SB2595 HD1

SECTION 1. Chapter 163D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§163D- Payments under a lease, license, or rental agreement; rates. (a) Any payment to the corporation under a lease, license, or rental agreement of real property acquired by the corporation under its authority under section 163D-4(a)(6) shall be in an amount no less than the appraised market value rate; provided that if the products of the lessee, licensee, or tenant are fresh local agricultural products, as defined in section 302A-405.6, that are purchased by the department of education or if the lessee, licensee, or tenant is a partner member of the food and product innovation network, as described in section 163D-20(b), the payment to the corporation under a lease, license, or rental agreement may be in an amount less than the appraised market value rate.

(b) For purposes of this section, the appraised market value rate shall be determined by:

(1) An employee of the board qualified to appraise the real, personal, or mixed property; or

(2) An appraisal requested by the prospective lessee, licensee, or tenant that is conducted using the Uniform Standards of Professional Appraisal Practice."

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) (A) Acquire [or] by grant or purchase, contract to acquire by grant or purchase, lease as a lessee, license as a licensee, or rent as a tenant any real, personal, or mixed property or any interest therein for its immediate or future use for the purposes of this chapter; [~~own,~~]

(B) Own, hold, improve, and rehabilitate any real, personal, or mixed property acquired[,]; and [~~sell,~~]

(C) Sell, assign, exchange, transfer, convey, [~~lease,~~] let, license as a licensor, rent as a landlord, or otherwise dispose of, or encumber [~~the same;~~] any real property acquired;

(7) 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) 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) 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) Coordinate its activities with any federal or state farm credit programs;

(11) 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) 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) 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) Accept gifts or grants in any form from any public agency or any other source; and

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

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 3000.

THE SENATE	S.B. NO.	2595
THIRTY-THIRD LEGISLATURE, 2026		S.D. 1
STATE OF HAWAII		H.D. 1