Requires the Department of Agriculture and Biosecurity to convene a Bona Fide Farmer Working Group to develop multi-tiered, matrix-based definitions for the terms "bona fide farmer" and "bona fide agricultural activity"., the official text

THE SENATE

S.B. NO.

2153

THIRTY-THIRD LEGISLATURE, 2026

S.D. 2

STATE OF HAWAII

H.D. 1

C.D. 1

A BILL FOR AN ACT

RELATING TO AGRICULTURE.

BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1.  The
legislature finds that in the State, land is a precious and limited resource,
and zoning laws often distinguish between land used for agricultural purposes
and other uses, such as residential or commercial development.  The lack of a uniform standard for what constitutes
a bona fide farmer can lead to discrepancies in the way agricultural zoning is
applied.  Landholders who are not truly
engaged in farming may take advantage of agricultural zoning designations,
potentially reducing available agricultural land and undermining the State's
efforts to preserve land for commercial agricultural activities.  This creates conflicts with the preservation
and allocation of agricultural resources, which should be reserved for farmers
who are engaged in genuine farming activities.

The legislature acknowledges that some of
the persistent difficulties in Hawaii agriculture have been reconciling the
diversity of agricultural practices with the need for a uniform, enforceable
standard that prevents abuse of agricultural tax classifications and land
entitlements, incorporating the breadth and scope of agricultural activity in
the State and providing comprehensive language that successfully incorporates
county level zoning and property tax ordinances regarding land and water usage.

The purpose of this Act is to require the department
of agriculture and biosecurity to convene a bona fide farmer working group to develop multi-tiered, matrix-based
definitions for the terms "bona fide farmer" and "bona fide
agricultural activity".

SECTION 2.
(a)  The department of agriculture
and biosecurity shall convene a bona fide farmer working group to develop multi-tiered, matrix-based definitions
for the terms "bona fide farmer" and "bona fide agricultural
activity".

(b)
The bona fide farmer working group shall consist of the following
members:

(1)  The
chairperson of the board of agriculture and biosecurity, or the chairperson's
designee, who shall serve as the chair of the working group;

(2)  The
chairperson of the board of trustees of the office of Hawaiian affairs, or the
chairperson's designee;

(3)  The
executive director of the Hawaii Farm Bureau, or the executive director's
designee, who shall be invited by the chair of the working group;

(4)  The
president and chief executive officer of the Hawaii Farmers Union United, or
the president and chief executive officer's designee, who shall be invited by
the chair of the working group;

(5)  The
president of the Hawaii Cattlemen's Council, or the president's designee, who
shall be invited by the chair of the working group; and

(6)  The
president of the Hawaii Floriculture and Nursery Association, or the
president's designee, who shall be invited by the chair of the working group.

(c)
The chair of the bona fide farmer working group may invite other
representatives of interested organizations with relevant experience and
expertise to participate in the working group, as necessary.

(d)
In developing the multi-tiered,
matrix-based definitions for the terms "bona fide farmer" and
"bona fide agricultural activity", the bona fide farmer working
group shall consider the following tiers, determine the individuals that are to
be included in each tier, and examine the feasibility of implementing the tier
system when considering the different types of farming operations in the State:

(1)  Tier I.
Entry-level and transitional farmers.
Tier I shall recognize bona fide entry-level and transitional farms and
ensure access to land, water, and agricultural support resources during the
establishment or recovery phase of a farm;

(2)  Tier
II.  Small-scale and diversified farmers.  Tier II shall recognize bona fide small-scale and diversified farms
without imposing unrealistic or strictly uniform income thresholds;

(3)  Tier
III.  Commercial and professional
farmers.  Tier III shall recognize bona fide commercial and professional farms
and ensure accountability for operators whose primary livelihood is derived
from agriculture while recognizing sector-specific economic realities; and

(4)  Tier IV.
Corporate and institutional agricultural enterprises.  Tier IV shall recognize bona fide corporate
and institutional agricultural enterprises and ensure that large-scale
agricultural enterprises maintain genuine agricultural operations and do not use
the designation of "bona fide farmer" or "bona fide agricultural
activity" for the purposes of land speculation or residential development.

(e)
Members of the bona fide farmer working group shall serve without
compensation but shall be reimbursed for reasonable expenses, including travel
expenses, necessary for the performance of their duties.

(f)
The bona fide farmer working group shall submit a report of its findings
and recommendations, including any proposed legislation, to the legislature no
later than twenty days prior to the convening of the regular session of 2028.

(g)
The bona fide farmer working group shall cease to exist on June 30,
2028.

SECTION 3.
This Act shall take effect on July 1, 2026.