SB2334

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

agricultural land conservation

§ -1 Definitions. As used in this chapter:

"Agricultural land" means land that is intensively used and managed for the production of food and fiber. "Agricultural land" includes cropland; hay land; pastures, including native pastures and rangeland; orchards; vineyards; areas that support wetland crops; other lands used to support the production of livestock; and small tree farms.

"Consumer Price Index-U" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100.

"Department" means the department of agriculture and biosecurity.

"Fund" means the agricultural land conversion fee fund.

"Soil and water conservation district" means a governmental subdivision of the State, and a public body corporate and politic, organized under chapter 180.

"Solar energy facility" means a facility described in section 205-2(d)(6) that meets the permissible use requirements described in section 205-4.5(a)(20) and (21) on lands classified as agricultural.

"Wind farm" means a wind machine or wind farm described in section 205-2(d)(8) that meets the permissible use requirements described in section 205-4.5(a)(15) on lands classified as agricultural.

§ -2 Agricultural land conversion fee. (a) Beginning January 1, 2027, an agricultural land conversion fee shall be paid by the buyer or lessee in a transaction for any land classified as agricultural under chapter 205 that is primarily utilized for purposes set forth in sections 205-2(d)(1) through (3) and 205-4.5(a)(1) through (4) and that is intended to be converted by the buyer or lessee from agricultural land for the following purposes:

(1) To develop:

(A) A solar energy facility;

(B) A wind farm;

(D) A commercial area; or

(E) A single-family or multiple-family dwelling that is not a farm dwelling as defined under section 205-4.5(a)(4); or

(2) Any other use that prevents land classified as agricultural from being used specifically as agricultural land.

(b) The agricultural land conversion fee shall apply to any agricultural land that is leased or purchased in the State. The fee shall be remitted to the department within thirty days of the purchase or lease of the agricultural land by the buyer or lessee.

(1) $3,600 per acre for the removal of ten or fewer acres of agricultural land;

(2) $3,200 per acre for the removal of more than ten acres but fewer than thirty acres of agricultural land; and

(3) $2,800 per acre for the removal of thirty or more acres of agricultural land.

(d) The department shall collect the agricultural land conversion fee and deposit all revenues from the fee into the fund.

(e) The following shall be exempt from the agricultural land conversion fee:

(1) Agricultural land that is removed from agricultural production for the personal use of a farmer or landowner; or

(2) Any conversion of agricultural land:

(A) In which the primary function supports agricultural infrastructure, such as livestock operations or grain elevators;

(B) Performed by an agency of the State;

(D) Whose primary purpose is the establishment of conservation practices.

§ -3 Agricultural land conversion fee fund. (a) There is established within the state treasury the agricultural land conversion fee fund, into which shall be deposited all revenues generated by agricultural land conversion fees.

(b) Moneys in the fund shall be collected and expended by the department only for the following purposes:

(1) To support the operations and programs of the soil and water conservation districts;

(2) For administrative costs incurred by the department in administering this chapter; and

(3) For any other purpose expressly provided by this chapter or by rules adopted by the department to implement this chapter.

§ -4 Allocation and expenditure of moneys in the fund. (a) The department shall annually ensure that, subject to the moneys in the fund and before expending moneys for any other purpose:

(1) At least $ shall be used by the department for the healthy soils program, annually adjusted by the percentage change in the Consumer Price Index-U of the preceding year; and

(2) $ shall be retained by the department for administrative and other costs associated with collection of the agricultural land conversion fees and related activities.

(b) After the moneys in the fund have been allocated pursuant to subsection (a), any remaining moneys may be expended by the department for other purposes allowed by this chapter.

§ -5 Commercial agricultural production on state lands. All state lands used in the commercial production of agricultural commodities, including any lands under lease agreements with the department, shall use an established metric to advance the adoption of conservation practices, including but not limited to:

(1) Cover crops;

(2) No till;

(3) Strip till;

(4) Nutrient management plans;

(5) Saturated buffers;

(6) Bioreactor terraces;

(7) Contours;

(8) Grass filter strips;

(9) Riparian buffers;

(10) Grassed waterways;

(11) Pollinator plantings;

(12) Windbreaks;

(13) Constructed wetlands;

(14) Tile drainage water that is collected and sampled for water quality;

(15) Conservation plans that reduce sheet and rill erosion; and

(16) Nitrogen rate studies.

§ -6 Rules. The department shall adopt rules pursuant to chapter 91 to implement this chapter."

SECTION 2. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2334
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII