STAND. COM. REP. NO. 3768

Honolulu, Hawaii

RE: H.B. No. 1737

H.D. 3

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 1737, H.D. 3, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO FARM EMPLOYEE HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to clarify the allowable uses within agricultural districts with respect to farm dwellings and farm employee housing.

Your Committee received testimony in support of this measure from the Department of Agriculture and Biosecurity, Office of Planning and Sustainable Development, Hawaiʻi Farm Bureau, Grassroot Institute of Hawaii, Housing Hawaiʻi's Future, Hawaiʻi Farmers Union United, and one individual.

Your Committee received testimony in opposition to this measure from the Libertarian Party of Hawaii.

Your Committee finds that farm dwellings and farm worker housing are essential components of viable agricultural operations, with on-site housing allowing farmers and ranchers to live near their operations, respond to livestock and crop needs, support agricultural workers, deter agricultural crimes, and maintain productive farms. However, misuse of agricultural lands for primarily residential purposes undermines the intent of the agricultural district, inflates land values, and creates conflicts that impact legitimate farming operations. This measure will maintain the integrity of the agricultural district to ensure that farm dwellings and farm worker housing are able to continue to play an important role in sustaining local agricultural production and supporting the State's agricultural workforce.

Your Committee has amended this measure by making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1737, H.D. 3, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1737, H.D. 3, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

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KARL RHOADS, Chair