RELATING TO IMPORTANT AGRICULTURAL LANDS.

SB1332

THE SENATE

S.B. NO.

1332

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO IMPORTANT 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 in 2008, the legislature passed incentives intended
to promote agricultural viability, sustained growth of the agricultural
industry, and the long-term use and protection of lands designated as important
agricultural lands.

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Act 233, Session Laws of Hawaii 2008, included
a provision for landowners to develop, construct, and maintain farm dwellings and
employee housing for farmers, employees, and their immediate family members on lands
designated as important agricultural lands, provided that occupants of these dwellings
are actively engaged in farming.
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Although
this provision was intended as an incentive for the designation and agricultural
use of important agricultural lands, it is unclear whether this provision, as codified
in section 205-45.5, Hawaii Revised Statutes, also imposes additional restrictions
on farm dwellings and employee housing on important agricultural lands.

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The legislature recognizes that
the lack of affordable housing for farmers and farm employees is an impediment to
increasing food and non-food agricultural production in Hawaii.
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There is still a need to develop housing for farmers
and farm employees on lands designated as important agricultural lands that both
reduces the cost and time required to supply such housing and ensures that the housing
is used in conjunction with, and located on, an active farm and is occupied by bona
fide farmers or farm employees.

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The purposes of this Act are to:

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(1)
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Establish
an important agricultural lands incentive to facilitate the development of farm
cluster housing for farmers, farm employees, and their immediate family members;

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(2)
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Include
farm cluster housing under a priority permit processing procedure for facilities
on lands designated as important agricultural lands; and

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(3)
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Repeal the existing requirements for farm dwellings
and employee housing on important agricultural lands to eliminate any restrictions
that may be stricter than what is allowed under the existing definition of a farm
dwelling.

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SECTION 2.
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Chapter 205, Hawaii Revised Statutes, is amended by adding to part III a
new section to be appropriately designated and to read as follows:

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"
�205-
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Important agricultural
lands incentive; farm cluster housing.
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(a)
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There is established an important agricultural
lands incentive to provide an alternative means to develop housing for farmers and
farm employees who actively and currently farm lands that are designated as important
agricultural lands.
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The incentive shall be
used to support development of farmer and farm employee housing that reduces costs
and time while ensuring that the housing developed does not contribute to the loss
of agricultural land to non‑agricultural residential uses or residential sprawl.

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(b)
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Notwithstanding section 205-51(b) and any other law to the contrary, a landowner
or lessee of lands that are designated as important agricultural lands may apply
to a county for a permit, in a form to be determined by the county, that allows
the landowner or lessee to develop, construct, and maintain farm cluster housing
on the lands for rent to farmers and farm employees who actively and currently farm
on important agricultural lands and their immediate family members.

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(c)
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Each county shall enact ordinances to allow farm cluster housing on important
agricultural lands.
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The ordinances shall
provide for:

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(1)
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Conformance
with the conditions in subsection (d);

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(2)
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Exemption
from subdivision of the land and other county subdivision ordinances;

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(3)
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Priority
review and processing pursuant to section 205-46.5;

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(4)
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The
development of more units per lot than allowed by the underlying county zoning;
and

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(5)
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The
submission to the county of the landowner or lessee
'
s agricultural plan
or agricultural business plan supporting the development of farm cluster housing
and providing evidence of a real property tax agricultural dedication granted by
the county.
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The agricultural plan and agricultural
tax dedication verification shall be submitted to the appropriate county agency
for review and comment and may be submitted by the county to the department of agriculture
for review and comment, before any county action on the application.

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(d)
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Farm cluster housing shall be subject to the following conditions:

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(1)
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Farm
cluster housing shall be allowed only on lots of record that are at least ten acres;

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(2)
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All
farm cluster housing units shall be leased or rented to a farmer or farm employee
who is farming the important agricultural lands upon which the farm cluster housing
is situated.
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This restriction shall be stated
in any applicable rental documents;

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(3)
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The
total land area upon which the farm cluster housing units and all appurtenances
are situated shall occupy an area that is the lesser of:

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(A)
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A contiguous block or area no more than five per cent of the lot
of record; or

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(B)
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A contiguous block or area not to exceed ten acres;

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(4)
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The
farm cluster housing units shall meet all applicable building code requirements
and infrastructure requirements and standards necessary to ensure safe and healthful
occupancy;

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(5)
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The
farm cluster housing units shall not be used for

short-term vacation rentals;

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(6)
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The
landowner or master lessee shall be responsible for ensuring compliance with the
occupancy requirement set forth in subsection (d)(1) and the restriction on use
set forth in subsection (d)(5); and

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(7)
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If
farm cluster housing units are vacated as a result of the cessation of any agricultural
operations on the important agricultural lands, the landowner or master lessee may
rent the farm cluster housing units under the same restrictions imposed by this
section to a farmer or farm employee of a bona fide farming operation, as defined
in section 165-2, on other agricultural lands, whether or not those lands have been
designated as important agricultural lands.

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(e)
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The officer or agency charged with the administration of county zoning laws
within each county shall enforce the building and use restrictions in this section
and impose penalties for violations of any provision of this section or of any related
county permit.

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(f)
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F
arm dwellings and employee housing
units on lands designated as important agricultural lands that are not processed
as farm cluster housing pursuant to this section shall be subject to all applicable
state laws, county ordinances, and rules
.

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(g)
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As used in this section, "farm cluster housing" means an agricultural
housing development that concentrates farm dwellings and farm employee housing units
and shared infrastructure in a compact area within the larger lot and minimizes
the land area occupied by the housing development.
"

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SECTION 3.
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Section 205-46.5, Hawaii Revised Statutes, is amended by amending its title
and subsection (a) to read as follows:

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"[
[
]
�205-46.5
[
]
]
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Agricultural processing facilities;
farm
cluster housing;
permits; priority.
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(a)
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Any agency subject to this chapter
or title 13 that issues permits
for:

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(1)
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Agricultural processing facilities that process
crops or livestock from an agribusiness; or

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(2)
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Farm cluster housing developed pursuant to section
205-
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;

shall
establish and implement a procedure for the priority
processing of
those
permit applications and renewals, at no additional cost
to the applicant[
, for agricultural processing facilities that process crops
or livestock from an agribusiness
]; provided that the majority of the lands
held, owned, or used by the agribusiness
or farm cluster housing applicant

shall be land designated as important agricultural lands pursuant to this part,
excluding lands held, owned, or used by the agribusiness
or applicant
in
a conservation district.

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Any priority permit processing procedure established
pursuant to this section shall not provide or imply that any permit application
filed under the priority processing procedure shall be automatically approved.
"

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SECTION 4.
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Section 205-45.5, Hawaii Revised Statutes, is
repealed.

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["
[
�205-45.5
]
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Important agricultural land; farm dwellings
and employee housing.
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A landowner whose
agricultural lands are designated as important agricultural lands may develop, construct,
and maintain farm dwellings and employee housing for farmers, employees, and their
immediate family members on these lands; provided that:

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(1)
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The
farm dwellings and employee housing units shall be used exclusively by farmers and
their immediate family members who actively and currently farm on important agricultural
land upon which the dwelling is situated; provided further that the immediate family
members of a farmer may live in separate dwelling units situated on the same designated
land;

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(2)
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Employee
housing units shall be used exclusively by employees and their immediate family
members who actively and currently work on important agricultural land upon which
the housing unit is situated; provided further that the immediate family members
of the employee shall not live in separate housing units and shall live with the
employee;

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(3)
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The
total land area upon which the farm dwellings and employee housing units and all
appurtenances are situated shall not occupy more than five per cent of the total
important agricultural land area controlled by the farmer or the employee's employer
or fifty acres, whichever is less;

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(4)
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The
farm dwellings and employee housing units shall meet all applicable building code
requirements;

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(5)
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Notwithstanding
section 205-4.5(a)(12), the landowner shall not plan or develop a residential subdivision
on the important agricultural land;

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(6)
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Consideration
may be given to the cluster development of farm dwellings and employee housing units
to maximize the land area available for agricultural production; and

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(7)
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The
plans for farm dwellings and employee housing units shall be supported by agricultural
plans that are approved by the department of agriculture.
"]

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SECTION 5.
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This Act does not affect rights and duties that matured, penalties that were
incurred, and permit proceedings begun before its effective date under the use and
district standards for the state agricultural land use district and underlying county
zoning.

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SECTION 6.
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Statutory material to be repealed is bracketed and stricken.
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New statutory material is underscored.

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SECTION 7.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

BY REQUEST

Report Title:

Important Agricultural Lands; Important Agricultural Lands
Incentive; Farm Cluster Housing; Priority Permit Processing; Counties; County Ordinances

Description:

Repeals the provision authorizing farm
dwellings and farm employee housing on important agricultural lands, amends the
provision for priority permit processing to include farm cluster housing, and adopts
a new provision establishing farm cluster housing to incentivize the designation
of lands as important agricultural lands pursuant to chapter 205, HRS.

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