HB966 HD2

PART I

SECTION 1. The legislature finds that, throughout the nation, cattle ranches, agricultural farms, and other farming operations are diversifying their businesses by expanding into agricultural tourism activities. These activities provide critical supplemental revenue streams and are increasingly becoming an essential part of the business models for many ranches and farms.

The legislature further finds that the State's four counties each have their own agricultural tourism activity permitting processes, standards, procedures, and definitions. This lack of consistency results in a disjointed regulatory framework, which impedes the growth of the State's agricultural sector, inhibits the development of viable farming and ranching business models, and systemically creates and aggravates impediments in zoning and permitting.

The legislature acknowledges that, currently, agricultural tourism activities may be authorized through the special permitting process. However, the use of this process pushes agricultural tourism activities to the periphery of farming operations and exacerbates the State's inconsistent permitting framework, further impeding growth in the agricultural sector and limiting the revenue potential of the agricultural businesses that the State is trying to nurture.

Therefore, the legislature finds that there should be a uniform approach to approving agricultural tourism activities across the entire State. With the enactment of targeted, meaningful legislation, agricultural tourism can become an area of growth and expansion for farmers while also creating opportunities for the types of regenerative tourism being encouraged by the Hawaii tourism authority. The creation of a uniform framework will increase investment in agricultural tourism activities, promote unique partnerships between farmers and local businesses interested in agriculture, and increase support for affiliated farming pathway programs in the State.

Accordingly, the purpose of this Act is to establish statewide, uniform standards to promote agricultural tourism activities in the State by:

(1) Creating agricultural tourism activity requirements that are applicable to all counties that have adopted an agricultural tourism ordinance;

(2) Requiring agricultural tourism activities to be registered by the county planning department; and

(3) Requiring agricultural tourism activities to coexist with an agricultural activity on a farming operation and providing for the termination of agricultural tourism activities upon the cessation of the agricultural activity, except under certain circumstances.

PART II

SECTION 2. Chapter 205, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§205- Agricultural tourism activities. (a) Agricultural tourism activities may be conducted on a farming operation, as defined in section 165-2, for the enjoyment, education, or involvement of visitors.

(b) Agricultural tourism activities shall:

(1) Be accessory and secondary to the principal agricultural use;

(2) Coexist with an agricultural activity conducted on a farming operation; and

(3) Not interfere with surrounding farm operations.

(c) Agricultural tourism shall only be allowed on land on which productive agricultural use is occurring. For the purposes of this subsection, "productive agricultural use" means the real property of the working farm, or farming operation as defined in section 165-2, is taxed as agricultural and is current on its real property tax obligations.

(d) Agricultural tourism activities shall be registered by the owner or lessee with the county planning department before commencement of any agricultural tourism activity; provided that the registration shall include the following information:

(1) A description of access to the farm, including road width, road surface, and parking;

(2) A description of accessory facilities connected with the farming operation, such as gift shops and restaurants;

(3) Activities for visitors that may be offered by the farming operation;

(4) Documentation that a productive agricultural use is occurring on the farm pursuant to subsection (c);

(5) Federal and state tax returns verifying farm income of the principal farming operation;

(6) Verification of enrollment in a county agricultural use dedication program; and

(7) Verification of county agricultural water rates if enrolled.

(e) The authorization to conduct agricultural tourism activities at the farming operation shall be automatically terminated upon the cessation of the agricultural activity conducted on the farming operation, unless the cessation of the agricultural activity is temporary and due to inclement weather, disease or pest infestation, market and supply chain disruptions, or change in crop type."

SECTION 3. Section 205-2, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) Agricultural districts shall include:

(1) Activities or uses as characterized by the cultivation of crops, crops for bioenergy, orchards, forage, and forestry;

(2) Farming activities or uses related to animal husbandry and game and fish propagation;

(3) Aquaculture, which means the production of aquatic plant and animal life within ponds and other bodies of water;

(4) Wind-generated energy production for public, private, and commercial use;

(5) Biofuel production, as described in section [~~205‑4.5(a)(16),~~] 205‑4.5(a)(15), for public, private, and commercial use;

(6) Solar energy facilities; provided that:

(A) This paragraph shall apply only to land with soil classified by the land study bureau's detailed land classification as overall (master) productivity rating class B, C, D, or E; and

(B) Solar energy facilities placed within land with soil classified as overall productivity rating class B or C shall not occupy more than ten per cent of the acreage of the parcel, or twenty acres of land, whichever is lesser, unless a special use permit is granted pursuant to section 205-6;

(7) Bona fide agricultural services and uses that support the agricultural activities of the fee or leasehold owner of the property and accessory to any of the above activities, regardless of whether conducted on the same premises as the agricultural activities to which they are accessory, including farm dwellings as defined in section 205-4.5(a)(4), employee housing, farm buildings, mills, storage facilities, processing facilities, photovoltaic, biogas, and other small‑scale renewable energy systems producing energy solely for use in the agricultural activities of the fee or leasehold owner of the property, agricultural‑energy facilities as defined in [~~section 205‑4.5(a)(17),~~] section 205‑4.5(a)(16), vehicle and equipment storage areas, and plantation community subdivisions as defined in section 205_‑4.5(a)(12);

(8) Wind machines and wind farms;

(9) Small-scale meteorological, air quality, noise, and other scientific and environmental data collection and monitoring facilities occupying less than one-half acre of land; provided that these facilities shall not be used as or equipped for use as living quarters or dwellings;

(10) Agricultural parks;

(11) Agricultural tourism [conducted on a working farm, or a farming operation as defined in section 165-2, for the enjoyment, education, or involvement of visitors; provided that the agricultural tourism activity is accessory and secondary to the principal agricultural use and does not interfere with surrounding farm operations; and provided further that this paragraph shall apply only to a county that has adopted ordinances regulating agricultural tourism under section 205-5;] activities pursuant to section 205- ; provided that this paragraph shall apply only to a county that has adopted ordinances regulating agricultural tourism uses and activities under section 205-5;

[~~(12)~~ Agricultural tourism activities, including overnight accommodations of twenty-one days or less, for any one stay within a county; provided that this paragraph shall apply only to a county that includes at least three islands and has adopted ordinances regulating agricultural tourism activities pursuant to section 205-5; provided further that the agricultural tourism activities coexist with a bona fide agricultural activity. For the purposes of this paragraph, "bona fide agricultural activity" means a farming operation as defined in section 165-2;

~~(13)~~] (12) Open area recreational facilities;

[~~(14)~~] (13) Geothermal resources exploration and geothermal resources development, as defined under section 182-1;

[~~(15)~~] (14) Agricultural-based commercial operations registered in Hawaii, including:

(A) A roadside stand that is not an enclosed structure, owned and operated by a producer for the display and sale of agricultural products grown in Hawaii and value-added products that were produced using agricultural products grown in Hawaii;

(B) Retail activities in an enclosed structure owned and operated by a producer for the display and sale of agricultural products grown in Hawaii, value-added products that were produced using agricultural products grown in Hawaii, logo items related to the producer's agricultural operations, and other food items;

(C) A retail food establishment owned and operated by a producer and permitted under chapter 11-50, Hawaii administrative rules, that prepares and serves food at retail using products grown in Hawaii and value-added products that were produced using agricultural products grown in Hawaii;

(D) A farmers' market, which is an outdoor market limited to producers selling agricultural products grown in Hawaii and value-added products that were produced using agricultural products grown in Hawaii; and

(E) A food hub, which is a facility that may contain a commercial kitchen and provides for the storage, processing, distribution, and sale of agricultural products grown in Hawaii and value‑added products that were produced using agricultural products grown in Hawaii.

The owner of an agricultural-based commercial operation shall certify, upon request of an officer or agent charged with enforcement of this chapter under section 205-12, that the agricultural products displayed or sold by the operation meet the requirements of this paragraph;

[~~(16)~~] (15) Hydroelectric facilities as described in section [~~205‑4.5(a)(23);~~] 205‑4.5(a)(22); and

[~~(17)~~] (16) Composting and co-composting operations; provided that operations that process their own green waste and do not require permits from the department of health shall use the finished composting product only on the operation's own premises to minimize the potential spread of invasive species.

Agricultural districts shall not include golf courses and golf driving ranges, except as provided in section 205-4.5(d). Agricultural districts may include areas that are not used for, or that are not suited to, agricultural and ancillary activities by reason of topography, soils, and other related characteristics."

SECTION 4. Section 205-4.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Within the agricultural district, all lands with soil classified by the land study bureau's detailed land classification as overall (master) productivity rating class A or B and for solar energy facilities, class B or C, shall be restricted to the following permitted uses:

(1) Cultivation of crops, including crops for bioenergy, flowers, vegetables, foliage, fruits, forage, and timber;

(2) Game and fish propagation;

(3) Raising of livestock, including poultry, bees, fish, or other animal or aquatic life that are propagated for economic or personal use;

(4) Farm dwellings, employee housing, farm buildings, or activities or uses related to farming and animal husbandry. For the purposes of this paragraph, "farm dwelling" means a single-family dwelling located on and accessory to a farm, including clusters of single‑family farm dwellings permitted within agricultural parks developed by the State, or where agricultural activity provides income to the family occupying the dwelling;

(5) Public institutions and buildings that are necessary for agricultural practices;

(6) Public and private open area types of recreational uses, including day camps, picnic grounds, parks, and riding stables, but not including dragstrips, airports, drive-in theaters, golf courses, golf driving ranges, country clubs, and overnight camps; provided that overnight camps in operation before January 1, 1961, may be approved by special permit;

(7) Public, private, and quasi-public utility lines and roadways, transformer stations, communications equipment buildings, solid waste transfer stations, major water storage tanks, and appurtenant small buildings such as booster pumping stations, but not including offices or yards for equipment, material, vehicle storage, repair or maintenance, treatment plants, corporation yards, or other similar structures;

(8) Retention, restoration, rehabilitation, or improvement of buildings or sites of historic or scenic interest;

(9) Agricultural-based commercial operations as described in section [~~205-2(d)(15);~~] 205-2(d)(14);

(10) Buildings and uses, including mills, storage, and processing facilities, maintenance facilities, photovoltaic, biogas, and other small-scale renewable energy systems producing energy solely for use in the agricultural activities of the fee or leasehold owner of the property, and vehicle and equipment storage areas that are normally considered directly accessory to the above-mentioned uses and are permitted under section 205-2(d);

(11) Agricultural parks;

(12) Plantation community subdivisions, which as used in this chapter means an established subdivision or cluster of employee housing, community buildings, and agricultural support buildings on land currently or formerly owned, leased, or operated by a sugar or pineapple plantation; provided that the existing structures may be used or rehabilitated for use, and new employee housing and agricultural support buildings may be allowed on land within the subdivision as follows:

(A) The employee housing is occupied by employees or former employees of the plantation who have a property interest in the land;

(B) The employee housing units not owned by their occupants shall be rented or leased at affordable rates for agricultural workers; or

(C) The agricultural support buildings shall be rented or leased to agricultural business operators or agricultural support services;

(13) Agricultural tourism [conducted on a working farm, or a farming operation as defined in section 165-2, for the enjoyment, education, or involvement of visitors; provided that the agricultural tourism activity is accessory and secondary to the principal agricultural use and does not interfere with surrounding farm operations; provided further that this paragraph shall apply only to a county that has adopted ordinances regulating agricultural tourism under section 205-5;] activities pursuant to section 205- ; provided that this paragraph shall apply only to a county that has adopted ordinances regulating agricultural tourism uses and activities under section 205-5;

[~~(14)~~ ~~Agricultural tourism activities, including overnight accommodations~~ ~~of twenty-one days or less, for any one stay within a county; provided that~~ this paragraph shall apply only to a county that includes at least three islands and has adopted ordinances regulating agricultural tourism activities pursuant to section 205-5; provided further that the agricultural tourism activities coexist with a bona fide agricultural activity. For the purposes of this paragraph, "bona fide agricultural activity" means a farming operation as defined in section 165-2;

~~(15)~~] (14) Wind energy facilities, including the appurtenances associated with the production and transmission of wind generated energy; provided that the wind energy facilities and appurtenances are compatible with agriculture uses and cause minimal adverse impact on agricultural land;

[~~(16)~~] (15) Biofuel processing facilities, including the appurtenances associated with the production and refining of biofuels that is normally considered directly accessory and secondary to the growing of the energy feedstock; provided that biofuel processing facilities and appurtenances do not adversely impact agricultural land and other agricultural uses in the vicinity.

For the purposes of this paragraph:

"Appurtenances" means operational infrastructure of the appropriate type and scale for economic commercial storage and distribution, and other similar handling of feedstock, fuels, and other products of biofuel processing facilities.

"Biofuel processing facility" means a facility that produces liquid or gaseous fuels from organic sources such as biomass crops, agricultural residues, and oil crops, including palm, canola, soybean, and waste cooking oils; grease; food wastes; and animal residues and wastes that can be used to generate energy;

[~~(17)~~] (16) Agricultural-energy facilities, including appurtenances necessary for an agricultural-energy enterprise; provided that the primary activity of the agricultural-energy enterprise is agricultural activity. To be considered the primary activity of an agricultural-energy enterprise, the total acreage devoted to agricultural activity shall be no less than ninety per cent of the total acreage of the agricultural-energy enterprise. The agricultural‑energy facility shall be limited to lands owned, leased, licensed, or operated by the entity conducting the agricultural activity.

As used in this paragraph:

"Agricultural activity" means any activity described in paragraphs (1) to (3) of this subsection.

"Agricultural-energy enterprise" means an enterprise that integrally incorporates an agricultural activity with an agricultural-energy facility.

"Agricultural-energy facility" means a facility that generates, stores, or distributes renewable energy as defined in section 269-91 or renewable fuel including electrical or thermal energy or liquid or gaseous fuels from products of agricultural activities from agricultural lands located in the State.

"Appurtenances" means operational infrastructure of the appropriate type and scale for the economic commercial generation, storage, distribution, and other similar handling of energy, including equipment, feedstock, fuels, and other products of agricultural‑energy facilities;

[~~(18)~~] (17) Construction and operation of wireless communication antennas, including small wireless facilities; provided that, for the purposes of this paragraph, "wireless communication antenna" means communications equipment that is either freestanding or placed upon or attached to an already existing structure and that transmits and receives electromagnetic radio signals used in the provision of all types of wireless communications services; provided further that "small wireless facilities" shall have the same meaning as in section 206N-2; provided further that nothing in this paragraph shall be construed to permit the construction of any new structure that is not deemed a permitted use under this subsection;

[~~(19)~~] (18) Agricultural education programs conducted on a farming operation as defined in section 165-2, for the education and participation of the general public; provided that the agricultural education programs are accessory and secondary to the principal agricultural use of the parcels or lots on which the agricultural education programs are to occur and do not interfere with surrounding farm operations. For the purposes of this paragraph, "agricultural education programs" means activities or events designed to promote knowledge and understanding of agricultural activities and practices conducted on a farming operation as defined in section 165-2;

[~~(20)~~] (19) Solar energy facilities that do not occupy more than ten per cent of the acreage of the parcel, or twenty acres of land, whichever is lesser or for which a special use permit is granted pursuant to section 205‑6; provided that this use shall not be permitted on lands with soil classified by the land study bureau's detailed land classification as overall (master) productivity rating class A;

[~~(21)~~] (20) Solar energy facilities on lands with soil classified by the land study bureau's detailed land classification as overall (master) productivity rating B or C for which a special use permit is granted pursuant to section 205-6; provided that:

(A) The area occupied by the solar energy facilities is also made available for compatible agricultural activities at a lease rate that is at least fifty per cent below the fair market rent for comparable properties;

(B) Proof of financial security to decommission the facility is provided to the satisfaction of the appropriate county planning commission before the date of commencement of commercial generation; and

(i) Removal of all equipment related to the solar energy facility within twelve months of the conclusion of operation or useful life; and

(ii) Restoration of the disturbed earth to substantially the same physical condition as existed before the development of the solar energy facility.

For the purposes of this paragraph, "agricultural activities" means the activities described in paragraphs (1) to (3);

[~~(22)~~] (21) Geothermal resources exploration and geothermal resources development, as defined under section 182-1;

[~~(23)~~] (22) Hydroelectric facilities, including the appurtenances associated with the production and transmission of hydroelectric energy, subject to section 205-2; provided that the hydroelectric facilities and their appurtenances:

(A) Shall consist of a small hydropower facility as defined by the United States Department of Energy, including:

(i) Impoundment facilities using a dam to store water in a reservoir;

(ii) A diversion or run-of-river facility that channels a portion of a river through a canal or channel; and

(iii) Pumped storage facilities that store energy by pumping water uphill to a reservoir at higher elevation from a reservoir at a lower elevation to be released to turn a turbine to generate electricity;

(B) Comply with the state water code, chapter 174C;

(C) Shall, if over five hundred kilowatts in hydroelectric generating capacity, have the approval of the commission on water resource management, including a new instream flow standard established for any new hydroelectric facility; and

(D) Do not impact or impede the use of agricultural land or the availability of surface or ground water for all uses on all parcels that are served by the ground water sources or streams for which hydroelectric facilities are considered; or

[~~(24)~~] (23) Notwithstanding any other law to the contrary, composting and co-composting operations; provided that operations that process their own green waste and do not require permits from the department of health shall use the finished composting product only on the operation's own premises to minimize the potential spread of invasive species."

SECTION 5. Section 205-5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) [~~Within agricultural districts, uses compatible to the activities described in section 205‑2 as determined by the commission shall be permitted; provided that accessory~~] Accessory agricultural uses and services described in sections 205‑2 and 205‑4.5 may be further defined by each county by zoning ordinance. [Each county shall adopt ordinances setting forth procedures and requirements, including provisions for enforcement, penalties, and administrative oversight, for the review and permitting of agricultural tourism uses and activities as an accessory use on a working farm, or farming operation as defined in section 165‑2. Ordinances shall include but not be limited to:

~~(1)~~ ~~Requirements for access to a farm, including road width, road surface, and parking;~~

~~(2)~~ ~~Requirements and restrictions for accessory facilities connected with the farming operation, including gift shops and restaurants;~~

~~(3)~~ ~~Activities that may be offered by the farming operation for visitors;~~

~~(4)~~ ~~Days and hours of operation; and~~

~~(5)~~ ~~Automatic termination of the accessory use upon the cessation of the farming operation.~~

~~Each county may require an environmental assessment under chapter 343 as a condition to any agricultural tourism use and activity.~~] Other uses may be allowed by special permits issued pursuant to this chapter. The minimum lot size in agricultural districts shall be determined by each county by zoning ordinance, subdivision ordinance, or other lawful means; provided that the minimum lot size for any agricultural use shall not be less than one acre, except as provided herein. If the county finds that unreasonable economic hardship to the owner or lessee of land cannot otherwise be prevented or where land utilization is improved, the county may allow lot sizes of less than the minimum lot size as specified by law for lots created by a consolidation of existing lots within an agricultural district and the resubdivision thereof; provided that the consolidation and resubdivision do not result in an increase in the number of lots over the number existing [~~prior to~~] consolidation; [~~and~~] provided further that in no event shall a lot [~~which~~] that is equal to or exceeds the minimum lot size of one acre be less than [~~that~~] the minimum established after the consolidation and resubdivision action. The county may also allow lot sizes of less than the minimum lot size as specified by law for lots created or used for plantation community subdivisions as defined in section 205‑4.5(a)(12)[,]; for public, private, and quasi-public utility purposes[,]; and for lots resulting from the subdivision of abandoned roadways and railroad easements."

PART III

SECTION 6. Section 141-9, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There [is] shall be established within the department of agriculture an energy feedstock program that shall:

(1) Maintain cognizance of actions taken by industry and by federal, state, county, and private agencies in activities relating to the production of energy feedstock, and promote and support worthwhile energy feedstock production activities in the State;

(2) Serve as an information clearinghouse for energy feedstock production activities;

(3) Coordinate development projects to investigate and solve biological and technical problems involved in raising selected species with commercial energy generating potential;

(4) Actively seek federal funding for energy feedstock production activities;

(5) Undertake activities required to develop and expand the energy feedstock production industry; and

(6) Perform other functions and activities as may be assigned by law, including monitoring the compliance provisions under section [~~205-4.5(a)(16).~~] 205‑4.5(a)(15)."

SECTION 7. Section 141-13, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) For the purposes of this section, "farmers' market" shall have the same meaning as in section [~~205-2(d)(15)(D).~~] 205-2(d)(14)(D)."

SECTION 8. Section 165-2, Hawaii Revised Statutes, is amended by amending the definition of "farming operation" to read as follows:

""Farming operation" means a commercial agricultural, silvicultural, or aquacultural facility or pursuit conducted, in whole or in part, including the care and production of livestock and livestock products, poultry and poultry products, apiary products, and plant and animal production for nonfood uses; the planting, cultivating, harvesting, and processing of crops; and the farming or ranching of any plant or animal species in a controlled salt, brackish, or freshwater environment. "Farming operation" includes but shall not be limited to:

(1) Agricultural-based commercial operations as described in section [~~[205-2(d)(15)];~~] 205-2(d)(14);

(2) Noises, odors, dust, and fumes emanating from a commercial agricultural or an aquacultural facility or pursuit;

(3) Operation of machinery and irrigation pumps;

(4) Ground and aerial seeding and spraying;

(5) The application of chemical fertilizers, conditioners, insecticides, pesticides, and herbicides; and

(6) The employment and use of labor.

A farming operation that conducts processing operations or salt, brackish, or freshwater aquaculture operations on land that is zoned for industrial, commercial, or other nonagricultural use shall not, by reason of that zoning, fall beyond the scope of this definition; provided that those processing operations form an integral part of operations that otherwise meet the requirements of this definition."

SECTION 9. Section 205-2, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Rural districts shall include activities or uses as characterized by low density residential lots of [~~not~~] no more than one dwelling house per one-half acre, except as provided by county ordinance pursuant to section 46-4(c), in areas where "city-like" concentration of people, structures, streets, and urban level of services are absent, and where small farms are intermixed with low density residential lots except that within a subdivision, as defined in section 484-1, the commission for good cause may allow one lot of less than one-half acre, but [~~not~~] no less than eighteen thousand five hundred square feet, or an equivalent residential density, within a rural subdivision and permit the construction of one dwelling on such lot; provided that all other dwellings in the subdivision shall have a minimum lot size of one-half acre or 21,780 square feet. Such petition for variance may be processed under the special permit procedure. These districts may include contiguous areas [~~which~~] that are not suited to low density residential lots or small farms by reason of topography, soils, and other related characteristics. Rural districts shall also include golf courses, golf driving ranges, and golf-related facilities.

In addition to the uses listed in this subsection, rural districts shall include geothermal resources exploration and geothermal resources development, as defined under section 182‑1, and construction and operation of wireless communication antenna, as defined under section [~~205-4.5(a)(18),~~] 205‑4.5(a)(17), as permissible uses."

PART IV

SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 11. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	966
THIRTY-THIRD LEGISLATURE, 2025		H.D. 2
STATE OF HAWAII