HB 871 Summary

• Establishes a new Agricultural Enterprises chapter in Hawaii Revised Statutes authorizing the department of agriculture to plan, design, construct, operate, and maintain infrastructure on lands under its jurisdiction to support agriculture.

• Creates an agricultural enterprise program separate from existing agricultural park programs, allowing the department to accept land transfers from the department of land and natural resources and manage them under distinct rules adopted by the board of agriculture.

• Establishes an agricultural enterprise special fund to be administered by the department, funded by legislative appropriations and all lease rents, fees, and revenue collected from agricultural enterprise lands and operations.

• Permits the department or its lessees to lease agricultural enterprise lands through negotiation, drawing of lots, or public auction, with lease terms between 15 and 65 years, subject to restrictions protecting productive agricultural lands and requiring lessees to derive major income from agricultural activities on the premises.

• Provides institutional lenders holding security interests in agricultural enterprise leases with specified protections, including rights to obtain new leases if existing leases are canceled and limitations on rent increases and land withdrawals during loan default periods; effective January 1, 2050.