STAND. COM. REP. NO. 3150

Honolulu, Hawaii

RE: H.B. No. 1603

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred H.B. No. 1603, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURAL PARK LEASES,"

begs leave to report as follows:

The purpose and intent of this measure is to repeal the requirement for land covered by an agricultural park lease with a remaining term of fifteen years or less to be located in a county having a population of less than five hundred thousand in order for the Department of Agriculture and Biosecurity to extend the lease.

Your Committee received testimony in support of this measure from the Office of the Mayor of the County of Maui; Hawaiʻi Farm Bureau; Ahiki Acres, LLC; Waimanalo Agricultural Association; Hawaiʻi Farmers Union United; Hilo County Farm Bureau; Hawaii Floriculture and Nursery Association; East Oahu County Farm Bureau; Maui County Farm Bureau; and five individuals.

Your Committee received comments on this measure from the Department of Agriculture and Biosecurity.

Your Committee finds that lease certainty is essential for agricultural viability for farmers operating in agricultural parks. Agricultural lenders routinely consider the remaining lease term when evaluating loan applications, and farmers with limited lease horizons are often unable to secure financing for their farm operations. Your Committee further finds that the City and County of Honolulu is the only county where farmers operating on agricultural parks cannot obtain a lease extension from the Department of Agriculture and Biosecurity. This measure will expand agricultural lease extension equity to all counties, increase local food production, and strengthen food security throughout the State.

Your Committee has amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1603, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1603, H.D. 1, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Agriculture and Environment,

________________________________

MIKE GABBARD, Chair