SB2153 HD1

SECTION 1. The legislature finds that in the State, land is a precious and limited resource, and zoning laws often distinguish between land used for agricultural purposes and other uses, such as residential or commercial development. The lack of a uniform standard for what constitutes a bona fide farmer can lead to discrepancies in the way agricultural zoning is applied. Landholders who are not truly engaged in farming may take advantage of agricultural zoning designations, potentially reducing available agricultural land and undermining the State's efforts to preserve land for commercial agricultural activities. This creates conflicts with the preservation and allocation of agricultural resources, which should be reserved for farmers who are engaged in genuine farming activities.

The legislature acknowledges that some of the persistent difficulties in Hawaii agriculture have been reconciling the diversity of agricultural practices with the need for a uniform, enforceable standard that prevents abuse of agricultural tax classifications and land entitlements, incorporating the breadth and scope of agricultural activity in the State and providing comprehensive language that successfully incorporates county level zoning and property tax ordinances regarding land and water usage.

The purpose of this Act is to require the department of agriculture and biosecurity to convene a bona fide farmer working group to develop multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity".

SECTION 2. (a) The department of agriculture and biosecurity shall convene a bona fide farmer working group to develop multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity".

(b) The bona fide farmer working group shall consist of the following members:

(1) The chairperson of the board of agriculture and biosecurity, or the chairperson's designee, who shall serve as the chair of the working group:

(2) The chairperson of the board of trustees of the office of Hawaiian affairs, or the chairperson's designee;

(3) The executive director of the Hawaii Farm Bureau, or the executive director's designee, who shall be invited by the chair of the working group;

(4) The president and chief executive officer of the Hawaii Farmers Union United, or the president and chief executive officer's designee, who shall be invited by the chair of the working group;

(5) The president of the Hawaii Cattlemen's Council, or the president's designee, who shall be invited by the chair of the working group; and

(6) The president of the Hawaii Floriculture and Nursery Association, or the president's designee, who shall be invited by the chair of the working group.

(c) The chair of the bona fide farmer working group may invite other representatives of interested organizations with relevant experience and expertise to participate in the working group, as necessary.

(d) In developing the multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity", the bona fide working group shall consider the following tiers, determine the individuals that are to be included in each tier, and examine the feasibility of implementing the tier system when considering the different types of farming operations in the State:

(1) Tier I. Entry-level and transitional farmers. Tier I shall recognize bona fide entry-level and transitional farms and ensure access to land, water, and agricultural support resources during the establishment or recovery phase of a farm;

(2) Tier II. Small-scale and diversified farmers. Tier II shall recognize bona fide small-scale and diversified farms without imposing unrealistic or strictly uniform income thresholds;

(3) Tier III. Commercial and professional farmers. Tier III shall recognize bona fide commercial and professional farms and ensure accountability for operators whose primary livelihood is derived from agriculture while recognizing sector-specific economic realities; and

(4) Tier IV. Corporate and institutional agricultural enterprises. Tier IV shall recognize bona fide corporate and institutional agricultural enterprises and ensure that large-scale agricultural enterprises maintain genuine agricultural operations and do not use the designation of "bona fide farmer" or "bona fide agricultural activity" for the purposes of land speculation or residential development.

(e) Members of the bona fide farmer working group shall serve without compensation but shall be reimbursed for reasonable expenses, including travel expenses, necessary for the performance of their duties.

(f) The bona fide working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2028.

(g) The bona fide working group shall cease to exist on June 30, 2028.

SECTION 3. This Act shall take effect on July 1, 3000.

Report Title:

DAB; Working Group; Bona Fide Farmer; Bona Fide Agricultural Activity; Definitions; Report

Description:

Requires the Department of Agriculture and Biosecurity to convene a Bona Fide Farmer Working Group to develop multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity". Requires a report to the Legislature. Effective 7/1/3000. (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

THE SENATE	S.B. NO.	2153
THIRTY-THIRD LEGISLATURE, 2026		S.D. 2
STATE OF HAWAII		H.D. 1