RELATING TO RESILIENCY.

SB3318

THE SENATE

S.B. NO.

3318

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to resiliencY
.

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

Part I

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SECTION
1
.
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The purpose of this Act is to support state
goals for climate and food resiliency.

Part II

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SECTION 2.
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The legislature finds that local agriculture is an essential component
of achieving the State's climate, food resiliency, and economic development
goals.
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Strengthening local food systems
and climate-conscious local agriculture is critical to the environmental and
economic health of the State.
�
To achieve
the State's sustainability targets, economic incentives are necessary to
implement sustainable, resilient, and equitable farming statewide.

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Therefore, the purpose of this part is to establish
a tax credit for farms that practice sustainable agricultural practices.

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SECTION
3
.
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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-
�
Agroecological and climate-smart farming
practices tax credit.
�
(a)
�
There shall be allowed to each qualified
taxpayer subject to the tax imposed under this chapter an agroecological and
climate-smart farming practices tax credit that shall be deductible from 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)
�

The amount of the tax credit shall be equal to the qualified expenses of
the qualified taxpayer, up to a maximum of $25,000 per taxpayer per taxable
year.
�
The total amount of tax credits
allowed under this section shall not exceed
$ for all qualified
taxpayers in any taxable year; provided that any taxpayer who is not eligible
to claim the credit in a taxable year due to the $
cap having been exceeded for that taxable year shall be eligible to claim the
credit in the subsequent taxable year.

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(c)
�
In the case of a partnership, S corporation,
estate, or trust, the tax credit allowable shall be for qualified expenses
incurred by the entity for the taxable year.

�

The expenses upon which the
tax credit is computed shall be determined at the entity level.
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Distribution and share of the credit shall be
determined by rule.

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(d)
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Every qualified taxpayer, before March 31 of each year in which
qualified expenses were incurred by the taxpayer in the previous taxable year,
shall submit a written, certified statement to the chairperson of the board of
agriculture and biosecurity identifying:

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(1)
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Qualified
expenses incurred in the previous taxable year; and

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(2)
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The
amount of the tax credit claimed by the taxpayer pursuant to this section, if
any, in the previous taxable year.

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(e)
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The board of agriculture and biosecurity, in consultation with the department
of taxation, shall establish clear standards for certifying qualified expenses
and eligible farming practices, which shall be reflected in administrative
rules adopted by the department of agriculture and biosecurity to ensure
uniformity and efficiency in administering the tax credit.

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(f)
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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)
�
May
require the taxpayer to furnish reasonable information to ascertain the
validity of the claim for the tax credit made under this section; and

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(3)
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May
adopt rules under chapter 91 necessary to carry out the purposes of this
section.

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(g)
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If the tax credit under this section exceeds the taxpayer's net income
tax liability, the excess amount may be refunded or carried forward for up to
five consecutive taxable years.
�
All
claims for the tax credit under this section, including 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 comply with the foregoing
provision shall constitute a waiver of the right to claim the credit.

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(h)
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For the purposes of this section:

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"Agroecological and climate-smart
farming practices" means sustainable farming practices that promote soil
quality and health; fertility management for organic and conventional farming
systems; preventative and biological pest management; crop rotation, cover
cropping, and polycultures; and the conservation or restoration of native and
Polynesian-introduced plants to agricultural landscapes.
�
Sustainable farming practices shall include
but not be limited to Native Hawaiian agricultural systems such as loi kalo
wetland cultivation, dryland field systems, agroforestry, and loko ia
fishponds.

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"Net income tax liability"
means income tax liability reduced by all other credits allowed under this
chapter.

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"Qualified taxpayer" means a
farmer that adopts agroecological and climate-smart farming practices.
"

Part III

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SECTION 4.
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The legislature finds that one in three households in Hawaii are
struggling to secure consistent access to food.
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This data paints a sobering picture of families in distress,
underscoring the need for immediate action to restore the basic dignity of
nourishment to every household across the islands.

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The legislature further finds that the
crisis disproportionately affects the most vulnerable in Hawaii:

the keiki.
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Nearly thirty per cent of children in Hawaii
are growing up in food-insecure homes, some enduring entire days without a meal.
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When experiencing hunger, keiki can face
increased risk of cognitive issues, aggression, anxiety, behavioral problems,
depression, and suicidal ideation.
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For
families facing hunger, fresh, healthy produce is often one of the first things
removed from grocery lists, negatively affecting long-term health.

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The legislature also finds that this
emergency disproportionately impacts Native Hawaiian and Pacific Islanders in
the State the most, with more than forty per cent of households experiencing
food insecurity, a reflection of longstanding inequities in access to
resources, economic opportunity, and essential services.
�
The legislature believes that the State's
communities should not bear this burden alone.

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The legislature recognizes that Hawaii's
food banks worked with over five hundred agency partners, such as schools,
community-based nonprofits, churches, community centers, and food pantries, to
distribute more than twenty-nine million meals in 2024.
��

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The legislature additionally finds that, to
try to bridge the gap between the State's food banks and their partners to
bring fresh, Hawaii-grown produce to families, the food banks have partnered
with five hundred seventy-five local farms and food hubs to create a consistent
market for Hawaii agricultural producers, strengthening the State's community
food systems and creating a healthier, more resilient Hawaii.

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The legislature notes that efforts to
invest in local agriculture and support local farmers builds resiliency within
the State and avoids greenhouse gas emissions from the shipment of food to the
State.
�
As the cost of importing food
continues to rise, increasing the State's reliance on local agriculture is not
only a sustainable solution but also a necessary one.
�
With proper support, farmers across Hawaii have the potential
to grow more fresh, nutritious food that can directly serve those most in need.
�
By strengthening the connection between local
farms and community food systems, the State can reduce its dependence on
imports and ensure that more families have access to Hawaii‑grown produce
like uala, choy sum, bok choy, long beans, ulu, kalo, and more.

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The legislature further finds that programs
that encourage partnerships between farmers and food assistance programs can
make a profound impact.
�
By investing in
Hawaii-grown agricultural producers, the State can support not only local
farmers but also the communities they feed.
�

This approach aligns with the values of malama aina--caring for the
land--and ensures that the State honors the deep connection between the land
and the people of Hawaii.
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Uplifting
local farmers will also uplift the entire community, fostering a more resilient
food system that can withstand future challenges.

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Accordingly, the purpose of this part is to
establish and appropriate funds for the Hawaii farm to families program to fund
food banks in the State to purchase, store, and transport fresh, Hawaii-grown
or -produced food to food insecure communities.
�
This program will serve the State's food
needs, provide Hawaii's agricultural producers with a market to support their
operations, and keep moneys circulating within the State to boost the local
economy.

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SECTION
5
.
�
Chapter 141, Hawaii Revised Statutes, is
amended by adding a new part to be appropriately designated and to read as
follows:

"
Part
.
�
hawaii farm to
families program

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�
141-
�
Definitions.
�
As used in this part:

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"Department" means the department
of agriculture and biosecurity.

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"Food bank" has the same meaning
as in title 7 United States Code section 7501(5).

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"Fresh, Hawaii-grown or -produced
food" means fruits, vegetables, nuts, coffee, eggs, poultry and poultry
products, livestock products, milk and milk products, aquacultural and
maricultural products, and horticultural products that are one hundred per cent
grown, raised, and harvested in Hawaii.

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�
141-
�
Hawaii farm to families program.

�
(a)
�
There
is established the Hawaii farm to families program to be administered by the
department.
�
Under the program, the
department shall relieve food shortages by providing funds to food banks
located in the State to facilitate consistent supply chains of fresh,
Hawaii-grown or -produced food to food insecure communities.

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(b)
�
Food
banks that receive support pursuant to this section shall use the funds to
purchase, store, and transport fresh, Hawaii-grown or -produced food in the
State to recipients at no cost to the recipients.

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�
141-
�
Rules.

�
The department shall adopt rules pursuant to
chapter 91 necessary to effectuate the purposes of this part."

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SECTION
6
.
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The department of agriculture and biosecurity
shall submit a report to the legislature no later than twenty days prior to the
convening of the regular sessions of
2027 and 2028, which shall include a
summary of the activities of the Hawaii farm to families program, including:

����
(1)
�
The
amount of funds expended by the program;

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(2)
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Food
banks participating in the program, broken down by county;

���������
(3)
�
Amount of food purchased and distributed, by volume and dollar
value;

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(4)
�
Category of food purchased and their island
origin, by volume and dollar value; and

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(5)
�
Any other findings and recommendations,
including any proposed legislation.

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SECTION
7
.
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There is appropriated out of the general
revenues of the State of Hawaii the sum of
$ or so much
thereof as may be necessary for fiscal year 2026-2027 to implement the Hawaii
farm to families program.

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The sum appropriated shall be expended by
the department of agriculture and biosecurity for the purposes of this Act.

Part IV

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SECTION
8
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�
T
he legislature finds that the State
currently imports nearly eighty-five to ninety per cent of its food, making the
State vulnerable to external supply chain disruptions.
�
Farm to school programs provide an
opportunity to increase local food procurement and resilience, reduce the
State's reliance on imported goods, reduce greenhouse gases that would have
been emitted from shipping food into the State, and strengthen the State's
agricultural economy.
��

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The
legislature additionally finds that Act 137, Session Laws of Hawaii 2025, further
clarified the expectations of farm to school meals by requiring the department
of education to
ensure that by January 1, 2030, fresh local agricultural
products and local value-added processed, agricultural, or food products shall
constitute a minimum of thirty per cent of the total food purchased during each
calendar year, as measured by the per cent of total food cost.

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The
legislature also finds that expanding local farm procurement in farm to school
initiatives would support Hawaii's small- and medium-sized farms and that
prioritizing the procurement of locally grown Native Hawaiian crops, such as
kalo,

uala,
and ulu, aligns with Hawaii's commitment to food sovereignty, climate
resilience, and indigenous agricultural practices.
�
Increasing local farm procurement in schools
would provide stable, institutional markets for the State's farmers, thereby
fostering economic growth and workforce development in the State.
��

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Accordingly, the purpose of this part is to
require the department of education to develop systems to support local farms
and encourage participation in the State's farm to school meals systems.

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SECTION
9
.
�
Section 302A-405.6, Hawaii Revised Statutes,
is amended to read as follows:

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"
�302A-405.6
�
Farm to school meals.
�
(a)
�
The department
shall ensure that b
y January 1, 2030, fresh local agricultural products
and local value-added processed, agricultural, or food products shall
constitute a minimum of thirty per cent of the total
food

purchased during each calendar year, as measured by the per cent of total food
cost.

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(b)
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The department shall:

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(1)
�
Streamline
the procurement process to make it easier for small- and medium-scale farmers
to sell to schools, including simplifying contracting requirements and
increasing flexibility in sourcing policies;

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(2)
�
Develop
a statewide database of local farms that are eligible and interested in
supplying food for school meals to facilitate farm to school meal connections;

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(3)
�
Increase
financial incentives for schools to purchase locally sourced food through grant
programs, subsidies, or farm to school meal budget allocations; and

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(4)
�
Ensure
culturally appropriate foods, such as kalo,

uala, and ulu, are incorporated into school meal
programs.

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[
(b)
]
(c)

�
The department shall submit an annual report
to the legislature
no later than twenty days prior to the convening of
each regular session, beginning with the regular session of
2022,
containing the following information:

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(1)
�
The status of the department's progress
in meeting the local farm to school meal goal;

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(2)
�
The percentage
of food served in public schools that consists of locally sourced
products
,
by county,
as
measured by the percentage of the total cost of
food;

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(3)
�
The
costs associated with the farm to school meals program and any savings
realized;

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(4)
�
A
list of all large purchases of locally sourced products and the identity of the
seller;

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(5)
�
A
list of meals on a school menu consisting of the largest percentage of locally
sourced products,
as measured by the percentage of the total cost of
food
;

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(6)
�
The
percentage

of fresh food served
,

by county,
as measured by the
percentage of the total cost of food
;

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(7)
�
The percentage of processed food served
,

by county,
as measured by the
percentage of the total cost of food
;

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(8)
�
A
description of the training conducted to prepare cafeteria staff for cooking
meals from scratch; and

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(9)
�
The
percentage of locally sourced products purchased from the department's largest
distributors,
as measured by the percentage of the total cost of food
.

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[
(c)
]
(d)
�
For the purposes of this section:

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"Fresh local agricultural products" means fruits, vegetables,
nuts, coffee, eggs, poultry and poultry products, livestock and livestock
products, milk and milk products, aquacultural and maricultural products, and
horticultural products that are one hundred per cent grown, raised, and
harvested in Hawaii.

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"Local value-added processed, agricultural, or food products"
means at least fifty-one per cent of the product's primary agricultural product
shall be grown, raised, and harvested in Hawaii.

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"Locally sourced products" means fresh local agricultural
products or local value-added processed, agricultural, or food products.

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"Primary agricultural product" means the major agricultural
product in a processed or value-added agricultural or food product.
"

Part V

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SECTION 10.
�

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 11.
�

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

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SECTION 12.
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This Act shall take effect upon its approval; provided that:

����
(1)
�
Section
3 shall apply to taxable years beginning after December 31, 2025; and

����
(2)
�
Part
III shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

DAB; DOTAX;
DOE; Agroecological and Climate-Smart Farming Practices Tax Credit; Hawaii Farm
to Families Program; Farm to School Meals; Agriculture; Food Systems; Reports;
Appropriation

Description:

Part II: For
taxable years beginning after 12/31/2025, establishes an Agroecological and
Climate-Smart Farming Practices Tax Credit to be administered by the Department
of Taxation.
�
Part III: Establishes the
Hawaii Farm to Families Program and requires the Department of Agriculture and
Biosecurity to submit reports to the Legislature.
�
Appropriates funds.
�
Part IV: Requires the Department of Education
to strengthen the State's farm to school meals program initiatives.
�

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