[§205-46]  Incentives for importantagricultural lands.  (a)  To achieve the long-term agricultural viabilityand use of important agricultural lands, the State and each county shall ensurethat their:

(1)  Agricultural development, land use, water use, regulatory,tax, and land protection policies; and

(2)  Permitting and approval procedures,

enableand promote the economic sustainability of agriculture.

Agricultural operations occurring on importantagricultural lands shall be eligible for incentives and protections provided bythe State and counties pursuant to this section to promote the viability ofagricultural enterprise on important agricultural lands and to assure theavailability of important agricultural lands for long-term agricultural use.

(b)  State and county incentive programs shallprovide preference to important agricultural lands and agricultural businesseson important agricultural lands.  The State and each county shall cooperate inprogram development to prevent duplication of and to streamline and consolidateaccess to programs and services for agricultural businesses located onimportant agricultural lands.

(c)  Incentive and protection programs shall bedesigned to provide a mutually supporting framework of programs and measures thatenhance agricultural viability on important agricultural lands, including butnot limited to:

(1)  Grant assistance;

(2)  Real property tax systems that support the needsof agriculture, including property tax assessments based on agricultural usevaluation;

(3)  Reduced infrastructure requirements andfacilitated building permit processes for dedicated agricultural structures;

(4)  Tax incentives to offset operational costs,promote agricultural business viability, and promote the long-term protection ofimportant agricultural lands;

(5)  Agricultural business planning, marketing, andimplementation grants;

(6)  Tax incentives and programs for equityinvestments and financing for agricultural operations, including agriculturalirrigation systems;

(7)  Other programs and mechanisms that promoteinvestment in agricultural businesses or agricultural land protection, such asthe purchase of development rights;

(8)  State funding mechanisms to fund businessviability and land protection programs;

(9)  Water regulations and policies that providefarmers of important agricultural lands access to adequate and cost-effectivesources of water;

(10)  Other measures that would ensure that statecapital investments, projects, programs, and rules are consistent with thispart; and

(11)  Agricultural education and training for newfarmers; upgrading the skills of existing farmers and other agriculture-relatedemployees through the use of mentoring, business incubators, and public orprivate scholarships; and increasing the returns of farming by adding value tofood processing and other tools and methods.

(d)  State and county agencies shall review theprotection and incentive measures enacted for important agricultural lands andagricultural viability pursuant to this chapter at least every five years to:

(1)  Determine their effectiveness in sustainingagriculture in Hawaii, assuring agricultural diversification, and increasingagricultural self-sufficiency;

(2)  Determine whether the effectiveness of taxcredits or incentive programs will be enhanced by creating revolving funds orincreasing rates based upon the tax revenues generated by enhanced investmentand agricultural activities on important agricultural lands; and

(3)  Modify measures and programs as needed.

(e)  This section shall apply only to thoselands designated as important agricultural lands pursuant to sections 205-45and 205-49. [L 2005, c 183, pt of §2]