SB2068 SD1

PART I

SECTION 1. The legislature finds that Act 90, Session Laws of Hawaii 2003 (Act 90), was enacted to ensure the long-term, productive use of public lands leased, or available to be leased, for agricultural purposes by transferring certain non-agricultural park lands from the department of land and natural resources to the department of agriculture. While a small percentage of those lands have been transferred over the last eighteen years, many lands have not been transferred to the department of agriculture.

Now, more than ever, the public and Hawaii leadership recognize the importance of greater food self-sufficiency and the need to encourage agricultural activity and to diversify the economy. The Hawaii State Constitution, Hawaii State Plan, New Day Plan, Hawaii Comprehensive Economic Development Strategy, and other state policy documents all support increasing Hawaii's food self-sufficiency.

The legislature further finds that article XI, section 10, of the Hawaii State Constitution, establishes that "[t]he public lands shall be used for the development of farm and homeownership on as a widespread a basis as possible, in accordance with procedures and limitations prescribed by law."

The final report from the Act 90 working group, established by Act 139, Session Laws of Hawaii 2021, finds that lands under the department of land and natural resources used for the primary and substantial management objective of agricultural production should be transferred to the department of agriculture.

The Act 90 working group final report additionally finds that improved collaborative working relationships between the department of land and natural resources, the department of agriculture, and lessees of multi-use agricultural lands will facilitate the management or co-management of department of land and natural resources multi-use parcels to benefit public values, including food production, conservation, and natural resource management.

The legislature also finds that agricultural activities and natural resource management are not mutually exclusive. The department of land and natural resources continues to regulate and manage natural resources statewide, such as dam safety, invasive species control, and hunting access, regardless of where these needs or threats are found. Both the department of agriculture and the department of land and natural resources collaborate to address management needs.

Therefore, the legislature finally finds that certain public lands classified for agricultural use, including pasture use, by the department of land and natural resources should be transferred to the department of agriculture for the purposes and in a manner consistent with article XI, section 10, of the Hawaii State Constitution. Both the department of land and natural resources and the department of agriculture will continue to collaborate on access easements and other natural resource conservation activity needs of the department of land and natural resources on the transferred lands.

PART II

SECTION 2. The purpose of this part is to facilitate the transfer of certain non-agricultural park lands from the department of land and natural resources to the department of agriculture, including pasture leases, pursuant to Act 90, Session Laws of Hawaii 2003, and chapter 166E, Hawaii Revised Statutes, regarding non-agricultural park lands, by:

(1) Repealing the requirements that transfers of certain public lands classified for agricultural use by the department of land and natural resources shall receive approval of the board of land and natural resources and the board of agriculture prior to transfer to the department of agriculture;

(2) Requiring the department of agriculture to accept the transfer of and manage certain qualifying non-conservation, non-agricultural park lands, including pasture leases; and

(3) Requiring the department of agriculture, prior to offering a lease, to inquire with the department of land and natural resources regarding any necessary and reasonable easements required for the department of land and natural resources to access its landlocked forest reserves or other department of land and natural resources assets on the lands subject to the lease.

SECTION 3. Section 166E-1, Hawaii Revised Statutes, is amended to read as follows:

"[[]§166E-1[]] Legislative findings. The legislature finds that article XI, section 10, of the Hawaii State Constitution establishes that "the public lands shall be used for the development of farm and homeownership on as widespread a basis as possible, in accordance with procedures and limitations prescribed by law".

Therefore, the legislature finds that certain public lands classified for agricultural use, including all lands designated as intensive agricultural use, special livestock use, and pasture use under paragraphs (1) to (3) of section 171-10, by the department of land and natural resources should be transferred to the department of agriculture[~~, with the approval of the board of land and natural resources and the board of agriculture,~~] for purposes and in a manner consistent with article XI, section 10, of the [~~state constitution.~~] Hawaii State Constitution.

The purpose of this chapter is to ensure the long-term productive use of public lands leased or available to be leased by the department of land and natural resources for agricultural purposes, including pasture use, by allowing these lands to be transferred to and managed by the department of agriculture."

SECTION 4. Section 166E-3, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) Upon [~~mutual agreement and~~] approval of the board [~~and the board of land and natural resources~~]:

(1) The department [~~may~~] shall accept the transfer of and manage encumbered [~~certain qualifying~~] non-agricultural park lands[;] subject to the suitability of the land for agricultural activities and use, as determined by the board; [~~and~~]

(2) Certain assets, including position counts, related to the management of existing encumbered and unencumbered non-agricultural park lands and related facilities shall be transferred to the department[.]; and

(3) Provided that designated conservation lands not in current agricultural use shall remain under the jurisdiction of the department of land and natural resources.

(b) The department shall administer a program to manage the transferred non-agricultural park lands under rules adopted by the board pursuant to chapter 91. The program and its rules shall be separate and distinct from the agricultural park program and its rules. Non-agricultural park lands are not the same as, and shall not be selected or managed as [~~are~~], lands under agricultural park leases. Prior to offering a lease, the department shall inquire with the department of land and natural resources regarding any easements required by the department of land and natural resources to access landlocked forest reserves or other assets of the department of land and natural resources on the lands subject to the lease. Notwithstanding any other law to the contrary, the program shall include the following conditions pertaining to encumbered non-agricultural park lands:

(1) The lessee or permittee shall perform in full compliance with the existing lease or permit;

(2) The lessee or permittee shall not be in arrears in the payment of taxes, rents, or other obligations owed to the State or any county;

(3) The lessee's or permittee's agricultural operation shall be economically viable as specified by the board; and

(4) No encumbered or unencumbered non-agricultural park lands with soils classified by the land study bureau's detailed land classification as overall (master) productivity rating class A or B shall be transferred for the use or development of golf courses, golf driving ranges, and country clubs.

The transfer of non-agricultural park lands shall be done in a manner to be determined by the board of agriculture."

PART III

SECTION 5. The purpose of this part is to balance the State's commitment to agriculture as a priority and the State's dedication to land and stewardship and reforestation by requiring approval by the board of land and natural resources and the board of agriculture prior to removal of pasture lands for reforestation or other public purposes.

SECTION 6. The department of land and natural resources shall seek approval from the board of land and natural resources and the board of agriculture prior to the removal of any land designated for pasture leases for reforestation or other public purposes. If withdrawal is approved by both boards, adequate notice of not less than one year to the then-current lessee or permittee shall be provided.

The division of forestry and wildlife shall submit a realistic and funded action plan for reforestation purposes on current pasture lease lands to the board of land and natural resources for approval.

PART IV

SECTION 7. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect upon its approval.

THE SENATE	S.B. NO.	2068
THIRTY-FIRST LEGISLATURE, 2022		S.D. 1
STATE OF HAWAII