RELATING TO COCONUT TREES.

SB2779

THE SENATE

S.B. NO.

2779

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to coconut trees
.

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

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SECTION 1.
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Chapter 149A,
Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated
and to read as follows:

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Part
.
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COCONUT TREES

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149A-A
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Legislative findings and purpose.
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The legislature finds that the coconut
tree, known in the Hawaiian language as niu, has historically served as a
critical source of food, potable water, medicine, and materials, and remains
essential to the health, culture, and lifestyle of the people of Hawaii.

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The
legislature further finds that the coconut rhinoceros beetle poses as serious
threat to coconut tree populations statewide and that certain pest management
practices may inadvertently reduce the availability of coconuts that are safe
for human consumption and limit the long-term regeneration of coconut trees.

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The
purpose of this part is to protect, preserve, and grow coconut trees in the
State by:

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(1)
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Recognizing
coconuts as a source of food and water;

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(2)
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Recognizing
coconut trees as a cultural treasure of Hawaii;

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(3)
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Allowing
the lawful production and banking of viable coconut seeds;

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(4)
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Requiring
transparency regarding pesticide use on coconut trees; and

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(5)
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Incentivizing
non-toxic and natural management of coconut rhinoceros beetles.

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149A-B
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Definitions.
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As used in this part:

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"Coconut tree" means a tree of
the species Cocos nucifera.

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"Consumable coconut tree" means a
coconut tree managed without the application of systemic or persistent
pesticides that would render the coconut water or meat unsafe for human
consumption.

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"Department" means the department
of agriculture and biosecurity.

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"Landscape palm" means a coconut
tree treated with pesticides or poisons that make coconuts unsafe for human
consumption and that is maintained solely for ornamental or landscaping
purposes.

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"Natural management" means pest
management practices that do not rely on systemic insecticides and that may
include biological control, trapping, sanitation, fungal or microbial
treatments, habitat management, and other non-toxic or minimally toxic methods
approved by the department.

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"Seed bank" means a managed
collection of viable coconut seeds or seedlings maintained for conservation,
propagation, or replanting.

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149A-C
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Coconut trees; recognition; food and water
source.
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The department shall
establish rules to recognize coconut trees as a natural source of food and
potable water in the State.
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All state departments
and agencies shall, to the extent practicable and consistent with public health
and safety, support policies that preserve and protect consumable coconut
trees.

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149A-D
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Coconut trees; recognition; cultural
treasure.
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The department shall
establish rules to recognize the coconut tree as a cultural treasure of the
State, given its foundational role in Native Hawaiian health practices,
subsistence, traditional knowledge, and cultural continuity.
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All state departments and agencies shall
consider this cultural significance when adopting or implementing policies that
affect coconut trees.

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149A-E
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Coconut seed banks; authorization.
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(a)
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Coconut seed banks are authorized in the State.

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(b)
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Notwithstanding any law to the contrary, coconut trees that are managed
as consumable coconut trees may be allowed to flower and produce viable seeds
for propagation and replanting within the State, subject to reasonable
biosecurity measures established by the department.

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(c)
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The department shall adopt rules to:

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(1)
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Establish
voluntary standards for coconut seed banks;

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(2)
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Minimize
the spread of coconut rhinoceros beetles through coconut seed handling and
transport; and

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(3)
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Encourage
genetic diversity and long-term resilience of coconut tree populations.

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149A-F
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Landscape palms; labeling.
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(a)
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Any coconut tree treated with pesticides or poisons that render the
coconuts unsafe for human consumption shall be clearly identified as a
landscape palm.

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(b)
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The owner or operator of the property on which any coconut tree is
located shall post and maintain a sign clearly indicating that the coconut tree
is a landscape palm and not for human consumption.

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(c)
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The department shall adopt rules establishing minimum labeling
standards, including the visibility, placement, and duration requirements of
any label.

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149A-G
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Rules.
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The department shall adopt rules pursuant to chapter 91 necessary
for the purposes of this part."

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SECTION 2.
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Chapter 235, Hawaii Revised Statutes, is amended by adding a new section
to be appropriately designated and to read as follows:

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"
�235-
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Natural management of the coconut
rhinoceros beetle tax credit.
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(a)
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There
shall be allowed to each taxpayer subject to the tax imposed under this
chapter, who is not eligible to be claimed as a dependent for federal or state
income taxes by another and who files an individual income tax return for a
taxable year, a refundable natural management of the coconut rhinoceros beetle tax
credit that shall be applied against the taxpayer's net income tax liability,
if any, imposed by this chapter for the taxable year in which the credit is
properly claimed.

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(b)
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The amount of the refundable tax credit shall
be equal to per cent of the qualified costs
incurred by the taxpayer to implement natural management practices of the
coconut rhinoceros beetle that result in consumable coconut trees, or
$ , whichever is
less.

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(c)
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The standards for eligibility and a
certification of costs for the tax credit shall be determined by the department
of agriculture and biosecurity.
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The
taxpayer shall submit verification or allow inspection as determined by the
department of agriculture and biosecurity; provided that the verification shall
include a certification by the taxpayer that no systemic or prohibited
pesticides have been applied to the coconut trees and that only natural
management practices implemented by the department of agriculture and biosecurity
have been implemented.

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(d)
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All claims for the tax credit under this
section, including any amended claims, shall be filed on or before the end of
the twelfth month following the close of the taxable year for which the credit
may be claimed.
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Failure to properly
claim the credit shall constitute a waiver of the right to claim the credit.

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(e)
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If the tax credit claimed by the taxpayer under
this section exceeds the taxpayer's net income tax liability, the excess of the
tax credit shall be refunded to the taxpayer; provided that the tax credit
properly claimed by a taxpayer who has no income tax liability shall be paid to
the taxpayer; provided further that no refunds or payments on account of the
tax credit allowed by this section shall be made for amounts less than $1.

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(f)
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No taxpayer who claims the tax credit under
this section shall claim any other credit for the same expenses or costs.

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(g)
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The director of taxation:

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(1)
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Shall prepare any forms that may be
necessary to claim a tax credit under this section;

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(2)
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May require proof of the claim for
the tax credit; and

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(3)
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May adopt rules pursuant to chapter
91 to effectuate the purposes of this section.

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(h)
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For the purposes of this section, "consumable coconut tree"
has the same meaning as defined in section 149A-B.
"

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SECTION 3.
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If any provision of this Act, or the application thereof to any person
or circumstance, is held invalid, the invalidity does not affect other
provisions or applications of the Act that can be given effect without the
invalid provision or application, and to this end the provisions of this Act
are severable.

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SECTION 4.
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In codifying the new sections added by section 1 and referenced in 2 of
this Act, the revisor of statutes shall substitute appropriate section numbers
for the letters used in designating the new sections in this Act.

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SECTION 5.
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New statutory material is underscored.

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SECTION 6.
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This Act shall take effect on July 1, 2026; provided that section 2
shall apply to taxable years beginning after December 31, 2026.

INTRODUCED BY:

_____________________________

Report Title:

DAB; Coconut
Trees; Landscape Palms; Natural Pesticides; Non-Pesticide Management; Seed
Banks; Labeling; Natural Management of Coconut Rhinoceros Beetle Tax Credit

Description:

Establishes
recognition of coconut trees as a source of food and water, and as a cultural
treasure.
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Requires the Department of
Agriculture and Biosecurity to establish rules to allow the use of coconut tree
seed banks in the State.
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Requires owners
or operators of property where any coconut tree is located to post and maintain
a sign that clearly indicates that the coconut tree is a landscape palm.
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Requires the Department of Agriculture and
Biosecurity to establish labeling standards for non-consumable landscape
palms.
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Establishes an income tax credit
for consumable coconut trees maintained through natural management practices.

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