STAND. COM. REP. NO. 3219

Honolulu, Hawaii

RE: H.B. No. 1737

H.D. 3

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Agriculture and Environment and Housing, to which was referred H.B. No. 1737, H.D. 3, entitled:

"A BILL FOR AN ACT RELATING TO FARM EMPLOYEE HOUSING,"

beg leave to report as follows:

The purpose and intent of this measure is to clarify the allowable uses within agricultural districts with respect to farm dwellings and farm employee housing.

Your Committees received testimony in support of this measure from the Office of Planning and Sustainable Development, Office of the Mayor of the County of Maui, Hawaiʻi Farm Bureau, Grassroot Institute of Hawaii, Hawaiʻi Farmers Union United, Libertarian Party of Hawaii, Dole Food Company Hawaii, and thirty-seven individuals.

Your Committees received comments on this measure from the Department of Agriculture and Biosecurity and Department of Planning and Permitting of the City and County of Honolulu.

Your Committees find that farm employee housing helps bona fide farms recruit and retain workers and alleviate the State's housing shortage. Furthermore, on-site housing allows farmers and ranchers to live near their operations, respond to livestock and crop needs, deter agricultural crimes, and maintain productive farms, particularly in rural areas where housing options are limited. Farm dwellings and farm worker housing further play an important role in sustaining local agricultural production. This measure allows increased flexibility for diverse forms of housing for farm workers, while promoting sustainable agricultural operations.

Your Committees have amended this measure by:

(1) Inserting language to require that each farm employee housing residential dwelling unit shall be occupied by agricultural employees and their immediate family members who are actively engaged in the farm operation;

(2) Specifying that farm employee housing that has been issued a permit or certificate of occupancy by a county before the effective date of this measure shall be deemed nonconforming;

(3) Deleting language that would have established a certain ratio of square feet per acre of agricultural land that a farm dwelling, farm employee housing, and all appurtenances could be situated;

(4) Clarifying that agricultural tourism activities may occur on the same parcel as a farm dwelling when the activities are secondary and incidental to a bona fide agricultural operation, do not occur within farm employees housing units, and comply with county ordinances adopted pursuant to section 205-5, Hawaii Revised Statutes;

(5) Specifying that state regulations of permissible uses within the agricultural districts shall not supersede or limit certain county authorities;

(6) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(7) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Agriculture and Environment and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1737, H.D. 3, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1737, H.D. 3, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Environment and Housing,

________________________________ STANLEY CHANG, Chair

________________________________ MIKE GABBARD, Chair