SB226 SD1

SECTION 1. The legislature finds that Hawaii's agricultural production is insufficient to meet the State's food consumption needs. The State's overreliance on imported food raises critical concerns about the State's safety, security, and sustainable future. The legislature recognizes that pursuant to article XI, section 3, of the Hawaii State Constitution, it is the State's responsibility to "conserve and protect agricultural lands, promote diversified agriculture, increase agricultural self-sufficiency and assure the availability of agriculturally suitable lands."

The legislature further finds that Act 55, Session Laws of Hawaii 2013, amended the Hawaii State Planning Act to encourage economically competitive activities that expand the State's agricultural self-sufficiency and local food production.

The legislature also recognizes that the State is facing a critical shortage of safe and sanitary housing for Hawaii residents, including affordable and workforce housing. The lack of suitable entitled lands for the development of appropriate housing is a major contributing factor to the housing crisis. Substantial obstacles and delays in entitling lands result in slower development, lower inventory, and higher housing prices.

The legislature finds that the exchange of state lands for privately owned lands can help address both the challenges of agricultural self-sufficiency and the State's housing crisis. Land exchanges are an opportunity for the State to negotiate the mutually beneficial exchange of state lands suitable for housing development and privately-owned agricultural lands suitable for farming.

Accordingly, the purpose of this Act is to:

(1) Allow the governor to negotiate land exchanges to acquire lands suitable for long-term diversified agricultural production in return for state lands to be developed for affordable, workforce, and other housing; and

(2) Require the governor to report to the legislature any potential or negotiated land exchanges for final legislative approval.

SECTION 2. Chapter 171, Hawaii Revised Statutes, is amended by adding a new section to subpart C of part II to be appropriately designated and to read as follows:

"§171- Land exchanges; negotiation. (a) The governor may negotiate land exchanges, in accordance with this chapter, for the purpose of acquiring private lands that are suitable for long-term diversified agricultural production by the State or its lessees, in exchange for state lands to be acquired by private parties for the development of affordable, workforce, and other housing for Hawaii residents.

(b) The governor may coordinate with the agribusiness development corporation, the department of land and natural resources, and any other state department or agency that holds title to or an assignment of state land that may be appropriate for exchange under subsection (a).

(c) It is the intent of this section that the exchanges negotiated pursuant to this section will result in exchanges that help to address both the State's agricultural and housing needs by:

(1) Obtaining large tracts of suitable agricultural lands for the State to lease to farmers for diversified agriculture; and

(2) Providing suitable urban lands to private parties for expeditious development of affordable housing, workforce housing, and other housing for Hawaii residents, and mixed-use commercial and accessory uses within areas designated for transit-oriented development and other appropriate urbanized areas.

(d) To facilitate successful negotiation of land exchanges, including the enhancement of optimal agricultural lands acquired by the State in exchange for urbanized land and the expedient execution of these exchanges, the governor, pursuant to subsection (e)(3), may reclassify and rezone lands intended for exchange under this section and transfer authorized state lands to private parties for the development of housing and other mixed-uses within the state urban land use district, with appropriate county residential or mixed-use zoning; provided that:

(1) The lands shall be within one-half mile radius of any rail transit station approved by the Federal Transit Administration within a county with a population greater than five hundred thousand; and

(2) Any development on the lands to be transferred to private parties shall be in compliance with all state and county laws, rules, and regulations regarding health and safety and building permit requirements for housing or mixed-use developments on private lands, and not subject to laws, rules, and regulations applicable to state lands.

(e) To promote exchanges made pursuant to subsection (a) that address the objectives of the State in acquiring more lands for diversified agriculture and to encourage private parties to develop more affordable workforce and other housing:

(1) Appraisals of state lands for purposes of exchange with urban, residential, or mixed-use land shall be performed in compliance with section 171-50; provided that appraisals shall reflect any land use and zoning classifications adopted pursuant to this section;

(2) The development of housing on private lands pursuant to this section shall be subject to chapters 6E and 343, as applicable to private housing on private lands; notwithstanding the prior state ownership of the land or the use of state or county housing assistance programs;

(3) The governor may submit notifications and supporting information, as necessary for the purposes of this section, to the land use commission and the planning director for the appropriate county for any necessary reclassification and rezoning of land; provided that the reclassification and rezoning shall be adopted within thirty days of receipt of the governor's notification;

(4) Private development of housing or mixed-uses on private lands initiated pursuant to this section shall be exempt from all applicable state and county procurement requirements, impact fees, and other exactions; and

(5) The governor and all related state and county agencies shall take further actions as may be necessary to effectuate the purposes of this section.

(f) No later than twenty days prior to the convening of the regular session of 2023 and no later than twenty days prior to the convening of each regular session thereafter, the governor shall submit a report to the legislature on:

(1) The feasibility of any land exchanges negotiated by the governor pursuant to this section, a list of lands suitable for exchange, and a description and market value of the parcels; and

(2) Any appropriations, proposed legislation, or administrative actions necessary to accomplish the goals of this section.

(g) After receipt of the governor's report, the legislature, if needed, may convene a special session pursuant to article III, section 10, of the Hawaii State Constitution to consider for final approval any land exchanges proposed pursuant to this section."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2050.

THE SENATE	S.B. NO.	226
THIRTY-FIRST LEGISLATURE, 2021		S.D. 1
STATE OF HAWAII