HB1341.DOC

SECTION 1. The legislature finds that article XI, section 3, of the Hawaii state constitution requires the State to conserve and protect agricultural lands, promote diversified agriculture, increase agricultural self-sufficiency, and ensure the future availability of agriculturally suitable lands. The constitution directed the legislature to develop standards and criteria to protect important agricultural lands.

In 2005, the legislature enacted Act 183, Session Laws of Hawaii 2005, to implement the provisions of article XI, section 3, of the state constitution. Act 183:

(1) Established part III in chapter 205, Hawaii Revised Statutes, that set forth policies and procedures for the identification of important agricultural lands, including:

(A) Policies to assure the conservation and availability of important agricultural lands for long-term agricultural use;

(B) Standards and criteria for the identification of important agricultural lands;

(D) Standards and criteria for the reclassification and rezoning of lands identified as important agricultural lands; and

(E) Policies for incentives for the long-term retention of important agricultural lands for agricultural use; and

(2) Provided for a process to develop proposals for state and county incentives to promote agricultural viability, sustained growth of the agriculture industry, and the long-term use and protection of important agricultural lands for agricultural use.

The purpose of this Act is to continue to promote agricultural vitality by encouraging landowners to allow their lands that meet the criteria of important agricultural lands to be designated as important agricultural land by allowing for the transfer of development rights from the lands designated as important agricultural lands to other lands.

SECTION 2. Chapter 46, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART . TRANSFER OF DEVELOPMENT RIGHTS

FOR IMPORTANT AGRICULTURAL LANDS

§46- Definitions. As used in this part, unless the context requires otherwise:

"Development rights" means the rights permitted under an ordinance or law relating to permitted uses of a property, the density or intensity of use, and the maximum height and size of improvements thereon. Development rights may be calculated and allocated using factors including but not limited to area or lot size, floor area, floor area ratios, density, height limitations, or any other criteria that will effectively quantify the value for the development right in a reasonable and uniform manner that will carry out the objectives of this part.

"Receiving district" means one or more designated districts or areas of land to which development rights from one or more important agricultural land sending districts may be transferred and in which increased development is permitted using transferred development rights.

"Sending district" means one or more designated important agricultural land districts in which development rights may be designated for use on one or more receiving districts.

"Transfer of development rights" means the process by which development rights are transferred from a property in any sending district to another property in a receiving district.

§46- General authorization. Any county council may provide for the transfer of development rights from important agricultural lands by adopting an ordinance establishing a procedure for the transfer of development rights from important agricultural lands. The ordinance shall provide:

(1) For the transfer of development rights only from lands designated as important agricultural lands pursuant to part III, chapter 205;

(2) That the transfer of development rights, and the designation of sending and receiving districts be established within the framework of the long-range, comprehensive general plan of the county;

(3) That the receiving district, to which transfer of development rights is authorized, shall be found by the county council, after evaluating the effects of the potential increased development, to contain adequate resources and public facilities so that the increased development will be compatible with the development otherwise permitted by the county;

(4) That sending and receiving districts be designated and mapped, and that the procedure for the transfer of development rights be specified; and

(5) That development rights may be sold in the normal market or through a development rights bank established by the county in which development rights may be retained and sold by the county.

§46- Transfer of development rights instruments. The county shall establish a standard instrument to document development rights that have been transferred from important agricultural lands. A development right that is transferred is an interest in real property evidenced by the transfer of development right instrument issued by the county and recorded pursuant to section 502-31."

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1341
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII