REPORT TITLE:
Land Use

DESCRIPTION:
Renames the State LUC to the State Planning Commission; redefines
its powers and duties.  Establishes areas of responsibility and
jurisdiction for state and county planning agencies, and State
Important Agricultural Lands Commission; State (agricultural and
conservation) and Counties (urban and rural).

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           740
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO LAND USE.



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

 1                              PART I.
 
 2      SECTION 1.  The legislature finds that there is a need to
 
 3 redefine the relationship of state and county jurisdictions in
 
 4 the area of land planning and utilization to promote efficiency
 
 5 and avoid duplication in the current land use system; to
 
 6 establish clear lines of responsibility for decisionmaking and
 
 7 oversight; to promote the uniform application of state policies
 
 8 regarding the protection of Hawaii's environment and economy, and
 
 9 the provision of shelter and basic necessities of life to all
 
10 members of the community; and to establish a methodology by which
 
11 state and county governments can resolve competing interests.
 
12                             PART II.
 
13      The purpose of this part is to emphasize that the focus of
 
14 the state land use commission is on the broad statewide planning
 
15 issues it was originally created to oversee, and to limit its
 
16 review of site specific developments, except for a few clearly
 
17 delineated instances.  To emphasize this focus, this part renames
 
18 the land use commission as the state planning commission and
 
19 clarifies the responsibilities of the renamed commission.
 

 
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 1      SECTION 2.  Chapter 205, Hawaii Revised Statutes, is amended
 
 2 by adding three new sections to be appropriately designated and
 
 3 to read as follows:
 
 4      "§205-A  Designation of land use districts.  (a)  There
 
 5 shall be four major land use districts in which all lands in the
 
 6 State shall be placed:  urban, rural, agricultural, and
 
 7 conservation.  The commission shall have the sole authority to
 
 8 adjust the district boundaries in the conservation and
 
 9 agricultural districts and the counties shall have the sole
 
10 authority to adjust the district boundaries in the rural and
 
11 urban districts.
 
12      (b)  In order to ensure the consideration of statewide
 
13 concerns by the counties in matters involving the urban and rural
 
14 districts, applications for amendments to district boundaries,
 
15 county zone changes, or development approvals shall be referred
 
16 to the office of planning for state agency review and comment.
 
17 The state agency review shall be coordinated by the office of
 
18 planning, and the office shall consolidate state agency comments
 
19 and transmit them to the appropriate county land use
 
20 decisionmaking authority.  The office shall present written or
 
21 oral testimony, as necessary, to the appropriate county land use
 
22 decisionmaking authority.  In its transmittal and testimony, the
 
23 office shall state whether or not the proposed development:
 

 
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 1      (1)  Meets the district purposes and standards of this
 
 2           chapter, the goals, objectives, and guidelines of the
 
 3           Hawaii state plan, and is consistent with the land use
 
 4           strategy document adopted pursuant to section 205-B and
 
 5           the state functional plans and programs under the
 
 6           Hawaii state plan;
 
 7      (2)  Has an unreasonable adverse health, environmental, or
 
 8           socioeconomic effect on residents or surrounding
 
 9           property;
 
10      (3)  Unreasonably burdens state agencies to provide needed
 
11           roads, schools, and other state facilities and
 
12           services; and
 
13      (4)  Provides reasonable measures to mitigate any
 
14           unreasonable adverse effects or burdens noted above.
 
15      §205-B  State land use strategy document.  (a)  The
 
16 commission shall adopt a state land use strategy document,
 
17 hereinafter referred to as the "strategy document", prepared by
 
18 the office of planning as provided in this section.  The strategy
 
19 document shall be used to guide the decisionmaking of the state
 
20 planning commission and other appropriate state and county
 
21 agencies in their planning activities.
 
22      (b)  The office of planning shall prepare the strategy
 
23 document in coordination with the commission and other
 

 
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 1 appropriate state and county agencies by December 31, 1999.  In
 
 2 formulating the strategy document, the office shall solicit views
 
 3 and concerns of the general public.  The formulation and revision
 
 4 of the strategy document shall conform to this chapter and shall
 
 5 utilize as guidelines, the goals, objectives, and policies
 
 6 contained in chapter 226, the Hawaii state plan.
 
 7      (c)  The strategy document shall identify state program
 
 8 priorities and concerns for the management of resources,
 
 9 facilities, and services under state jurisdiction within each
 
10 county.  The strategy document shall be used to provide early
 
11 input on areas of state concern to county planning processes and
 
12 to facilitate coordination of state program priorities with
 
13 respect to the county or areas within the county to assist in
 
14 county planning processes.  The strategy document shall include:
 
15      (1)  A discussion of projected growth in population or
 
16           economic activity within the State and for each county;
 
17      (2)  Identification of areas of significant resource value
 
18           to the State or natural hazard areas that warrant
 
19           limits to development or special management strategies
 
20           within each county;
 
21      (3)  An assessment of state infrastructure and service
 
22           capacity and needs to accommodate existing and future
 
23           growth in the county or areas within the county; and
 

 
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 1      (4)  A discussion of state or joint state and county actions
 
 2           required to mitigate the impacts of growth on valued
 
 3           resources or state facilities, programs, and services.
 
 4      (d)  The office of planning shall transmit the strategy
 
 5 document to the commission for review.  The commission shall hold
 
 6 public hearings on the strategy document pursuant to chapter 92.
 
 7      (e)  Upon completion of public hearings, the office of
 
 8 planning shall review comments received by the commission on the
 
 9 strategy document and make amendments, as appropriate, to the
 
10 strategy document.  The revised strategy document shall be
 
11 transmitted to the commission for adoption.  The commission shall
 
12 consider and adopt the revised strategy document for transmittal
 
13 to the governor and the legislature.
 
14      (f)  The strategy document shall be reviewed periodically by
 
15 the office of planning pursuant to section 205-18.  Any
 
16 amendments to the strategy document including revisions initiated
 
17 pursuant to section 205-18 shall be adopted pursuant to this
 
18 section.
 
19      §205-C  District boundary amendment decisionmaking
 
20 jurisdiction.  When land use districts under the jurisdiction of
 
21 the State and a county share a common district boundary, district
 
22 boundary amendments shall be decided by:
 
23      (1)  The state planning commission if either agricultural or
 

 
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 1           conservation acreage is to be diminished; or
 
 2      (2)  The appropriate county land use authority if either
 
 3           urban or rural acreage is to be diminished."
 
 4      SECTION 3.  Section 205-1, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "§205-1 Establishment of the commission.  There shall be a
 
 7 state [land use] planning commission, hereinafter called the
 
 8 commission.  The commission shall consist of nine members who
 
 9 shall hold no other public office and shall be appointed in the
 
10 manner and serve for the term set forth in section 26-34.  One
 
11 member shall be appointed from each of the counties and the
 
12 remainder shall be appointed at large.  The commission shall
 
13 elect its chairperson from one of its members.  The members shall
 
14 receive no compensation for their services on the commission, but
 
15 shall be reimbursed for actual expenses incurred in the
 
16 performance of their duties.  Six affirmative votes shall be
 
17 necessary for any boundary amendment.
 
18      The commission shall be a part of the department of
 
19 business, economic development, and tourism for administration
 
20 purposes, as provided for in section 26-35.
 
21      The commission may engage employees necessary to perform its
 
22 duties, including administrative personnel and an executive
 
23 officer.  The executive officer shall be appointed by the
 

 
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 1 commission and the executive officer's position shall be exempt
 
 2 from civil service.  Departments of the state government shall
 
 3 make available to the commission [such] any data, facilities, and
 
 4 personnel [as] that are necessary for it to perform its duties.
 
 5 The commission may receive and utilize gifts and any funds from
 
 6 the federal or other governmental agencies.  It shall adopt rules
 
 7 guiding its conduct, maintain a record of its activities and
 
 8 accomplishments, and make recommendations to the governor and to
 
 9 the legislature through the governor."
 
10      SECTION 4.  Section 205-2, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§205-2 Districting and classification of lands.(a)
 
13 There shall be four major land use districts in which all lands
 
14 in the State shall be placed:  urban, rural, agricultural, and
 
15 conservation.  [The land use commission shall group contiguous
 
16 land areas suitable for inclusion in one of these four major
 
17 districts.] The state planning commission shall have the sole
 
18 authority to adjust the district boundaries in the conservation
 
19 and agricultural districts and the counties shall have the sole
 
20 authority to adjust the district boundaries in the rural and
 
21 urban districts.  The commission shall set standards for
 
22 determining the boundaries of each district, provided that:
 
23      (1)  In the establishment of boundaries of urban districts
 

 
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 1           those lands that are now in urban use and a sufficient
 
 2           reserve area for foreseeable urban growth shall be
 
 3           included;
 
 4      (2)  In the establishment of boundaries for rural districts,
 
 5           areas of land composed primarily of small farms mixed
 
 6           with very low density residential lots, which may be
 
 7           shown by a minimum density of not more than one house
 
 8           per one-half acre and a minimum lot size of not less
 
 9           than one-half acre shall be included, except as herein
 
10           provided;
 
11      (3)  In the establishment of the boundaries of agricultural
 
12           districts the greatest possible protection shall be
 
13           given to those lands with a high capacity for intensive
 
14           cultivation[;] and which meet one of the criteria of
 
15           subsection (d); and
 
16      (4)  In the establishment of the boundaries of conservation
 
17           districts, the "forest and water reserve zones"
 
18           provided in Act 234, section 2, Session Laws of Hawaii
 
19           1957, are renamed "conservation districts" and,
 
20           effective as of July 11, 1961, the boundaries of the
 
21           forest and water reserve zones theretofore established
 
22           pursuant to Act 234, section 2, Session Laws of Hawaii
 
23           1957, shall constitute the boundaries of the
 

 
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 1           conservation districts; provided that thereafter the
 
 2           power to determine the boundaries of the conservation
 
 3           districts shall be in the commission.
 
 4      In establishing the boundaries of the districts in each
 
 5 county, the commission shall give consideration to the master
 
 6 plan or general plan of the county.
 
 7      (b)  Urban districts shall include activities or uses as
 
 8 provided by ordinances or regulations of the county within which
 
 9 the urban district is situated.
 
10      (c)  Rural districts shall include activities or uses as
 
11 characterized by low density residential lots of not more than
 
12 one dwelling house per one-half acre, except as provided by
 
13 county ordinance pursuant to section 46-4(c), in areas where
 
14 "city-like" concentration of people, structures, streets, and
 
15 urban level of services are absent, and where small farms are
 
16 intermixed with low density residential lots except that within a
 
17 subdivision, as defined in section 484-1, the commission for good
 
18 cause may allow one lot of less than one-half acre, but not less
 
19 than 18,500 square feet, or an equivalent residential density,
 
20 within a rural subdivision and permit the construction of one
 
21 dwelling on [such] the lot, provided that all other dwellings in
 
22 the subdivision shall have a minimum lot size of one-half acre or
 
23 21,780 square feet.  [Such] The petition for variance may be
 

 
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 1 processed under the special permit procedure.  These districts
 
 2 may include contiguous areas which are not suited to low density
 
 3 residential lots or small farms by reason of topography, soils,
 
 4 and other related characteristics.  These districts may also
 
 5 include open area recreational facilities, including golf courses
 
 6 and golf driving ranges.
 
 7      (d)  Agricultural districts shall include activities or uses
 
 8 as characterized by the cultivation of crops, orchards, forage,
 
 9 and forestry; farming activities or uses related to animal
 
10 husbandry, aquaculture, and game and fish propagation;
 
11 aquaculture, which means the production of aquatic plant and
 
12 animal life for food and fiber within ponds and other bodies of
 
13 water; wind generated energy production for public, private, and
 
14 commercial use, bona fide agricultural services and uses which
 
15 support the agricultural activities of the fee or leasehold owner
 
16 of the property and accessory to any of the above activities,
 
17 whether or not conducted on the same premises as the agricultural
 
18 activities to which they are accessory, including but not limited
 
19 to farm dwellings as defined in section 205-4.5(a)(4), employee
 
20 housing, farm buildings, mills, storage facilities, processing
 
21 facilities, vehicle and equipment storage areas, and roadside
 
22 stands for the sale of products grown in the premises; wind
 
23 machines and wind farms; small-scale meteorological, air quality,
 

 
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 1 noise, and other scientific and environmental data collection and
 
 2 monitoring facilities occupying less than one-half acre of land,
 
 3 provided that [such] the facilities shall not be used as or
 
 4 equipped for use as living quarters or dwellings; and
 
 5 agricultural parks; and open area recreational facilities[,
 
 6 including golf courses and golf driving ranges]; provided that
 
 7 they are not located within agricultural district lands [with
 
 8 soil classified by the land study bureau's detailed land
 
 9 classification as overall (master) productivity rating class A or
 
10 B.] designated pursuant to paragraphs (1), (2), (3), (4).
 
11      [These districts may include areas which are not used for,
 
12 or which are not suited to, agricultural and ancillary activities
 
13 by reason of topography, solid, and other related
 
14 characteristics.]
 
15      Lands to be considered for agricultural district
 
16 classification shall include but not be limited to the following:
 
17      (1)  Lands whose agricultural land suitability is identified
 
18           as "prime", "unique", or "other" important agricultural
 
19           land by the department of agriculture's agricultural
 
20           lands of importance to the State of Hawaii (ALISH)
 
21           classification system, as classified in 1977;
 
22      (2)  Lands with a land study bureau overall (master)
 
23           productivity rating of A or B, or the productivity
 

 
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 1           rating is A or B if irrigated;
 
 2      (3)  Lands mapped by the land evaluation and site assessment
 
 3           commission pursuant to Act 273, Session Laws of Hawaii,
 
 4           1983, with land evaluation scores above the threshold
 
 5           score established by the land evaluation and site
 
 6           assessment commission; and
 
 7      (4)  Lands not classified by the methods in paragraphs (1)
 
 8           to (3), but which are presently utilized for
 
 9           agricultural production of high-value or unique
 
10           agricultural commodities including, but not limited to,
 
11           coffee, taro, watercress, orchard crops, nonirrigated
 
12           pineapple, lands used for intensive animal husbandry,
 
13           and lands in commercial agricultural cultivation or
 
14           livestock production in five of the ten years
 
15           immediately preceding the date of approval of this Act.
 
16      (e)  Conservation districts shall include areas necessary
 
17 for protecting watersheds and water sources; preserving scenic
 
18 and historic areas; providing park lands, wilderness, and beach
 
19 reserves; conserving indigenous or endemic plants, fish, and
 
20 wildlife, including those which are threatened or endangered;
 
21 preventing floods and soil erosion; forestry; open space areas
 
22 whose existing openness, natural condition, or present state of
 
23 use, if retained, would enhance the present or potential value of
 

 
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 1 abutting or surrounding communities, or would maintain or enhance
 
 2 the conservation of natural or scenic resources; areas of value
 
 3 for recreational purposes; other related activities; and other
 
 4 permitted uses not detrimental to a multiple use conservation
 
 5 concept.
 
 6      (f)  The counties shall bring all county planning and zoning
 
 7 classifications into compliance with the land classifications set
 
 8 forth in this section.  The commission shall have the sole
 
 9 authority to adjust the district boundaries in the conservation
 
10 and agricultural districts and the counties shall have the sole
 
11 authority to adjust the district boundaries in the rural and
 
12 urban districts."
 
13                             PART III.
 
14      SECTION 5.  Adoption of new agricultural district
 
15 boundaries.  (a)  The legislature finds that the state
 
16 agricultural land use district includes marginal lands that are
 
17 unsuited for agricultural purposes or which have been developed
 
18 for non-agricultural use or are more suitable for non-
 
19 agricultural use.  Reclassification of these lands from the
 
20 agricultural district would focus state responsibility on the
 
21 regulation of important agricultural lands.  The following
 
22 process shall be used to facilitate the reclassification of lands
 
23 of lesser agricultural value from the state agricultural district
 

 
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 1 to other districts as appropriate.
 
 2      (b)  The office of planning shall prepare district
 
 3 classification maps showing those lands in the agricultural
 
 4 district which are proposed for reclassification to the urban,
 
 5 rural, or conservation districts.  The office shall identify and
 
 6 prepare these maps in consultation and cooperation with the
 
 7 county planning agencies, department of agriculture, and
 
 8 appropriate agricultural and other interest groups.
 
 9      (c)  The office of planning shall use the land criteria
 
10 provided in section 205-2(d), Hawaii Revised Statutes, as a basis
 
11 for determining the lands to be considered for retention in the
 
12 agricultural district.  The long-range land use patterns and
 
13 areas designated agricultural or rural in adopted county general
 
14 and development or community plans shall also be considered in
 
15 the determination of lands to be proposed for redistricting and
 
16 lands proposed for retention in the agricultural district.  The
 
17 office may also consider the resource value of lands within the
 
18 agricultural district for aquifer recharge.
 
19      (d)  The office of planning shall ensure that state agencies
 
20 are consulted in this process.  The office shall provide
 
21 opportunities in each county for public review and comment
 
22 throughout the process of identifying potential areas for
 
23 amendments to the agricultural district boundaries and
 

 
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 1 delineating the final proposed boundary amendments.
 
 2      (e)  The office of planning shall submit recommendations for
 
 3 boundary amendments to the state planning commission in the form
 
 4 of a report documenting the information used to formulate the
 
 5 recommendations, rationale, proposed district classification
 
 6 maps, and mitigation measures that may be necessary at the time
 
 7 that land use or development applications are submitted to the
 
 8 counties.  The commission shall hold at least one public hearing
 
 9 in each county prior to the final adoption by the commission of
 
10 the proposed district boundaries for that county.  Notice of the
 
11 time and place of the hearing shall be published in accordance
 
12 with chapter 92, Hawaii Revised Statutes.  The notice shall
 
13 indicate the time and place where the maps showing the proposed
 
14 district boundaries within the county may be inspected prior to
 
15 the hearing.  Any person wishing to file recommendations, a
 
16 written protest, or other comments with the commission shall file
 
17 the materials within fifteen days of the hearing.
 
18      (f)  No later than forty-five days after the conclusion of
 
19 the public hearing, the state planning commission shall approve
 
20 or disapprove the proposed district boundary amendments in whole
 
21 or in part.  The adoption of the new district boundaries under
 
22 this section shall require an affirmative vote by two-thirds of
 
23 the total membership of the commission.
 

 
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 1      (g)  When reviewing the new district boundaries proposed for
 
 2 reclassification pursuant to this section, the state planning
 
 3 commission shall specifically consider the following:
 
 4      (1)  The extent to which the proposed reclassification
 
 5           conforms to the district criteria contained in this
 
 6           section; 
 
 7      (2)  The purpose of the reclassification; namely, to remove
 
 8           marginal lands from the agricultural district thereby
 
 9           allowing the State to focus on its responsibilities to
 
10           regulate prime and unique agricultural lands; and
 
11      (3)  The extent to which the proposed reclassification
 
12           conforms to county general and community or development
 
13           plans;
 
14      (h)  No individual petitions or requests for
 
15 reclassification shall be permitted under this section.  District
 
16 boundary amendment requests which are not part of the
 
17 recommendations made pursuant to this section shall be subject to
 
18 the district boundary amendment provisions of sections 205-3.1
 
19 and 205-4, Hawaii Revised Statutes.
 
20      (i)  A change in land use district classification of a
 
21 parcel or parcels resulting from a state planning commission
 
22 decision pursuant to this section may be appealed to the circuit
 
23 court of the circuit in which the land in question is situated.
 

 
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 1 The district boundaries and classification of parcels not subject
 
 2 to an appeal shall remain in full force and effect.
 
 3      The appeal shall be filed within sixty days of the date of
 
 4 the state planning commission's decision.  The appeal shall be in
 
 5 accord with chapter 91, Hawaii Revised Statutes, and the Hawaii
 
 6 rules of civil procedure.
 
 7      (j)  All proposed uses or projects on lands which are
 
 8 reclassified by the state planning commission pursuant to this
 
 9 section and which require approval by a state or county agency or
 
10 decision-making body, shall be referred to the office of planning
 
11 for review and comment by state agencies as necessary.  The
 
12 applicable state or county agency or officer shall also advise
 
13 state agencies commenting under subsection (c) of any application
 
14 which may affect their identified area of state interest.  The
 
15 agency or officer shall allow the office to coordinate state
 
16 agency reviews and comments on the effect of the proposed project
 
17 prior to any approval.
 
18      (k)  The new district boundaries shall be adopted in final
 
19 form on or before December 31, 2000.
 
20      (l)  The counties shall bring all county planning and zoning
 
21 classifications into compliance with the land classifications set
 
22 forth in this section.  The commission shall have the sole
 
23 authority to adjust the district boundaries in the conservation
 

 
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 1 and agricultural districts and the counties shall have the sole
 
 2 authority to adjust the district boundaries in the rural and
 
 3 urban districts.
 
 4      SECTION 6.  Section 205-4, Hawaii Revised Statutes, is
 
 5 amended by amending the title and subsection (a) to read as
 
 6 follows:
 
 7      "§205-4 [Amendments to district boundaries involving land
 
 8 areas greater than fifteen acres.] Amendment process.  (a)  Any
 
 9 department or agency of the State, any department or agency of
 
10 the county in which the land is situated, or any person with a
 
11 property interest in the land sought to be reclassified, may
 
12 petition the [land use] state planning commission for a change in
 
13 the boundary of a district.  This section applies to all
 
14 petitions for changes in district boundaries of lands within the
 
15 conservation and agricultural districts [and all petitions for
 
16 changes in district boundaries involving lands greater than
 
17 fifteen acres in the agricultural, rural, and urban districts,
 
18 except as provided in section 201E-210].  The [land use] state
 
19 planning commission shall adopt rules pursuant to chapter 91 to
 
20 implement section 201E-210."
 
21      SECTION 7.  Section 205-4.5, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 
23      "§205-4.5  Permissible uses within the agricultural
 

 


 

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 1 districts.(a)  Within the agricultural district [with soil
 
 2 classified by the land study bureau's detailed land
 
 3 classification as overall (master) productivity rating class A or
 
 4 B], all lands designated as agricultural lands under section
 
 5 205-2(d)(1), (2), (3), and (4), shall be restricted to the
 
 6 following permitted uses:
 
 7      (1)  Cultivation of crops, including but not limited to
 
 8           flowers, vegetables, foliage, fruits, forage, and
 
 9           timber;
 
10      (2)  Game and fish propagation;
 
11      (3)  Raising of livestock, including but not limited to
 
12           poultry, bees, fish, or other animal or aquatic life
 
13           that are propagated for economic or personal use;
 
14      (4)  Farm dwellings, employee housing, farm buildings, or
 
15           activity or uses related to farming and animal
 
16           husbandry;
 
17           Farm dwelling as used in this paragraph means a single-
 
18           family dwelling located on and used in connection with
 
19           a farm, including clusters of single-family farm
 
20           dwellings permitted within agricultural parks developed
 
21           by the State, or where agricultural activity provides
 
22           income to the family occupying the dwelling;
 
23      (5)  Public institutions and buildings which are necessary
 

 
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 1           for agricultural practices;
 
 2      (6)  Public and private open area types of recreational uses
 
 3           including day camps, picnic grounds, parks, and riding
 
 4           stables, but not including dragstrips, airports, drive-
 
 5           in theaters, golf courses, golf driving ranges, country
 
 6           clubs, and overnight camps;
 
 7      (7)  Public, private, and quasi-public utility lines and
 
 8           roadways, transformer stations, communications
 
 9           equipment buildings, solid waste transfer stations,
 
10           major water storage tanks, and appurtenant small
 
11           buildings such as booster pumping stations, but not
 
12           including offices or yards for equipment, material,
 
13           vehicle storage, repair or maintenance, or treatment
 
14           plants, or corporation yards, or other like structures;
 
15      (8)  Retention, restoration, rehabilitation, or improvement
 
16           of buildings or sites of historic or scenic interest;
 
17      (9)  Roadside stands for the sale of agricultural products
 
18           grown on the premises;
 
19     (10)  Buildings and uses, including but not limited to mills,
 
20           storage, and processing facilities, maintenance
 
21           facilities, and vehicle and equipment storage areas
 
22           that are normally considered directly accessory to the
 
23           abovementioned uses and are permitted under section
 

 
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 1           205-2(d);
 
 2     (11)  Agricultural parks; or
 
 3     (12)  Wind energy facilities, including the appurtenances
 
 4           associated with the production and transmission of wind
 
 5           generated energy; provided that such facilities and
 
 6           appurtenances are compatible with agriculture uses and
 
 7           cause minimal adverse impact on agricultural land.
 
 8      (b)  Uses not expressly permitted in subsection (a) shall be
 
 9 prohibited, except the uses permitted as provided in [sections
 
10 205-6 and] section 205-8, and construction of single-family
 
11 dwellings on lots existing before June 4, 1976.  Any other law to
 
12 the contrary notwithstanding, no subdivision of land within the
 
13 agricultural district [with soil classified by the land study
 
14 bureau's detailed land classification as overall (master)
 
15 productivity rating class A or B] designated as agricultural
 
16 lands under section 205-2(d)(1), (2), (3), and (4), shall be
 
17 approved by a county unless [the said] those A and B lands within
 
18 the subdivision shall be made subject to the restriction on uses
 
19 as prescribed in this section and to the condition that the uses
 
20 shall be primarily in pursuit of an agricultural activity.
 
21      Any deed, lease, agreement of sale, mortgage, or other
 
22 instrument of conveyance covering any land within the
 
23 agricultural subdivision shall expressly contain the restriction
 

 
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 1 on uses and the condition as prescribed in this section which
 
 2 restriction and condition shall be encumbrances running with the
 
 3 land until such time that the land is reclassified to a land use
 
 4 district other than agricultural district.
 
 5      If the foregoing requirement of encumbrances running with
 
 6 the land jeopardizes the owner or lessee from obtaining mortgage
 
 7 financing from any of the mortgage lending agencies set forth
 
 8 hereinbelow, and [said] the requirement is the sole reason for
 
 9 failure to obtain mortgage financing, then [such] the requirement
 
10 of encumbrances shall, insofar as [such] the mortgage financing
 
11 is so jeopardized, be conditionally waived by the appropriate
 
12 county enforcement officer; provided that [such] the conditional
 
13 waiver shall thereafter become effective only in the event that
 
14 the property is subjected to foreclosure proceedings by the
 
15 mortgage lender.
 
16      The mortgage lending agencies mentioned hereinabove are the
 
17 Federal Housing Administration, Federal National Mortgage
 
18 Association, Department of Veterans [Administration,] Affairs,
 
19 Small Business Administration, United States Department of
 
20 Agriculture, Federal Land Bank of Berkeley, Federal Intermediate
 
21 Credit Bank of Berkeley, Berkeley Bank for Cooperatives, and any
 
22 other federal, state, or private mortgage lending agency
 
23 qualified to do business in Hawaii, and their respective
 

 
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 1 successors and assigns.
 
 2      (c)  Within the agricultural district all lands[, with soil
 
 3 classified by the land study bureau's detailed land
 
 4 classification as overall (master) productivity rating class C,
 
 5 D, E, or U] shall be restricted to the uses permitted for
 
 6 agricultural districts as set forth in section 205-5(b)."
 
 7      SECTION 8.  Section 205-5, Hawaii Revised Statutes, is
 
 8 amended by amending subsections (b) and (c) to read as follows:
 
 9      "(b)  Within agricultural districts, uses compatible to the
 
10 activities described in section 205-2 as determined by the
 
11 commission shall be permitted; provided that accessory
 
12 agricultural uses and services described in sections 205-2 and
 
13 205-4.5 may be further defined by each county by zoning
 
14 ordinance.  Other uses may be allowed by special permits issued
 
15 pursuant to this chapter.  The minimum lot size in agricultural
 
16 districts shall be determined by each county by zoning ordinance,
 
17 subdivision ordinance, or other lawful means; provided that the
 
18 minimum lot size for any agricultural use shall not be less than
 
19 [one acre,] five acres, except as provided [herein.] in this
 
20 chapter.  If the county finds that unreasonable economic hardship
 
21 to the owner or lessee of land cannot otherwise be prevented or
 
22 where land utilization is improved, the county may allow lot
 
23 sizes of less than the minimum lot size as specified by law for
 

 
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                                     S.B. NO.           740
                                                        
                                                        

 
 1 lots created by a consolidation of existing lots within an
 
 2 agricultural district and the resubdivision thereof; provided
 
 3 that the consolidation and resubdivision do not result in an
 
 4 increase in the number of lots over the number existing prior to
 
 5 consolidation; and provided further that in no event shall a lot,
 
 6 which is equal to or exceeds the minimum lot size of [one acre]
 
 7 five acres be less than that minimum after the consolidation and
 
 8 resubdivision action.  The county may also allow lot sizes of
 
 9 less than the minimum lot size as specified by law for lots
 
10 created or used for public, private, and quasi-public utility
 
11 purposes, and for lots resulting from the subdivision of
 
12 abandoned roadways and railroad easements.
 
13      (c)  Unless authorized by special permit issued pursuant to
 
14 this chapter, only the following uses shall be permitted within
 
15 rural districts:
 
16      (1)  Low density residential uses;
 
17      (2)  Agricultural uses; [and]
 
18      (3)  Public, quasi-public, and public utility facilities[.];
 
19           and
 
20      (4)  Golf courses and golf driving ranges.
 
21      In addition, the minimum lot size for any low density
 
22 residential use shall be one-half acre and there shall be but one
 
23 dwelling house per one-half acre, except as provided for in
 

 
Page 25                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1 section 205-2."
 
 2      SECTION 9.  Section 205-12, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§205-12  [Enforcement.  The appropriate officer or agency
 
 5 charged with the administration of county zoning laws shall]
 
 6 Monitoring and enforcement.  (a)  The appropriate county planning
 
 7 department shall provide the commission with an annual report on
 
 8 the status of the development of lands reclassified by the
 
 9 commission and located within that county.
 
10      (b)  The appropriate county planning department, the
 
11 appropriate officer or agency charged with the administration of
 
12 county zoning laws, and the State shall have the authority to
 
13 enforce within each county the land use classification districts
 
14 adopted by the [land use] state planning commission and the
 
15 restriction on use and the condition relating to agricultural
 
16 districts under section 205-4.5 and shall report to the
 
17 commission all violations."
 
18      SECTION 10.  Section 205-17, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "§205-17  [Land use] State planning commission
 
21 decisionmaking criteria.  (a)  In its review of any petition for
 
22 reclassification of district boundaries pursuant to this chapter,
 
23 the commission shall [specifically] consider and balance the
 

 
Page 26                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1 following:
 
 2      (1)  The extent to which the proposed reclassification
 
 3           conforms to the applicable goals, objectives, and
 
 4           policies of the Hawaii state plan and relates to the
 
 5           applicable priority guidelines of the Hawaii state plan
 
 6           [and], the adopted functional plans;
 
 7      (2)  The extent to which the proposed reclassification
 
 8           conforms to the applicable district standards[;], and
 
 9           the land use strategy document adopted pursuant to
 
10           section 205-B; and
 
11      (3)  The impact of the proposed reclassification on the
 
12           following areas of state concern:
 
13           (A)  Preservation or maintenance of important natural
 
14                systems or habitats;
 
15           (B)  Maintenance of valued cultural, historical, or
 
16                natural resources;
 
17           (C)  Maintenance of other natural resources relevant to
 
18                Hawaii's economy, including, but not limited to,
 
19                agricultural resources;
 
20           (D)  Commitment of state funds and resources;
 
21           (E)  Provision for employment opportunities and
 
22                economic development; and
 
23           (F)  Provision for housing opportunities for all income
 

 
Page 27                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1                groups, particularly the low, low-moderate, and
 
 2                gap groups; and
 
 3      (4)  The representations and commitments made by the
 
 4           petitioner in securing a boundary change.
 
 5      (b)  Any petitions for reclassification of agricultural land
 
 6 to any other category shall be submitted to the commission to
 
 7 first determine whether or not the agricultural lands are
 
 8 important agricultural lands.  The commission shall then
 
 9 consider:
 
10      (1)  The importance of the land for agriculture based on the
 
11           land evaluation rating and other evidence presented as
 
12           to the suitability of the land for agricultural
 
13           purposes;
 
14      (2)  The public benefit provided by reclassification.  The
 
15           commission must find that by a preponderance of the
 
16           evidence presented that on balance the public benefit
 
17           from the reclassification outweighs the retention of
 
18           the land in agriculture; and
 
19      (3)  Whether the proposed reclassification will have
 
20           significant impact upon the viability of agricultural
 
21           operations on important agricultural lands.
 
22      (c)  When adjusting the boundaries in the rural and urban
 
23 districts, the counties shall consider and balance the
 

 
Page 28                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1 decisionmaking criteria set forth in subsection (a).
 
 2      (d)  In its review of any petition for reclassification of
 
 3 district boundaries, the commission shall limit its review to
 
 4 whether reclassification is permitted pursuant to the criteria
 
 5 and standards set forth in this chapter and shall not engage in
 
 6 zoning matters reserved to the counties pursuant to section
 
 7 46-4."
 
 8      SECTION 11.  Section 205-18, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "§205-18  [Periodic review of districts.] Five-year boundary
 
11 review process.  The office of planning shall undertake a review
 
12 of the state land use strategy document and of the classification
 
13 and districting of all lands in the State, within five years from
 
14 [December 31, 1985,] December 31, 1997, and every fifth year
 
15 thereafter.  The office, in its five-year boundary review, shall
 
16 focus its efforts on reviewing the Hawaii state plan, county
 
17 general plans, [and] county development and community plans[.],
 
18 and the existing land use process.  Upon completion of the five-
 
19 year boundary review, the office shall submit a report of the
 
20 findings to the commission.  The office may initiate amendments
 
21 to the strategy document to further the land use strategy goals,
 
22 policies, and objectives.  The office may also initiate state
 
23 land use boundary amendments which it deems appropriate to
 

 
Page 29                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1 conform to these plans.  The office may seek assistance of
 
 2 appropriate state and county agencies and may employ consultants
 
 3 and undertake studies in making this review."
 
 4      SECTION 12.  Section 225M-2, Hawaii Revised Statutes, is
 
 5 amended by amending subsection (b) to read as follows:
 
 6      "(b)  The office of planning shall gather, analyze, and
 
 7 provide information to the governor to assist in the overall
 
 8 analysis and formulation of state policies and strategies to
 
 9 provide central direction and cohesion in the allocation of
 
10 resources and effectuation of state activities and programs, and
 
11 effectively address current or emerging issues and opportunities.
 
12 More specifically, the office shall engage in the following
 
13 activities:
 
14      (1)  State comprehensive planning and program coordination.
 
15           Formulating and articulating comprehensive statewide
 
16           goals, objectives, policies, and priorities, and
 
17           coordinating their implementation through the statewide
 
18           planning system established in part II of chapter 226;
 
19      (2)  Strategic planning.  Identifying and analyzing
 
20           significant issues, problems, and opportunities
 
21           confronting the State, and formulating strategies and
 
22           alternative courses of action in response to identified
 
23           problems and opportunities by:
 

 
Page 30                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1           (A)  Providing in-depth policy research, analysis, and
 
 2                recommendations on existing or potential areas of
 
 3                critical state concern;
 
 4           (B)  Examining and evaluating the effectiveness of
 
 5                state programs in implementing state policies and
 
 6                priorities;
 
 7           (C)  Monitoring and forecasting through surveys,
 
 8                environmental scanning, modeling, and other
 
 9                techniques--current and future social, economic,
 
10                and physical conditions and trends; and
 
11           (D)  Developing, in collaboration with affected public
 
12                or private agencies and organizations,
 
13                implementation plans and schedules and, where
 
14                appropriate, assisting in the mobilization of
 
15                resources to meet identified needs;
 
16      (3)  Planning coordination and cooperation.  Facilitating
 
17           coordinated and cooperative planning and policy
 
18           development and implementation activities among state
 
19           agencies, and between the state, county, and federal
 
20           governments, by:
 
21           (A)  Reviewing, assessing, and coordinating, as
 
22                necessary, major plans, programs, projects, and
 
23                regulatory activities existing or proposed by
 

 
Page 31                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1                state and county agencies; and
 
 2           (B)  Formulating mechanisms to simplify, streamline, or
 
 3                coordinate interagency development and regulatory
 
 4                processes;
 
 5      (4)  Planning information system.  Collecting, analyzing,
 
 6           maintaining, and disseminating data and information to
 
 7           further effective state planning, policy analysis and
 
 8           development, and delivery of government services by:
 
 9           (A)  Assembling, organizing, evaluating, and
 
10                classifying existing data and performing necessary
 
11                basic research in order to provide a common data
 
12                base for governmental planning;
 
13           (B)  Planning, developing, implementing, and
 
14                coordinating a statewide planning and geographic
 
15                information system.  The office shall be the lead
 
16                agency responsible for planning and coordinating
 
17                the establishment of a multi-agency, statewide
 
18                geographic information system and the development
 
19                of planning applications including spatial data
 
20                analyses to enhance decision making; and
 
21           (C)  Maintaining a centralized depository of state and
 
22                national planning references;
 
23      (5)  Land use planning.  Developing and presenting the
 

 
Page 32                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1           position of the State in all boundary change petitions
 
 2           and proceedings before the [land use] state planning
 
 3           commission, assisting state agencies in the development
 
 4           and submittal of petitions for land use district
 
 5           boundary amendments, and [conducting periodic reviews
 
 6           of the classification and districting of all lands in
 
 7           the State, as specified in] performing functions
 
 8           pursuant to chapter 205[;], including preparation of
 
 9           the state land use strategy document, coordination of
 
10           state agency project reviews, and conducting five-year
 
11           boundary reviews;
 
12      (6)  Coastal and ocean policy management.  Carrying out the
 
13           lead agency responsibilities for the Hawaii coastal
 
14           zone management program, as specified in chapter 205A.
 
15           Also, developing and maintaining an ocean and coastal
 
16           resources information, planning, and management system
 
17           further developing and coordinating implementation of
 
18           the ocean resources management plan, and formulating
 
19           ocean policies with respect to the exclusive economic
 
20           zone, coral reefs, and national marine sanctuaries;
 
21      (7)  Regional planning and studies.  Conducting plans and
 
22           studies to determine:
 
23           (A)  The capability of various regions within the State
 

 
Page 33                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1                to support projected increases in both resident
 
 2                populations and visitors;
 
 3           (B)  The potential physical, social, economic, and
 
 4                environmental impact on these regions resulting
 
 5                from increases in both resident populations and
 
 6                visitors;
 
 7           (C)  The maximum annual visitor carrying capacity for
 
 8                the State by region, county, and island; and
 
 9           (D)  The appropriate guidance and management of
 
10                selected regions and areas of statewide critical
 
11                concern.
 
12           The studies in subparagraphs (A) to (C) shall be
 
13           conducted at appropriate intervals, but not less than
 
14           once every five years; and
 
15      (8)  Regional, national, and international planning.
 
16           Participating in and assuring that state plans,
 
17           policies, and objectives are consistent, to the extent
 
18           practicable, with regional, national, and international
 
19           planning efforts."
 
20      SECTION 13.  Section 226-52, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "§226-52  Statewide planning system.(a)  The statewide
 
23 planning system shall consist of the following policies, plans,
 

 
Page 34                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1 and programs:
 
 2      (1)  The overall theme, goals, objectives, and policies
 
 3           established in this chapter that shall provide the
 
 4           broad guidelines for the State;
 
 5      (2)  The priority guidelines established in this chapter
 
 6           that shall provide guidelines for decisionmaking by the
 
 7           State and the counties for the immediate future and set
 
 8           priorities for the allocation of resources.  The
 
 9           formulation and revision of state functional plans
 
10           shall be in conformance with the priority guidelines;
 
11      (3)  State functional plans that shall be prepared to
 
12           address, but not be limited to, the areas of
 
13           agriculture, conservation lands, education, energy,
 
14           higher education, health, historic preservation,
 
15           housing, recreation, tourism, and transportation.  The
 
16           preparing agency for each state functional plan shall
 
17           also consider applicable federal laws, policies, or
 
18           programs that impact upon the functional plan area.
 
19           State functional plans shall define, implement, and be
 
20           in conformance with the overall theme, goals,
 
21           objectives, policies, and priority guidelines contained
 
22           within this chapter.  County general plans and
 
23           development plans shall be taken into consideration in
 

 
Page 35                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1           the formulation and revision of state functional plans;
 
 2      (4)  County general plans that shall indicate desired
 
 3           population and physical development patterns for each
 
 4           county and regions within each county.  In addition,
 
 5           county general plans or development plans shall address
 
 6           the unique problems and needs of each county and
 
 7           regions within each county.  County general plans or
 
 8           development plans shall further define the overall
 
 9           theme, goals, objectives, policies, and priority
 
10           guidelines contained within this chapter.  State
 
11           functional plans shall be taken into consideration in
 
12           amending the county general plans; [and]
 
13      (5)  State programs that shall include but not be limited to
 
14           programs involving coordination and review; research
 
15           and support; design, construction, and maintenance;
 
16           services; and regulatory powers.  State programs that
 
17           exercise coordination and review functions shall
 
18           include but not be limited to the state clearinghouse
 
19           process, the capital improvements program, and the
 
20           coastal zone management program.  State programs that
 
21           exercise regulatory powers in resource allocation shall
 
22           include but not be limited to the land use and
 
23           management programs administered by the [land use]
 

 
Page 36                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1           state planning commission and the board of land and
 
 2           natural resources.  State programs shall further
 
 3           define, implement, and be in conformance with the
 
 4           overall theme, goals, objectives, and policies, and
 
 5           shall utilize as guidelines the priority guidelines
 
 6           contained within this chapter, [and] the state
 
 7           functional plans approved pursuant to this chapter[.],
 
 8           and the state land use strategy document adopted
 
 9           pursuant to section 205-B; and
 
10      (6)  The state land use strategy document adopted pursuant
 
11           to section 205-B that identifies state priorities and
 
12           concerns for the direction and pattern of growth within
 
13           the State.  The document shall provide guidelines for
 
14           land use decisionmaking by the state planning
 
15           commission and the counties.  The formulation and
 
16           revision of the document shall be in conformance with
 
17           the overall theme, goals, objectives, policies, and
 
18           priority guidelines contained in this chapter.
 
19      (b)  The statewide planning system shall also consist of
 
20 several implementation mechanisms, including:
 
21      (1)  Overall plan review, coordination, and evaluation.
 
22           Overall plan review, coordination, and evaluation shall
 
23           be conducted by the office;
 

 
Page 37                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1      (2)  The state budgetary, land use, and other decisionmaking
 
 2           processes.  The state budgetary, land use, and other
 
 3           decisionmaking processes shall consist of:
 
 4           (A)  The program appropriations process.  The
 
 5                appropriation of funds for major programs under
 
 6                the biennial and supplemental budgets shall be in
 
 7                conformance with the overall theme, goals,
 
 8                objectives, and policies, and shall utilize as
 
 9                guidelines the priority guidelines contained
 
10                within this chapter, and the state functional
 
11                plans approved pursuant to this chapter;
 
12           (B)  The capital improvement project appropriations
 
13                process.  The appropriation of funds for major
 
14                plans and projects under the capital improvements
 
15                program shall be in conformance with the overall
 
16                theme, goals, objectives, and policies, and shall
 
17                utilize as guidelines the priority guidelines
 
18                contained within this chapter, and the state
 
19                functional plans approved pursuant to this
 
20                chapter;
 
21           (C)  The budgetary review process of the department of
 
22                budget and finance.  The budgetary review and
 
23                allocation process of the department of budget and
 

 
Page 38                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1                finance shall be in conformance with the overall
 
 2                theme, goals, objectives, and policies, and shall
 
 3                utilize as guidelines the priority guidelines
 
 4                contained within this chapter, and the state
 
 5                functional plans approved pursuant to this
 
 6                chapter;
 
 7           (D)  Land use decisionmaking processes of state
 
 8                agencies.  Land use decisions made by state
 
 9                agencies shall be in conformance with the overall
 
10                theme, goals, objectives, and policies, and shall
 
11                utilize as guidelines the priority guidelines
 
12                contained within this chapter, [and] the state
 
13                functional plans approved pursuant to this
 
14                chapter[.], and the state land use strategy
 
15                document adopted pursuant to section 205-B.  The
 
16                rules adopted by appropriate state agencies to
 
17                govern land use decisionmaking shall be in
 
18                conformance with the overall theme, goals,
 
19                objectives, and policies contained within this
 
20                chapter; and
 
21           (E)  All other regulatory and administrative
 
22                decisionmaking processes of state agencies, which
 
23                shall be in conformance with the overall theme,
 

 
Page 39                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1                goals, objectives, and policies, and shall utilize
 
 2                as guidelines the priority guidelines contained
 
 3                within this chapter, [and] the state functional
 
 4                plans approved pursuant to this chapter[.], and
 
 5                the state land use strategy document adopted
 
 6                pursuant to section 205-B.  Rules adopted by state
 
 7                agencies to govern decisionmaking shall be in
 
 8                conformance with the overall theme, goals,
 
 9                objectives, and policies contained within this
 
10                chapter;
 
11      (3)  The strategic planning processes.  The office and other
 
12           state agencies shall conduct strategic planning
 
13           activities to identify and analyze significant issues,
 
14           problems, and opportunities confronting the State,
 
15           including the examination and evaluation of state
 
16           programs in implementing state policies and the
 
17           formulation of strategies and alternative courses of
 
18           action in response to identified problems and
 
19           opportunities.  Strategic planning processes may
 
20           include the conduct of surveys, modeling, and other
 
21           monitoring and forecasting instruments such as
 
22           environmental scanning to assess current and future
 
23           social, economic, and physical conditions and trends.
 

 
Page 40                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1           In conducting strategic planning activities, the office
 
 2           and other state agencies shall ensure that general
 
 3           public and agency concerns are solicited and taken into
 
 4           consideration.  The formation of task forces, ad hoc
 
 5           committees, or other advisory bodies comprised of
 
 6           interested parties may serve to facilitate public
 
 7           involvement in specific planning projects; and
 
 8      (4)  Other coordination processes which include the use of
 
 9           the state clearinghouse process.  The state
 
10           clearinghouse shall coordinate the review of all
 
11           federally-assisted and direct federal development
 
12           projects which are covered under the state
 
13           clearinghouse process."
 
14      SECTION 14.  Section 226-59, Hawaii Revised Statutes, is
 
15 amended by amending subsection (a) to read as follows:
 
16      "(a)  The formulation, administration, and implementation of
 
17 state programs shall be in conformance with the overall theme,
 
18 goals, objectives, and policies, and shall utilize as guidelines
 
19 the priority guidelines contained within this chapter, [and] the
 
20 state functional plans approved pursuant to this chapter[.], and
 
21 state land use strategy document adopted pursuant to section
 
22 205-B."
 
23      SECTION 15.  Section 205-3.1, Hawaii Revised Statutes, is
 

 
Page 41                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1 repealed.
 
 2      ["§205-3.1  Amendments to district boundaries.(a)
 
 3 District boundary amendments involving land areas greater than
 
 4 fifteen acres shall be processed by the land use commission
 
 5 pursuant to section 205-4.
 
 6      (b)  Any department or agency of the State, and department
 
 7 or agency of the county in which the land is situated, or any
 
 8 person with a property interest in the land sought to be
 
 9 reclassified may petition the appropriate county land use
 
10 decision-making authority of the county in which the land is
 
11 situated for a change in the boundary of a district involving
 
12 lands less than fifteen acres presently in the agricultural,
 
13 rural, and urban districts.
 
14      (c)  District boundary amendments involving land areas of
 
15 fifteen acres or less, except in conservation districts, shall be
 
16 determined by the appropriate county land use decision-making
 
17 authority for said district and shall not require consideration
 
18 by the land use commission pursuant to section 205-4.  District
 
19 boundary amendments involving land areas of fifteen acres or less
 
20 in conservation districts shall be processed by the land use
 
21 commission pursuant to section 205-4.  The appropriate county
 
22 land use decision-making authority may consolidate proceedings to
 
23 amend state land use district boundaries pursuant to this
 

 
Page 42                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1 subsection, with county proceedings to amend the general plan,
 
 2 development plan, zoning of the affected land or such other
 
 3 proceedings.  Appropriate ordinances and rules to allow
 
 4 consolidation of such proceedings may be developed by the county
 
 5 land use decision-making authority.
 
 6      (d)  The county land use decision-making authority shall
 
 7 serve a copy of the application for a district boundary amendment
 
 8 to the land use commission and the department of business,
 
 9 economic development, and tourism and shall notify the commission
 
10 and the department of the time and place of the hearing and the
 
11 proposed amendments scheduled to be heard at the hearing.  A
 
12 change in the state land use district boundaries pursuant to this
 
13 subsection shall become effective on the day designated by the
 
14 county land use decision-making authority in its decision.
 
15 Within sixty days of the effective date of any decision to amend
 
16 state land use district boundaries by the county land use
 
17 decision-making authority, the decision and the description and
 
18 map of the affected property shall be transmitted to the land use
 
19 commission and the department of business, economic development,
 
20 and tourism by the county planning director."]
 
21      SECTION 16.  Section 205-6, Hawaii Revised Statutes, is
 
22 repealed.
 
23      ["§205-6 Special permit.(a)  The county planning
 

 
Page 43                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1 commission may permit certain unusual and reasonable uses within
 
 2 agricultural and rural districts other than those for which the
 
 3 district is classified.  Any person who desires to use the
 
 4 person's land within an agricultural or rural district other than
 
 5 for an agricultural or rural use, as the case may be, may
 
 6 petition the planning commission of the county within which the
 
 7 person's land is located for permission to use the person's land
 
 8 in the manner desired.  Each county may establish the appropriate
 
 9 fee for processing the special permit petition.
 
10      (b)  The planning commission, upon consultation with the
 
11 central coordinating agency, except in counties where the
 
12 planning commission is advisory only in which case the central
 
13 coordinating agency, shall establish by rule or regulation, the
 
14 time within which the hearing and action on petition for special
 
15 permit shall occur.  The county planning commission shall notify
 
16 the land use commission and such persons and agencies that may
 
17 have an interest in the subject matter of the time and place of
 
18 the hearing.
 
19      (c)  The county planning commission may under such
 
20 protective restrictions as may be deemed necessary, permit the
 
21 desired use, but only when the use would promote the
 
22 effectiveness and objectives of this chapter.  A decision in
 
23 favor of the applicant shall require a majority vote of the total
 

 
Page 44                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1 membership of the county planning commission.
 
 2      (d)  Special permits for land the area of which is greater
 
 3 than fifteen acres shall be subject to approval by the land use
 
 4 commission.  The land use commission may impose additional
 
 5 restrictions as may be necessary or appropriate in granting such
 
 6 approval, including the adherence to representations made by the
 
 7 applicant.
 
 8      (e)  A copy of the decision together with the complete
 
 9 record of the proceeding before the county planning commission on
 
10 all special permit requests involving a land area greater than
 
11 fifteen acres shall be transmitted to the land use commission
 
12 within sixty days after the decision is rendered.  Within
 
13 forty-five days after receipt of the complete record from the
 
14 county planning commission, the land use commission shall act to
 
15 approve, approve with modification, or deny the petition.  A
 
16 denial either by the county planning commission or by the land
 
17 use commission, or a modification by the land use commission, as
 
18 the case may be, of the desired use shall be appealable to the
 
19 circuit court of the circuit in which the land is situated and
 
20 shall be made pursuant to the Hawaii rules of civil procedure.
 
21      (f)  Land uses substantially involving or supporting
 
22 educational ecotourism, related to the preservation of native
 
23 Hawaiian endangered, threatened, proposed, and candidate species,
 

 
Page 45                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1 that are allowed in an approved habitat conservation plan under
 
 2 section 195D-21 or safe harbor agreement under section 195D-22,
 
 3 which are not identified as permissible uses within the
 
 4 agricultural district under sections 205-2 and 205-4.5, may be
 
 5 permitted in the agricultural district by special permit under
 
 6 this section, on lands with soils classified by the land study
 
 7 bureau's detailed land classification as overall (master)
 
 8 productivity rating class C, D, E, or U."]
 
 9                             PART IV.
 
10      SECTION 17.  Section 196D-10, Hawaii Revised Statutes, is
 
11 amended by amending subsection (a) to read as follows:
 
12      "(a)  Those functions identified in paragraphs (1) and (2)
 
13 insofar as they relate to the permit application, review,
 
14 processing, issuance, and monitoring of laws, and rules and to
 
15 the enforcement of terms, conditions, and stipulations of permits
 
16 and other authorizations issued by agencies with respect to the
 
17 development, construction, installation, operation, maintenance,
 
18 repair, and replacement of the project, or any portion or
 
19 portions thereof, are transferred to the department.  With
 
20 respect to each of the statutory authorities cited in paragraphs
 
21 (1) and (2), the transferred functions include all enforcement
 
22 functions of the agencies or their officials under the statute
 
23 cited as may be related to the enforcement of the terms,
 

 
Page 46                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1 conditions, and stipulations of permits, including but not
 
 2 limited to the specific sections of the statute cited.
 
 3 "Enforcement", for purposes of this transfer of functions,
 
 4 includes monitoring and any other compliance or oversight
 
 5 activities reasonably related to the enforcement process.  These
 
 6 transferred functions include:
 
 7      (1)  [Such] The functions of the [land use] state planning
 
 8           commission related to[:  district boundary amendments
 
 9           as set forth in section 205-3.1 et seq.; and] changes
 
10           in zoning as set forth in section 205-5; and
 
11      (2)  The permit approval and enforcement functions of the
 
12           director of transportation or other appropriate
 
13           official or entity in the department of transportation
 
14           related to permits or approvals issued for the use of
 
15           or commercial activities in or affecting the ocean
 
16           waters and shores of the State under chapter 266."
 
17      SECTION 18.  Section 205-5.1, Hawaii Revised Statutes, is
 
18 amended by amending subsection (c) to read as follows:
 
19      "(c)  The use of an area for geothermal development
 
20 activities within a geothermal resource subzone shall be governed
 
21 by the board within the conservation district and, except as
 
22 herein provided, by state and county statutes, ordinances, and
 
23 rules not inconsistent herewith within agricultural, rural, and
 

 
Page 47                                                    
                                     S.B. NO.           740
                                                        
                                                        

 
 1 urban districts, except that no [land use] state planning
 
 2 commission approval [or special use permit procedures under
 
 3 section 205-6] shall be required for the use of [such] these
 
 4 subzones.  In the absence of provisions in the county general
 
 5 plan and zoning ordinances specifically relating to the use and
 
 6 location of geothermal development activities in an agricultural,
 
 7 rural, or urban district, the appropriate county authority may
 
 8 issue a geothermal resource permit to allow geothermal
 
 9 development activities.  "Appropriate county authority" means the
 
10 county planning commission unless some other agency or body is
 
11 designated by ordinance of the county council.  Such uses as are
 
12 permitted by county general plan and zoning ordinances, by the
 
13 appropriate county authority, shall be deemed to be reasonable
 
14 and to promote the effectiveness and objectives of this chapter.
 
15 Chapters [177, 178,] 182, 183, 183C, 205A, 226, [342,] and 343
 
16 shall apply as appropriate.  If provisions in the county general
 
17 plan and zoning ordinances specifically relate to the use and
 
18 location of geothermal development activities in an agricultural,
 
19 rural, or urban district, the provisions shall require the
 
20 appropriate county authority to conduct a public hearing on any
 
21 application for a geothermal resource permit to determine whether
 
22 the use is in conformity with the criteria specified in
 
23 subsection (e) for granting geothermal resource permits; provided
 

 
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 1 that within the urban, rural, and agricultural land use
 
 2 districts, direct use applications of geothermal resources are
 
 3 permitted without any application for a geothermal resource
 
 4 permit both within and outside of areas designated as geothermal
 
 5 resource subzones pursuant to section 205-5.2 if [such] the
 
 6 direct use applications are in conformance with all other
 
 7 applicable state and county land use [regulations] rules and are
 
 8 in conformance with this chapter."
 
 9                              PART V.
 
10      SECTION 19.  The legislature finds that article XI,
 
11 section 3 of the state constitution mandates the State to
 
12 conserve and protect agricultural lands, promote diversified
 
13 agriculture, increase agricultural self-sufficiency, and assure
 
14 the availability of agriculturally suitable lands.  Section 3
 
15 also requires the legislature to provide standards and criteria
 
16 to accomplish these objectives.  Furthermore, any
 
17 reclassification or rezoning of lands identified by the State as
 
18 important agricultural lands must meet the standards and criteria
 
19 established by the legislature, and must be approved by two-
 
20 thirds of the membership of the decision-making body responsible
 
21 for the reclassification or rezoning action.
 
22      It is the intent of this part to fulfill the state
 
23 constitutional mandate to establish criteria and standards to
 

 
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 1 meet the State's agricultural objectives.  This shall be
 
 2 accomplished through the establishment of a temporary commission
 
 3 authorized to develop principles, criteria, and standards to meet
 
 4 the State's agricultural land use policy for important
 
 5 agricultural lands.
 
 6      SECTION 20.  State of Hawaii important agricultural lands
 
 7 commission; established.  (a)  There is established the State of
 
 8 Hawaii important agricultural lands commission to serve for a
 
 9 period of two years.  The commission shall be attached to the
 
10 office of planning for administrative purposes.  The commission
 
11 shall be comprised of fifteen voting members as follows:  the
 
12 chairperson of the board of agriculture, the planning directors
 
13 of each of the four counties, the director of the agricultural
 
14 development corporation, the chairperson of the board of land and
 
15 natural resources, and the director of the office of planning, or
 
16 their designated representatives; and seven members appointed by
 
17 the governor.  Of the seven members appointed by the governor,
 
18 two shall be appointed from a list of five persons nominated by
 
19 the president of the senate and two shall be appointed from a
 
20 list of five persons nominated by the speaker of the house of
 
21 representatives.  The appointed members shall include
 
22 representatives from state and federal agricultural research and
 
23 service agencies, small and large farmers, landowners,
 

 
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 1 agricultural workers, environmental organizations, and native
 
 2 Hawaiian organizations, as well as the general public; provided
 
 3 that the native Hawaiian member shall be appointed from a list of
 
 4 five persons submitted by the office of Hawaiian affairs.  At
 
 5 least one appointed member shall be from each county.  The
 
 6 director of the office of planning shall be the chairperson of
 
 7 the commission.  Any vacancy on the commission shall be filled in
 
 8 the same manner in which the original position was filled.  The
 
 9 members shall receive no compensation for their services, but
 
10 shall be reimbursed for actual expenses incurred in the
 
11 performance of their duties.
 
12      (b)  The commission shall develop a set of criteria,
 
13 standards, and procedures (1) for the designation of important
 
14 agricultural lands to the State; and (2) to guide land use
 
15 decision-making involving designated important agricultural
 
16 lands, to further the objectives of article XI, section 3, of the
 
17 state constitution.  The criteria, standards, and procedures
 
18 shall be formulated to provide a coherent, long-range state
 
19 agricultural land use policy, that will enable and promote the
 
20 expansion of agriculture's role in Hawaii's economic future and
 
21 the conservation of agricultural lands as an economic, physical,
 
22 and sociocultural resource for present and future generations of
 
23 residents and visitors.
 

 
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 1      The commission shall develop and recommend criteria and
 
 2 standards for review and adoption in the regular session of 2000.
 
 3 The commission shall identify and adopt maps designating the
 
 4 important agricultural lands to the State on or before June 30,
 
 5 2001; provided that the commission shall use the criteria,
 
 6 standards, and process for identifying important agricultural
 
 7 lands adopted by the 2000 regular session of the legislature, and
 
 8 that the adoption of maps designating important agricultural
 
 9 lands shall be conducted through public notice and hearings in
 
10 accordance with chapter 92, Hawaii Revised Statutes.
 
11      (c)  The commission may undertake any necessary studies to
 
12 carry out its functions and may enter into contracts with
 
13 qualified persons or any government agency on terms as it may
 
14 deem appropriate.  The commission shall receive administrative
 
15 support from the office of planning.  All state and county
 
16 agencies shall render services upon request of the commission
 
17 through its chairperson to facilitate the purposes of this
 
18 section.
 
19      (d)  The commission shall invite the participation of the
 
20 general public, particularly persons having an interest in
 
21 agricultural lands and agricultural development in the State.
 
22 Public information meetings and hearings shall be held as
 
23 frequently as deemed necessary and feasible; provided that at
 

 
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 1 least one hearing, which shall be conducted subject to chapter
 
 2 92, Hawaii Revised Statutes, shall be held in each county prior
 
 3 to the submission of reports required under this section.
 
 4      (e)  In the formulation of its recommendations, the
 
 5 commission shall take into consideration existing data and
 
 6 findings of previous classification studies, including the State
 
 7 of Hawaii land evaluation and site assessment commission reports
 
 8 and maps, the agricultural lands of importance to the State of
 
 9 Hawaii system, and the land study bureau's detailed land
 
10 classification system.
 
11      (f)  The proposed criteria and standards for the designation
 
12 and reclassification of important agricultural lands shall
 
13 include quantitative and qualitative factors that consider, at a
 
14 minimum:
 
15      (1)  Land evaluation.  The capability of land for
 
16           sustainable production based on  (A) the overall
 
17           quality of the physical properties of the land, to
 
18           include but not be limited to soil characteristics,
 
19           moisture supply, temperature, humidity, sunlight, air
 
20           drainage, elevation, slope, etc.; and (B) the
 
21           availability of water for irrigation or the potential
 
22           for irrigation system development; and
 
23      (2)  Land use assessment.  The compatibility and
 

 
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 1           desirability of agricultural use with respect to
 
 2           long-range land use policy objectives, including:
 
 3           importance to state agricultural development objectives
 
 4           and programs; compatibility with county long-range land
 
 5           use policies as expressed in county general and
 
 6           community or development plans; existing and planned
 
 7           development capacity to accommodate non-agricultural
 
 8           needs; existing and planned infrastructure and service
 
 9           capacity; short- and long-term existing and emerging
 
10           local and export markets for agricultural commodities
 
11           and products, including value-added agricultural
 
12           opportunities; and compatibility with surrounding uses;
 
13      The commission may further define and add other factors to
 
14 this subsection with at least a two-thirds majority approval of
 
15 the commission.  The commission shall exercise its discretion in
 
16 determining the need for and developing a rating system by which
 
17 these factors are applied; provided that, at a minimum, the
 
18 commission shall develop a clear and replicable methodology for
 
19 applying criteria in the designation of important agricultural
 
20 lands, and collaborative planning procedures for the designation,
 
21 review, and revision of important agricultural lands.
 
22      The commission shall also identify and develop additional
 
23 criteria and standards necessary to provide uniform, statewide
 

 
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 1 policy guidance for the planning and regulation of the use and
 
 2 management of important agricultural lands, and provide
 
 3 recommendations for the adoption of important agricultural land
 
 4 use standards by statute or rule-making.
 
 5      (g)  Prior to the convening of the regular session of 2000,
 
 6 the commission shall submit a report of its findings and
 
 7 recommendations to the legislature.  The report shall include,
 
 8 but not be limited to recommended attributes, criteria,
 
 9 standards, and methodology for a system to identify important
 
10 agricultural lands to the State, including preliminary maps
 
11 demonstrating the application of the proposed criteria and
 
12 standards.
 
13      (h)  Prior to the convening of the regular session of 2001,
 
14 the commission shall submit to the legislature a report of its
 
15 findings and recommendations.  The report shall include, but not
 
16 be limited to:
 
17      (1)  The status of the commission's important agricultural
 
18           lands designation process, including preliminary maps
 
19           and other supporting documents identifying potential
 
20           lands for designation as important agricultural lands
 
21           by the commission on or before June 30, 2001; and
 
22      (2)  Legislative proposals to amend existing statutory
 
23           provisions to establish the objectives, criteria, and
 

 
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 1           standards for a state agricultural land use policy
 
 2           adopted pursuant to this section.
 
 3      Upon the legislature's adjournment sine die of the regular
 
 4 session of 2001, the commission shall cease to exist.
 
 5                             PART VI.
 
 6      SECTION 21.  The Hawaii Revised Statutes is amended by
 
 7 substituting the phrase "state planning commission", or like
 
 8 terms, wherever the phrase "land use commission", "state land use
 
 9 commission", or like terms appear, as the context requires.
 
10      SECTION 22.  In codifying the new sections contained in
 
11 section 2, and referred to in other sections of this Act, the
 
12 revisor of statutes shall substitute the appropriate section
 
13 numbers for the letters used in designating new sections in this
 
14 Act.
 
15      SECTION 23.  This Act shall not affect rights and duties
 
16 that matured, penalties that were incurred, and proceedings that
 
17 were begun, prior to its effective date.
 
18      SECTION 24.  Statutory material to be repealed is bracketed.
 
19 New statutory material is underscored.
 
20      SECTION 25.  This Act shall take effect upon its approval.
 
21 
 
22                           INTRODUCED BY:  _______________________