§163D-31 to 33 - .
[PARTIII.]Ā IMPORTANT AGRICULTURAL LANDS
Note
 Acquisition of important agricultural lands owned by theGalbraith Estate; department of land and natural resources powers, etc. L2008, c 234, §§8 to 10.
Cross References
 Acquisition of important agricultural lands, see §§163D-31 to33.
Ā Acquisition of resource value lands, see chapter 173A.
 Legacy land conservation commission, see §§173A-2.4 to 2.6.
Law Journals and Reviews
Ā Avoiding the Next Hokuliāa:Ā The Debate over Hawaiāi'sAgricultural Subdivisions.Ā 27 UH L. Rev. 441.
[§205-41] Declaration of policy. It isdeclared that the people of Hawaii have a substantial interest in the healthand sustainability of agriculture as an industry in the State. There is acompelling state interest in conserving the State's agricultural land resourcebase and assuring the long-term availability of agricultural lands foragricultural use to achieve the purposes of:
(1)Ā Conserving and protecting agricultural lands;
(2)Ā Promoting diversified agriculture;
(3)Ā Increasing agricultural self-sufficiency; and
(4)Ā Assuring the availability of agriculturallysuitable lands,
pursuant to article XI, section 3, of the Hawaii state constitution. [L 2005, c 183, pt of §2]
Note
 L 2005, c 183, §§9 and 10 provide:
Ā "SECTION 9.Ā (a)Ā It is the intent of this Act [enactingsections 205-41 to 52 and amending sections 205-3.1, 4, 6, and 17, HawaiiRevised Statutes]:
Ā (1) Thatagricultural incentive programs to promote agricultural viability, sustainedgrowth of the agricultural industry, and the long-term use and protection ofimportant agricultural lands for agricultural use shall be developedconcurrently with the process of identifying important agricultural lands asrequired under section 2 of this Act [sections 205-41 to 52]; and
Ā (2) That thedesignation of important agricultural lands and adoption of maps by the landuse commission pursuant to section 2 of this Act [sections 205-41 to 52] shalltake effect only upon the enactment of legislation establishing incentives andprotections for important agricultural lands contemplated by section [205-46]and shall be satisfied by:
(A) Providinga declaration of satisfaction within the Act that establishes incentives forimportant agricultural lands; or
(B) Havingthe legislature adopt a concurrent resolution declaring the satisfaction ofimplementing incentives for important agricultural lands by identifying thespecific measures or Acts that establish incentives for important agriculturallands.
Ā (b)Ā Pursuant to section [205-46], Hawaii Revised Statutes,the department of agriculture, with the assistance of the department oftaxation, shall contract appropriate meeting facilitation and cost-benefitanalysis services to develop and recommend a package of proposals foragricultural incentives and other measures that promote agricultural viability,sustained growth of the agricultural industry, and the long-term use andprotection of important agricultural lands.
Ā The department of agriculture, in consultation with thedepartment of taxation, shall use consultants to promote a facilitated meetingprocess and deliberation and seek the assistance and input from the Hawaii FarmBureau Federation, landowners, affected state and county agencies, otherstakeholders, and persons with relevant expertise that are necessary to developand implement a comprehensive and integrated framework of incentives andprograms that will promote agricultural viability, sustained growth of theagricultural industry, and the long-term use and protection of importantagricultural lands for agricultural use in Hawaii, including tax policy,agricultural business development and financing, marketing, and agriculturalland use techniques.Ā The meeting facilitators shall ensure that stakeholderdiscussions are inclusive and use a consistent voting procedure.
Ā The department of agriculture shall report stakeholderfindings and recommendations, including proposed legislation and a recommendedminimum criteria for determining when the "enactment of legislationestablishing incentives and protection" has occurred for the purposes ofthis Act, to the legislature no later than twenty days before the convening ofthe regular session of 2007.Ā The report shall include an analysis of theimpacts and benefits of its recommendations, a record of the stakeholdergroup's process and deliberations, and shall provide the supporting rationalefor the incentives being proposed.
Ā (c)Ā Incentives and other programs to promote agriculturalviability, sustained growth of the agricultural industry, and the long-term useand protection of important agricultural lands for agricultural use in Hawaii by farmers and landowners to be considered by the department of agriculture shallinclude but not be limited to the following:
Ā (1) Assistancein identifying federal, state, and private grant and loan resources foragricultural business planning and operations, assistance with grant and loanapplication processes, and the processing of grants and loans;
Ā (2) Realproperty tax systems that support the needs of agriculture, including propertytax assessment of land and improvements used or held only for use inagriculture based on agricultural use value rather than fair market value;
Ā (3) Reducedinfrastructure requirements and facilitated building permit processes for theconstruction of dedicated agricultural structures;
Ā (4) Taxincentives that include but are not limited to:
(A) Taxcredits for the sale or donation of agricultural easements on importantagricultural lands; and
(B) Generalexcise tax exemption for retail sales of farm produce;
Ā (5) Incentivesthat promote investment in agricultural businesses or value-added agriculturaldevelopment, and other agricultural financing mechanisms;
Ā (6) Incentivesand programs that promote long-term or permanent agricultural land protection,and the establishment of a dedicated funding source for these programs;
Ā (7) Establishmentof a permanent state revolving fund, escalating tax credits based on the taxrevenues generated by increased investment or agricultural activities conductedon important agricultural lands, and dedicated funding sources to providemoneys for incentives and other programs;
Ā (8) Establishmentof a means to analyze the conformity of state-funded projects with the intentand purposes of part I of this Act [sections 205-41 to 52], and a mechanism formitigation measures when projects are not in conformance;
Ā (9) Institutionof a requirement for the preparation of an agricultural impact statement thatwould include mitigation measures for adverse impacts for proposed state orcounty rulemaking that may affect agricultural activities, operations, andagricultural businesses on important agricultural lands; and
Ā (10) Otherprograms to carry out the intent of part I of this Act [sections 205-41 to 52].
Ā SECTION 10.Ā Within one year of the adoption of maps ofimportant agricultural lands by the land use commission for the lands withinthe jurisdiction of each county, all state agencies shall report to thedepartment of agriculture on the impact of projects and programs on thedesignated important agricultural lands and sustained agricultural use of theselands.Ā State agencies shall develop implementation programs, as needed, toensure that their programs are supportive of agriculture and consistent withthe intent and purposes of this Act."