THE SENATE	S.B. NO.	651
THIRTIETH LEGISLATURE, 2019
STATE OF HAWAII

A BILL FOR AN ACT

relating to agriculture.

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

SECTION 1. The legislature finds that the department of agriculture's non-agricultural park lands program supports new and bona fide farmers, among others, who are generally farmers engaged in diversified agriculture on smaller parcels, in gaining a foothold in the agricultural industry. The legislature further finds that technological advances have created opportunities for innovation in agriculture that may improve efficiency, increase yields, and encourage sustainable farming practices. However, these technologies often require high investments of capital that farmers are often unable to access alone. By partnering with investors or establishing partnerships with others who have access to capital, farmers may be able to invest in these technologies and other capital necessary to establish and grow their businesses.

The legislature finds that the department of agriculture's administrative rules on the non-agricultural park lands program require bona fide farmers to be: individuals who meet certain qualifications; agricultural cooperatives or other agricultural associations or partnerships, at least seventy-five per cent of the members of which would qualify individually as bona fide farmers; or corporations incorporated primarily for agricultural production purposes where at least seventy-five per cent of its trustees, officers, stockholders, and members qualify individually, excluding a holder of record having a security interest. In addition, the legislature finds that there may be some confusion regarding qualifications for bona fide farmers; specifically, a durational Hawaii residency requirement may apply to bona fide farmers, despite the fact that chapter 166E, Hawaii Revised Statutes, relating to non-agricultural park lands, does not include such a requirement. The legislature believes that the law should more clearly specify the qualifications of bona fide farmers and broaden the types of entities that may qualify as bona fide farmers for purposes of the non-agricultural park lands program.

The purpose of this Act is to expand opportunities for farmers to obtain investment capital for their operations on non-agricultural park lands by:

(1) Inserting a definition of "bona fide farmer" that applies to the non-agricultural park lands program; and

(2) Exempting individual members, trustees, officers, and stockholders of certain entities from the required individual qualifications of a "bona fide farmer".

SECTION 2. Section 166E-2, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Bona fide farmer" means a person who:

(1) Was an owner-operator of an established farm conducting a substantial farming operation and for a substantial period of the person's life resided on a farm or depended on farm income for livelihood;

(2) Has at least two years experience as a full-time farmer or four years experience as a part-time farmer and who, in the administrator's judgment, is likely to successfully operate a farm by reason of ability, experience, and training as a vocational trainee;

(3) Has qualified for and received a commitment for a loan under the Bankhead-Jones Farm Tenant Act, as amended, or as may hereafter be amended, for the acquisition of a farm; or

(4) Is a member of the Hawaii Young Farmer Association or the National FFA Organization graduate with two years of training with farming projects.

"Bona fide farmer" includes agricultural cooperatives organized under chapter 421 and other agricultural associations or partnerships; corporations incorporated primarily for agricultural production purposes, excluding a holder of record having a security interest; and beekeepers and qualified aquaculturists, as defined in section 219-2; provided that individual members of agricultural cooperatives organized under chapter 421 and other agricultural associations or partnerships, and trustees, officers, stockholders, or members of corporations incorporated primarily for agricultural production purposes, excluding a holder of record having a security interest, do not need to qualify individually as bona fide farmers."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2019.

INTRODUCED BY:

_____________________________

Report Title:

Non-agricultural Park Lands Program; Bona Fide Farmer; Qualifications

Description:

Inserts a definition for "bona fide farmer" that applies to the non-agricultural park lands program. Exempts individual members, trustees, officers, and stockholders of certain entities from the required individual qualifications of a "bona fide farmer".

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