STAND. COM. REP. NO. 2123

Honolulu, Hawaii

RE: S.B. No. 2766

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Water and Land, to which was referred S.B. No. 2766 entitled:

"A BILL FOR AN ACT RELATING TO LAND USE,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Office of Planning and Sustainable Development to perform a study to refine rural district policies;

(2) Make recommendations to facilitate the reclassification of lands from the agricultural district to the rural district;

(3) Require a report to the Legislature; and

(4) Appropriate funds.

Your Committee received testimony in support of this measure from the Department of Agriculture and Office of Planning and Sustainable Development. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that marginal agricultural lands in the agricultural land use district are being used for rural lifestyle farms and residences with no farm activity, which increases the cost of land in the agricultural district for bona fide farming operations. The Legislature enacted Act 278, Session Laws of Hawaii 2019, which authorized the Office of Planning and Sustainable Development to conduct a study in consultation with the Department of Planning and Permitting of the City and County of Honolulu, the Real Estate Commission, and the Land Use Commission to utilize rural districts across the State. Distinguishing key differences between rural communities and subsistence farms would allow for greater use of rural districts and better protection of productive agricultural lands.

To enable better protection of productive agricultural lands, this measure requires the Office of Planning and Sustainable Development to perform a study to refine rural district policies and make recommendations to facilitate the reclassification of lands from the agricultural district to the rural district.

Your Committee has amended this measure by:

(1) Inserting a blank appropriation amount; and

(2) Inserting an effective date of July 1, 2050, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Water and Land that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2766, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2766, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water and Land,

________________________________

LORRAINE R. INOUYE, Chair