STAND. COM. REP. NO. 2206

Honolulu, Hawaii

RE: S.B. No. 2169

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 Economic Development and Tourism, to which was referred S.B. No. 2169 entitled:

"A BILL FOR AN ACT RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Authorize the Agribusiness Development Corporation to acquire by condemnation any real property or interest in real property, under certain conditions; and

(2) Prohibit 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.

Your Committee received testimony in support of this measure from the Agribusiness Development Corporation and Hawaiʻi Farm Bureau.

Your Committee received comments on this measure from the Department of Land and Natural Resources.

Your Committee finds that the inability to assemble, protect, or access land and infrastructure necessary for viable food production is one of the most persistent challenges facing the State's agricultural sector. In certain circumstances, issues such as fragmented ownership, long-term vacancy, or unresolved access issues can delay or prevent the Agribusiness Development Corporation's development of essential agricultural infrastructure that serves a clear public purpose. This measure empowers the Agribusiness Development Corporation to address critical barriers to agricultural land access, infrastructure development, and food production through eminent domain authority, subject to legal safeguards.

Your Committee has amended this measure by:

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

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

As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2169, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2169, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,

________________________________

LYNN DECOITE, Chair