S.B. 1248 Summary

• Establishes a new Agricultural Enterprises chapter in Hawaii law authorizing the Department of Agriculture to plan, design, construct, operate, manage, maintain, repair, demolish, and remove infrastructure on lands under its jurisdiction to support agriculture.

• Creates an agricultural enterprise program separate from existing agricultural park and non-agricultural park programs, allowing the department to accept transfer of agricultural enterprise lands from the Department of Land and Natural Resources with mutual board approval.

• Establishes an Agricultural Enterprise Special Fund receiving legislative appropriations and all lease rents, fees, penalties, and revenue from agricultural enterprise lands and enterprises for use in planning, designing, constructing, operating, and maintaining infrastructure.

• Authorizes the board of agriculture to dispose of lands by negotiation, drawing of lots, conversion, or public auction through leases (15-65 year terms) requiring lessees to derive major income from agricultural activities and comply with environmental laws, with restrictions against converting high-productivity soils for golf courses or country clubs.

• Provides special protections for institutional lenders holding security interests in agricultural enterprise leases, including rights to new leases if canceled for non-monetary violations and protections against rent increases or land withdrawals while loans remain outstanding.