REPORT TITLE:
Agricultural Parks


DESCRIPTION:
Authorizes DOA to allow lessees to process, market, and display
agricultural crops and commodities, in its agricultural parks
including any product created through value-added processes.
Defines value-added process.  Allows BOA to adopt rules.  (HB945
SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        945
THE SENATE                              H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                S.D. 1
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO AGRICULTURAL PARKS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that the lands of Hawaii's
 
 2 agricultural parks should be utilized to their fullest and
 
 3 highest potential.  Unfortunately, many lessees lack the
 
 4 resources or methods to display and market their crops and
 
 5 commodities in a setting that is conducive for public access by
 
 6 both residents and visitors.  Further, the agricultural park
 
 7 program's statutory limitation prevents lessees from operating a
 
 8 commercial venture within the agricultural park complex.  The
 
 9 legislature finds that the department of agriculture should take
 
10 a more active role in assisting and promoting agriculture-related
 
11 commercial activity within an agricultural park complex.
 
12      The purpose of this Act is to authorize the department of
 
13 agriculture to allow agriculture-related commercial operations to
 
14 be conducted by lessees in agricultural park complexes.  These
 
15 commercial activities may include processing, marketing,
 
16 displaying, and agricultural activities related to attracting,
 
17 assembling, or collecting agricultural products for sale at a
 
18 common site within the agricultural park complex.  A qualifying
 
19 project shall be for public use and shall promote the public
 

 
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 1 interest and welfare by supporting the economy of the State.
 
 2      SECTION 2.  Chapter 166, Hawaii Revised Statutes, is amended
 
 3 by adding a new section to be appropriately designated and to
 
 4 read as follows:
 
 5      "§166-    Commercial activity.  (a)  The department of
 
 6 agriculture may allow, in each of its existing and future
 
 7 agricultural parks, the processing, marketing, and displaying of
 
 8 agricultural crops, or commodities, which shall include any
 
 9 product created through value added processes.  This shall allow
 
10 agricultural commercial venture operations that may sell to the
 
11 general public; provided that the operation shall be owned by an
 
12 agricultural park lessee in good standing with the department.
 
13      For the purposes of this section, a "value-added process" is
 
14 a process by which the commercial value of raw agricultural
 
15 products or goods is increased.
 
16      (b)  The board of agriculture may perform any and all acts
 
17 and adopt rules pursuant to chapter 91 necessary to carry out
 
18 this section."
 
19      SECTION 3.  Section 166-6, Hawaii Revised Statutes, is
 
20 amended by amending subsection (a) to read as follows:
 
21      "(a)  Any provision of this chapter to the contrary
 
22 notwithstanding, the board may by negotiation, drawing of lot, or
 
23 public auction, directly dispose of public lands and related
 

 
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 1 facilities set aside and designated for use as agricultural
 
 2 parks, and any other lands and facilities under the jurisdiction
 
 3 of the department pursuant to section 166-3 and notwithstanding
 
 4 chapter 171.  Except as provided by subsection (c), dispositions
 
 5 may be by lease and shall be subject to the requirements set
 
 6 forth in rules adopted by the board in conformity with section
 
 7 166-9, and subject also to the following limitations:
 
 8      (1)  The property shall be disposed of for agricultural [or]
 
 9           aquacultural, or commercial purposes only;
 
10      (2)  The lessee shall derive the major portion of the
 
11           lessee's total annual income from the lessee's
 
12           activities on the premises; provided that this
 
13           restriction shall not apply if failure to meet the
 
14           restriction results from mental or physical disability
 
15           or the loss of a spouse, or if the premises are fully
 
16           utilized in the production of crops or products for
 
17           which the disposition was granted;
 
18      (3)  The lessee shall comply with all federal and state laws
 
19           regarding environmental quality control;
 
20      (4)  The board shall determine the specific uses for which
 
21           the disposition is intended; parcel the land into
 
22           minimum size economic units sufficient for the intended
 
23           uses; make, or require the lessee to make improvements
 

 
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 1           as are required to achieve the intended uses; set the
 
 2           upset price or lease rent based upon an appraised
 
 3           evaluation of the property value adjustable as provided
 
 4           in rules adopted in accordance with chapter 91 to the
 
 5           specified use of the lot; set the term of the lease,
 
 6           which shall be not less than fifteen years nor more
 
 7           than fifty-five years, including any extension granted
 
 8           for mortgage lending or guarantee purposes; and
 
 9           establish other terms and conditions as it may deem
 
10           necessary, including but not limited to restrictions
 
11           against alienation and provisions for withdrawal by the
 
12           board;
 
13      (5)  No lease shall be made to any person who is in arrears
 
14           in the payment of taxes, rents, or other obligations
 
15           owing the State or any county; and
 
16      (6)  Any transferee, assignee, or sublessee of an
 
17           agricultural park lease shall first qualify as an
 
18           applicant under this chapter.  For the purpose of this
 
19           paragraph, any transfer, assignment, sale, or other
 
20           disposition of any interest, excluding a security
 
21           interest, of any legal entity which holds an
 
22           agricultural park lease shall be treated as a transfer
 
23           of the agricultural park lease and shall be subject to
 

 
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 1           the approval of the board of agriculture upon
 
 2           reasonable terms and conditions, not inconsistent with
 
 3           this chapter or rules of the board, which the board may
 
 4           deem necessary.  No transfer shall be approved by the
 
 5           board if the disposition of the stock, or assets or
 
 6           other interest of the legal entity would result in the
 
 7           failure of the entity to qualify for an agricultural
 
 8           park lease."
 
 9      SECTION 4.  Statutory material to be repealed is bracketed.
 
10 New statutory material is underscored.
 
11      SECTION 5.  This Act shall take effect upon its approval.