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SB2334
THE SENATE
S.B. NO.
2334
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to agriculture
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1.
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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
agricultural land conservation
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Definitions.
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As used in this chapter:
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"Agricultural
land" means land that is intensively used and managed for the production
of food and fiber.
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"Agricultural
land" includes cropland; hay land; pastures, including native pastures and
rangeland; orchards; vineyards; areas that support wetland crops; other lands
used to support the production of livestock; and small tree farms.
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"Consumer
Price Index-U" means the index published by the Bureau of Labor Statistics
of the United States Department of Labor that measures the average change in
prices of goods and services purchased by all urban consumers, United States
city average, all items, 1982-84 = 100.
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"Department"
means the department of agriculture and biosecurity.
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"Fund"
means the agricultural land conversion fee fund.
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"Soil
and water conservation district" means a governmental subdivision of the State,
and a public body corporate and politic, organized under chapter 180.
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"Solar
energy facility" means a facility described in section 205-2(d)(6) that
meets the permissible use requirements described in section 205-4.5(a)(20) and
(21) on lands classified as agricultural.
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"Wind
farm" means a wind machine or wind farm described in section 205-2(d)(8)
that meets the permissible use requirements described in section 205-4.5(a)(15)
on lands classified as agricultural.
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Agricultural land conversion fee
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(a)
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Beginning January 1, 2027, an agricultural land conversion fee shall be
paid by the buyer or lessee in a transaction for any land classified as
agricultural under chapter 205 that is primarily utilized for purposes set
forth in sections 205-2(d)(1) through (3) and 205-4.5(a)(1) through (4) and
that is intended to be converted by the buyer or lessee from agricultural land
for the following purposes:
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(1)
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To develop:
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(A)
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A solar energy facility;
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(B)
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A wind farm;
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(C)
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An industrial park pursuant to chapter 171;
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(D)
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A commercial area; or
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(E)
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A single-family or multiple-family dwelling
that is not a farm dwelling as defined under section 205-4.5(a)(4); or
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(2)
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Any other use that prevents land classified as
agricultural from being used specifically as agricultural land.
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(b)
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The
agricultural land
conversion fee
shall apply to any agricultural land that is leased or
purchased in the State.
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The fee shall be
remitted to the department within thirty days of the purchase or lease of the
agricultural land by the buyer or lessee.
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(c)
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The amount of the agricultural land
conversion fee shall be determined as follows:
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(1)
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$3,600 per acre for the removal of ten or
fewer acres of agricultural land;
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(2)
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$3,200 per acre for the removal of more than
ten acres but fewer than thirty acres of agricultural land; and
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(3)
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$2,800 per acre for the removal of thirty or
more acres of agricultural land.
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(d)
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The department shall collect the agricultural
land conversion fee and deposit all revenues from the fee into the fund.
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(e)
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The following shall be exempt from the
agricultural land conversion fee:
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(1)
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Agricultural land that is removed from agricultural
production for the personal use of a farmer or landowner; or
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(2)
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Any conversion of agricultural land:
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(A)
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In which the primary function supports
agricultural infrastructure, such as livestock operations or grain elevators;
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(B)
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Performed by an agency of the State;
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(C)
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Undertaken for the creation of high-voltage electric
transmission systems; or
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(D)
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Whose primary purpose is the establishment of
conservation practices.
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Agricultural land conversion fee
fund.
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(a)
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There is established within the state
treasury the agricultural land conversion fee fund, into which shall be
deposited all revenues generated by agricultural land conversion fees.
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(b)
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Moneys in the fund shall be collected and
expended by the department only for the following purposes:
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(1)
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To support the operations and programs of the soil
and water conservation districts;
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(2)
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For administrative costs incurred by the
department in administering this chapter; and
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(3)
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For any other purpose expressly provided by
this chapter or by rules adopted by the department to implement this chapter.
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Allocation and expenditure of moneys in the
fund
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(a)
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The department shall annually ensure that, subject
to the moneys in the fund and before expending moneys for any other purpose:
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(1)
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At least $
shall be used by the department for the healthy soils program, annually adjusted
by the percentage change in the Consumer Price Index-U of the preceding year;
and
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(2)
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$
shall be retained by the department for administrative and other costs
associated with collection of the agricultural land conversion fees and related
activities.
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(b)
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After the moneys in the fund have been
allocated pursuant to subsection (a), any remaining moneys may be expended by
the department for other purposes allowed by this chapter.
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Commercial agricultural production on state
lands
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All state lands used in the
commercial production of agricultural commodities, including any lands under
lease agreements with the department, shall use an established metric to
advance the adoption of conservation practices, including but not limited to:
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(1)
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Cover crops;
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(2)
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No till;
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(3)
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Strip till;
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(4)
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Nutrient management plans;
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(5)
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Saturated buffers;
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(6)
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Bioreactor terraces;
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(7)
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Contours;
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(8)
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Grass filter strips;
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(9)
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Riparian buffers;
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(10)
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Grassed waterways;
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(11)
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Pollinator plantings;
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(12)
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Windbreaks;
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(13)
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Constructed wetlands;
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(14)
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Tile drainage water that is collected and
sampled for water quality;
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(15)
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Conservation plans that reduce sheet and rill
erosion; and
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(16)
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Nitrogen rate studies.
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Rules
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The department shall adopt rules pursuant to chapter 91 to implement
this chapter."
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SECTION 2.
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This Act shall take effect upon its approval.
INTRODUCED BY:
_____________________________
Report Title:
Agriculture
Land Conservation; Agricultural Land Conversion Fee; Agricultural Land
Conversion Fee Fund; Healthy Soils Program; State Lands; Commercial
Agricultural Production; Conservation Practices
Description:
Beginning
1/1/2027, requires the payment of an Agricultural Land Conversion Fee by the
buyer or lessee in a transaction for any agricultural land that will be converted
from agricultural production for certain purposes.
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Establishes the Agricultural Land Conversion
Fee Fund to, among other things, support the Health Soils Program.
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Requires all state lands used in the
commercial production of agricultural commodities, including any lands under
lease agreements with the Department of Agriculture and Biosecurity, to use an
established metric to advance the adoption of conservation practices.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.