STAND. COM. REP. NO. 3041

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 Judiciary, to which was referred S.B. No. 2169, S.D. 1, 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 Agribusiness Development 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, Hawaiʻi Farm Bureau, and one individual.

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

Your Committee finds that one of the most persistent challenges facing the State's agricultural sector is its inability to assemble, protect, or access land and infrastructure necessary for viable food production. Fragmented ownership, long-term vacancy speculative holding, and unresolved access issues can prevent otherwise feasible agricultural projects from moving forward. Your Committee further finds that despite the Agribusiness Development Corporation's broad authority to acquire and manage lands, existing law does not afford the Corporation explicit statutory authority to acquire lands or easements by condemnation for public agricultural purposes, thereby impeding its mission to assist local producers in overcoming structural barriers to agricultural growth. This measure strengthens the State's ability to support food production, protect agricultural lands, and steward public investment in a responsible manner by enabling the Agribusiness Development Corporation to acquire real property or interest in real property by condemnation for the long-term benefit of the State's people, environment, and economy.

Your Committee notes the concerns raised in testimony by the Department of Land and Natural Resources regarding whether the condemnation powers conferred to the Agribusiness Development Corporation were intended to apply to condemning public or state lands. Due to time constraints, your Committee was unable to secure prior concurrence regarding this concern. Your Committee finds that this issue raises concerns that merit further consideration and respectfully requests that subsequent Committees to which this measure is referred examine this issue as it moves through the legislative process.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2169, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

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KARL RHOADS, Chair