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SB2595
THE SENATE
S.B. NO.
2595
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:
����
SECTION
1.
�
Section 163D-4, Hawaii Revised Statutes, is
amended by amending subsection (a) to read as follows:
����
"(a)
�
Except as otherwise limited by this chapter,
the corporation may:
����
(1)
�
Sue and be sued;
����
(2)
�
Have a seal and alter the same at its
pleasure;
����
(3)
�
Make and alter bylaws for its
organization and internal management;
����
(4)
�
Adopt rules under chapter 91 necessary
to effectuate this chapter in connection with its projects, operations, and
properties;
����
(5)
�
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)
�
(A)
�
Acquire [
or
]
by grant or
purchase,
contract to acquire by grant or purchase
, lease as a lessee, license
as a licensee, or rent as a tenant
any real, personal, or mixed property or
any interest therein for its immediate or future use for the purposes of this
chapter; [
own,
]
���������
(B)
�
Own,
hold, improve, and
rehabilitate any real, personal, or mixed property acquired[
,
]
;
and [
sell, assign,
]
���������
(C)
�
Assign,
exchange, transfer,
convey, [
lease,
]
let, license as a licensor, rent as a landlord,
or
otherwise dispose of, or encumber [
the same;
]
any real property
acquired; provided that payments to the corporation under a lease, license, or
rental agreement shall be at amounts not less than the market rate; provided
further that if the products of the lessee, licensee, or tenant are fresh local
agricultural products under section 302A-405.6 and purchased by the department
of education or if the lessee, licensee, or tenant is a partner member of the
food and product innovation network under section 163D-20, the payments to the
corporation may be less than the market rate.
�
The market rate shall be determined by:
��������������
(i)
�
An employee of the board qualified
to appraise the real, personal, or mixed property; or
�������������
(ii)
�
An appraisal requested by the
prospective lessee, licensee, or tenant; provided that the appraisal shall be conducted
by one or more disinterested qualified appraisers whose services shall be
contracted for by the board.
�
The cost of
the appraisal and any further appraisals, if necessary, shall be borne by the prospective
lessee, licensee, or tenant;
����
(7)
�
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;
����
(8)
�
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:
���������
(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;
�������������
(ii)
�
Diminish or abridge the traditional and
customary rights of ahupua
`
a tenants who inhabited the
Hawaiian Islands prior to 1778 under sections 1-1 and 7-1; and
������������
(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
���������
(B)
�
All usage of water shall be in
accordance with chapter 174C and other applicable laws in the State;
����
(9)
�
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;
���
(10)
�
Coordinate its activities with any
federal or state farm credit programs;
���
(11)
�
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;
���
(12)
�
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;
���
(13)
�
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;
���
(14)
�
Accept gifts or grants in any form from
any public agency or any other source; and
���
(15)
�
Do all things necessary or proper to
carry out the purposes of this chapter."
����
SECTION 2.
�
This Act does not affect rights and duties that matured, penalties that
were incurred, and proceedings that were begun before its effective date.
����
SECTION 3.
�
Statutory material to be repealed is bracketed and stricken.
�
New statutory material is underscored.
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SECTION 4.
�
This Act shall take effect upon its approval.
INTRODUCED BY:
_____________________________
Report Title:
DBEDT;
Agribusiness Development Corporation; Lease; License; Rental; DOE; Market Rate
Description:
Requires
the Agribusiness Development Corporation of the Department of Business,
Economic Development, and Tourism to lease, license, or rent its properties at
market rates or higher.
�
Exempts
lessees,
licensees, and tenants who grow, raise, and harvest fresh local agricultural
products for the Department of Education.
�
Exempts
partner members
of the Food and Product Innovation Network.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.