RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION.

SB2169

THE SENATE

S.B. NO.

2169

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

Relating
to the agribusiness development corporation
.

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

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SECTION 1.
�
The legislature finds that the State's long‑term
food security and agricultural resilience depend upon the availability of land
and water resources that can support diversified, sustainable agricultural
production.
�
When the agribusiness development
corporation (corporation) was established in 1994 by Act 264, Session Laws of
Hawaii 1994, and codified as chapter 163D, Hawaii Revised Statutes, the
legislature envisioned that the State's transition from plantation agriculture
would release approximately seventy‑five thousand acres of agricultural
lands and fifty million gallons of irrigation water per day for reuse by
diversified agriculture.

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However,
three decades later, the full potential of these resources has not been
realized.
�
The consolidation of
agricultural parcels, rehabilitation of irrigation systems, and establishment
of modern agricultural infrastructure remain incomplete due to complex land
ownership patterns, dormant assets, and inadequate coordination among state agencies.
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The lack of a clear mechanism for the State
to assemble strategically located agricultural lands and critical
infrastructure has impeded Hawaii's ability to achieve food self-sufficiency
and reduce dependence on imported foods.

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The
legislature further finds that the corporation was created to facilitate the
conversion of former plantation lands and water systems to diversified
agricultural use, coordinate the development of agricultural infrastructure,
and assist local producers in overcoming structural barriers to agricultural
growth.
�
Yet, despite its broad authority
to acquire and manage lands, the corporation presently lacks explicit statutory
authority to acquire lands or easements by condemnation for public agricultural
purposes, even in situations where voluntary acquisition is impracticable or
contrary to the public interest.

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The
legislature recognizes that the power of eminent domain is an extraordinary
authority that must be exercised only for a demonstrable public use, subject to
the constitutional guarantees of just compensation and due process, and with
full regard for the State's obligations under article XI, section 7, of the
Hawaii State Constitution to protect, control, and regulate the use of the
State's water resources for the benefit of its people.
�
The legislature further acknowledges that
lands and water systems are integral to Native Hawaiian customary and
traditional rights, and to the rights of beneficiaries under the Hawaiian Homes
Commission Act of 1920.

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The
legislative intent of the authority established by this Act is not to promote
private commercial gain, nor to displace existing public uses of land without
compelling justification and legislative review.
�
Rather, the legislature seeks to restore
coherence and capacity to the State's agricultural infrastructure policy,
enabling the public sector to acquire and manage essential agricultural
resources for the long-term benefit of the State's people, environment, and
economy.

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Accordingly,
the purpose of this Act is to authorize the agribusiness development corporation
to acquire real property or any interest therein by condemnation, pursuant to
chapter 101, Hawaii Revised Statutes, solely for legitimate public agricultural
uses, such as the establishment or preservation of irrigation systems,
reservoirs, processing and distribution facilities, and other infrastructure
that directly supports local agricultural producers and food-security
initiatives.

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SECTION

2
.
�
Section 163D-4,
Hawaii Revised Statutes, is amended by amending subsection (a) to read as
follows:

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"(a)
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Except as otherwise limited by this chapter,
the corporation may:

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(1)
�
Sue and be sued;

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(2)
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Have a seal and alter the same at its
pleasure;

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(3)
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Make and alter bylaws for its
organization and internal management;

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(4)
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Adopt rules under chapter 91 necessary
to effectuate this chapter in connection with its projects, operations, and
properties;

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(5)
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Make and execute contracts and all
other instruments necessary or convenient for the exercise of its powers and
functions under this chapter;

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(6)
�
Acquire or contract to acquire by grant
or purchase any real, personal, or mixed property or any interest therein for
its immediate or future use for the purposes of this chapter; own, hold,
improve, and rehabilitate any real, personal, or mixed property acquired, and
sell, assign, exchange, transfer, convey, lease, or otherwise dispose of, or
encumber the same;

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(7)
�
Acquire by condemnation pursuant to
chapter 101 any real property, including fixtures and improvements, or any
interest in real property, for the purposes of this chapter; provided that the
corporation makes a determination that the property is necessary for the
corporation's immediate or future use.
�

Notwithstanding any other law to the contrary, any real property
acquired by condemnation shall not thereafter be transferred or taken for any
other public use without the consent of the corporation;

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[
(7)
]

(8)
�
By
itself, or in partnership with qualified persons, acquire, construct,
reconstruct, rehabilitate, improve, alter, or repair any infrastructure or
accessory facilities in connection with any project; own, hold, sell, assign,
transfer, convey, exchange, lease, or otherwise dispose of, or encumber any
project;

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[
(8)
]

(9)
�
In
cooperation with the department of agriculture and biosecurity, pursuant to
chapter 167, or otherwise through direct investment or coventure with a
professional investor or enterprise or any other person, or otherwise, to
acquire, construct, operate, and maintain water facilities for conveying,
distributing, and transmitting water for irrigation and agricultural uses at
rates or charges determined by the corporation; provided that:

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(A)
�
This chapter shall not be construed to
permit or allow the department of agriculture and biosecurity or [
any
]
agribusiness development corporation to:

��������������
(i)
�
Amend or modify rights or entitlements
to water as provided for by article XI, section 7, of the Constitution of the
State of Hawaii, or the Hawaiian Homes Commission Act, 1920, as amended, and
chapter 168;

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(ii)
�
Diminish or abridge the traditional and
customary rights of ahupua
ʻ
a tenants who
inhabited the Hawaiian Islands [
prior to
]
before
1778 under
sections 1-1 and 7-1; and

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(iii)
�
Impair, abridge, or terminate the legal
rights or interests to water and its uses, whether by lease, easement, or other
means, [
which
]
that
are possessed or held by organizations whose
primary purpose is to benefit people of Hawaiian ancestry; and

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(B)
�
All usage of water shall be in
accordance with chapter 174C and other applicable laws in the State;

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[
(9)
]

(10)

Receive,
examine, and determine the acceptability of
�

applications of qualified persons for allowances or grants for the
development of new crops and agricultural products, the expansion of
established agricultural enterprises, and the altering of existing agricultural
enterprises;

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[
(10)
]

(11)

Coordinate
its activities with any federal or state farm credit programs;

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[
(11)
]

(12)

Grant
options to purchase any project or to renew any lease entered into by it in
connection with any of its projects, on the terms and conditions it deems
advisable;

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[
(12)
]

(13)

Provide
advisory, consultative, training, and educational services, technical
assistance, and advice to any person, partnership, or corporation, either
public or private, in order to carry out the purposes of this chapter, and
engage the services of consultants on a contractual basis for rendering
professional and technical assistance and advice;

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[
(13)
]

(14)

Procure
insurance against any loss in connection with its property and other assets and
operations in [
such
] amounts and from [
such
] insurers as it deems
desirable;

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[
(14)
]

(15)

Accept
gifts or grants in any form from any public agency or any other source; and

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[
(15)
]

(16)

Do
all things necessary or proper to carry out the purposes of this chapter."

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SECTION
3.
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Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

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SECTION
4.
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This Act shall take effect upon its
approval.

INTRODUCED BY:

_____________________________

Report Title:

ADC; Real
Property; Condemnation; Eminent Domain; Public Use

Description:

Authorizes
the Agribusiness Development Corporation to acquire by condemnation any real
property or interest in real property, under certain conditions.
�
Prohibits any real property acquired by the
Corporation by condemnation from subsequently being transferred or taken for
any other public use without the Corporation's consent.

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