SB1292

THE SENATE	S.B. NO.	1292
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO LAND USE.

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

SECTION 1. The legislature finds that the State and counties have not made effective use of the state rural land use district, one of four districts established by the state land use law in chapter 205, Hawaii Revised Statutes. Currently, there are 10,454 acres in the rural district, which amount to 0.3 per cent of all lands in the State, and there are no rural district lands on Oahu. 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 further finds that there is potential for greater use of the rural district to differentiate rural communities and lifestyle farms from working or commercial agricultural lands and to enable better protection of productive agricultural lands and the open space character of Hawaii's rural areas. Redefinition and expansion of the rural district would enable better land use management of existing rural settlements and rural centers and residential dwellings engaged in subsistence or lifestyle agriculture, which are not explicitly permitted in the agricultural district.

The office of planning and sustainable development completed a state land use review of districts pursuant to section 205-18, Hawaii Revised Statutes, in January 2022. The review found that the potential for preserving much of Hawaii's open space, rural communities, and working lands may be realized by redefining the policy framework for the rural district and facilitating the reclassification of lands from the agricultural to the rural district to accommodate existing settlements where lifestyle and subsistence farms predominate.

Accordingly, the purpose of this Act is to require the office of planning and sustainable development to perform a study to refine rural district policies, identify strategies for expansion of the rural district, and appropriate funds for the study.

SECTION 2. The office of planning and sustainable development shall perform a study that includes but is not limited to:

(1) An analysis of the rural district policies and standards within the land use law to redefine and increase the effectiveness of the rural district in protecting agricultural working lands;

(2) Research of best practices for rural land use policy and land use regulation in other jurisdictions for consideration in the redefinition of the rural district;

(3) Development of options and identification of areas for expansion of the rural district through the reclassification of areas in the agricultural district to the rural district; and

(4) Development of recommendations for legislation to:

(A) Redefine the rural district policies and standards; and

(B) Facilitate the reclassification of areas in the agricultural district to the rural district.

SECTION 3. In performing the study required by this Act, the office of planning and sustainable development shall coordinate its efforts with the land use commission, the department of agriculture, and the county planning departments. The office of planning and sustainable development shall engage community stakeholders, including farming interests and interested members of the general public, in the development of study recommendations.

SECTION 4. The office of planning and sustainable development shall submit:

(1) An interim report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2025; and

(2) A final report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2026.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $300,000 or so much thereof as may be necessary for fiscal year 2023-2024 for the office of planning and sustainable development to perform the study and complete all required reports pursuant to this Act.

The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 6. This Act, upon its approval, shall take effect on July 1, 2023.

INTRODUCED BY:

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BY REQUEST