THE SENATE	S.B. NO.	2169
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

A BILL FOR AN ACT

Relating to the agribusiness development corporation.

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

SECTION 1. The legislature finds that the State's long‑term food security and agricultural resilience depend upon the availability of land and water resources that can support diversified, sustainable agricultural production. When the agribusiness development corporation (corporation) was established in 1994 by Act 264, Session Laws of Hawaii 1994, and codified as chapter 163D, Hawaii Revised Statutes, the legislature envisioned that the State's transition from plantation agriculture would release approximately seventy‑five thousand acres of agricultural lands and fifty million gallons of irrigation water per day for reuse by diversified agriculture.

However, three decades later, the full potential of these resources has not been realized. The consolidation of agricultural parcels, rehabilitation of irrigation systems, and establishment of modern agricultural infrastructure remain incomplete due to complex land ownership patterns, dormant assets, and inadequate coordination among state agencies. The lack of a clear mechanism for the State to assemble strategically located agricultural lands and critical infrastructure has impeded Hawaii's ability to achieve food self-sufficiency and reduce dependence on imported foods.

The legislature further finds that the corporation was created to facilitate the conversion of former plantation lands and water systems to diversified agricultural use, coordinate the development of agricultural infrastructure, and assist local producers in overcoming structural barriers to agricultural growth. Yet, despite its broad authority to acquire and manage lands, the corporation presently lacks explicit statutory authority to acquire lands or easements by condemnation for public agricultural purposes, even in situations where voluntary acquisition is impracticable or contrary to the public interest.

The legislature recognizes that the power of eminent domain is an extraordinary authority that must be exercised only for a demonstrable public use, subject to the constitutional guarantees of just compensation and due process, and with full regard for the State's obligations under article XI, section 7, of the Hawaii State Constitution to protect, control, and regulate the use of the State's water resources for the benefit of its people. The legislature further acknowledges that lands and water systems are integral to Native Hawaiian customary and traditional rights, and to the rights of beneficiaries under the Hawaiian Homes Commission Act of 1920.

The legislative intent of the authority established by this Act is not to promote private commercial gain, nor to displace existing public uses of land without compelling justification and legislative review. Rather, the legislature seeks to restore coherence and capacity to the State's agricultural infrastructure policy, enabling the public sector to acquire and manage essential agricultural resources for the long-term benefit of the State's people, environment, and economy.

Accordingly, the purpose of this Act is to authorize the agribusiness development corporation to acquire real property or any interest therein by condemnation, pursuant to chapter 101, Hawaii Revised Statutes, solely for legitimate public agricultural uses, such as the establishment or preservation of irrigation systems, reservoirs, processing and distribution facilities, and other infrastructure that directly supports local agricultural producers and food-security initiatives.

SECTION 2. Section 163D-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Except as otherwise limited by this chapter, the corporation may:

(1) Sue and be sued;

(2) Have a seal and alter the same at its pleasure;

(3) Make and alter bylaws for its organization and internal management;

(4) Adopt rules under chapter 91 necessary to effectuate this chapter in connection with its projects, operations, and properties;

(5) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

(6) Acquire or contract to acquire by grant or purchase any real, personal, or mixed property or any interest therein for its immediate or future use for the purposes of this chapter; own, hold, improve, and rehabilitate any real, personal, or mixed property acquired, and sell, assign, exchange, transfer, convey, lease, or otherwise dispose of, or encumber the same;

(7) Acquire by condemnation pursuant to chapter 101 any real property, including fixtures and improvements, or any interest in real property, for the purposes of this chapter; provided that the corporation makes a determination that the property is necessary for the corporation's immediate or future use. Notwithstanding any other law to the contrary, any real property acquired by condemnation shall not thereafter be transferred or taken for any other public use without the consent of the corporation;

[(7)] (8) By itself, or in partnership with qualified persons, acquire, construct, reconstruct, rehabilitate, improve, alter, or repair any infrastructure or accessory facilities in connection with any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of, or encumber any project;

[(8)] (9) In cooperation with the department of agriculture and biosecurity, pursuant to chapter 167, or otherwise through direct investment or coventure with a professional investor or enterprise or any other person, or otherwise, to acquire, construct, operate, and maintain water facilities for conveying, distributing, and transmitting water for irrigation and agricultural uses at rates or charges determined by the corporation; provided that:

(A) This chapter shall not be construed to permit or allow the department of agriculture and biosecurity or [any] agribusiness development corporation to:

(i) Amend or modify rights or entitlements to water as provided for by article XI, section 7, of the Constitution of the State of Hawaii, or the Hawaiian Homes Commission Act, 1920, as amended, and chapter 168;

(ii) Diminish or abridge the traditional and customary rights of ahupuaʻa tenants who inhabited the Hawaiian Islands [prior to] before 1778 under sections 1-1 and 7-1; and

(iii) Impair, abridge, or terminate the legal rights or interests to water and its uses, whether by lease, easement, or other means, [which] that are possessed or held by organizations whose primary purpose is to benefit people of Hawaiian ancestry; and

(B) All usage of water shall be in accordance with chapter 174C and other applicable laws in the State;

[(9)] (10) Receive, examine, and determine the acceptability of applications of qualified persons for allowances or grants for the development of new crops and agricultural products, the expansion of established agricultural enterprises, and the altering of existing agricultural enterprises;

[(10)] (11) Coordinate its activities with any federal or state farm credit programs;

[(11)] (12) Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on the terms and conditions it deems advisable;

[(12)] (13) Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, in order to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

[(13)] (14) Procure insurance against any loss in connection with its property and other assets and operations in [such] amounts and from [such] insurers as it deems desirable;

[(14)] (15) Accept gifts or grants in any form from any public agency or any other source; and

[(15)] (16) Do all things necessary or proper to carry out the purposes of this chapter."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

ADC; Real Property; Condemnation; Eminent Domain; Public Use

Description:

Authorizes the Agribusiness Development Corporation to acquire by condemnation any real property or interest in real property, under certain conditions. Prohibits any real property acquired by the Corporation by condemnation from subsequently being transferred or taken for any other public use without the Corporation's consent.

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