b)
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Upon receiving a report under subsection (a),
the attorney general may investigate to determine if there is a violation of
this chapter.
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In conducting the
investigation, the attorney general may issue subpoenas requiring the:

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(1)
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Appearance of witnesses;

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(2)
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Production of relevant records; and

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(3)
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Giving of relevant testimony.

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(c)
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Following the investigation, if the attorney
general concludes that a violation of this chapter has occurred, the attorney
general shall initiate a civil action in the circuit court in the county in
which the agricultural land is located for the forfeiture of the interest in
agricultural land.

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(d)
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If the circuit court determines that the
interest in agricultural land is being held in violation of this chapter, the
circuit court shall order that the interest in agricultural land be sold as
provided in section -7.

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Filings required.
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The attorney general shall promptly record
the following filings with the bureau of conveyances:

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(1)
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Upon commencement of an action under
this chapter, a notice of the pendency of the action; and

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(2)
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An order for the sale of agricultural
land under section -4(d) or -5(d).

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� -7
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Court-ordered sale of agricultural land.
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If the court orders the sale of an interest
in agricultural land under section -4(d) or -5(d),
the agricultural land shall be sold subject only to the rights and interests of
bona fide lienholders.
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Proceeds from the
sale, if any, shall be disbursed to lien holders, in the order of priority,
except for liens that, under the terms of the sale, are to remain with the
agricultural land.

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Penalty.
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A prohibited foreign party who violates this chapter shall be guilty of
a class C felony.

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� -9
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Affirmative defense.
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It shall be an affirmative defense to
prosecution under this chapter that a prohibited foreign party is a resident
alien.

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Title to land not invalid.
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Title to agricultural land is not invalid or
subject to divesture due to a violation of this chapter by any:

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(1)
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Former owner; or

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(2)
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Other person holding or owning a former
interest in the agricultural land.

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� -11
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No duty to inquire.
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No person who is not subject to this chapter
shall be required to determine or inquire whether another person is subject to
this chapter.

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� -12
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Rules.
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The department of agriculture may adopt rules pursuant to chapter 91
necessary to effectuate the purposes of this chapter."

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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 to
establish an office of agricultural intelligence, including the establishment
of full-time equivalent (
FTE) positions.

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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 does not affect rights and
duties that matured, penalties that were incurred, and proceedings that were
begun before its effective date.

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SECTION
5.
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This Act shall take effect on July 1,
2025.

INTRODUCED BY:

_____________________________

Report Title:

Real
Property; Agricultural Lands; HDOA; AG; Restrictions on Foreign Ownership;
Appropriations

Description:

Prohibits
certain foreign parties from owning, purchasing, or acquiring an interest in
agricultural lands.
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Establishes an
Office of Agricultural Intelligence within the Department of Agriculture to
investigate claims that land is unlawfully owned by a prohibited foreign
party.
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Requires the Attorney General to
undertake enforcement activities.
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Appropriates moneys.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.