Authorizes the Agribusiness Development Corporation to acquire by condemnation any real property or interest in real property, except real property owned in a county with a population of more than 125,000 but less than 1, the official text

THE SENATE

S.B. NO.

2169

THIRTY-THIRD LEGISLATURE, 2026

S.D. 1

STATE OF HAWAII

H.D. 1

C.D. 2

A BILL FOR AN ACT

RELATING TO THE
AGRIBUSINESS DEVELOPMENT CORPORATION.

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

SECTION 1.  The
legislature finds that the State's long‑term food security and
agricultural resilience depend upon the availability of land and water
resources that can support diversified, sustainable agricultural production.
When the agribusiness development corporation (corporation) was established in
1994 by Act 264, Session Laws of Hawaii 1994, and codified as chapter 163D,
Hawaii Revised Statutes, the legislature envisioned that the State's transition
from plantation agriculture would release approximately seventy‑five
thousand acres of agricultural lands and fifty million gallons of irrigation
water per day for reuse by diversified agriculture.

However, three decades later, the full
potential of these resources has not been realized.  The consolidation of
agricultural parcels, rehabilitation of irrigation systems, and establishment
of modern agricultural infrastructure remain incomplete due to complex land
ownership patterns, dormant assets, and inadequate coordination among state
agencies.  The lack of a clear mechanism for the State to assemble
strategically located agricultural lands and critical infrastructure has
impeded Hawaii's ability to achieve food self-sufficiency and reduce dependence
on imported foods.

The legislature further finds that the
corporation was created to facilitate the conversion of former plantation lands
and water systems to diversified agricultural use, coordinate the development
of agricultural infrastructure, and assist local producers in overcoming
structural barriers to agricultural growth.  Yet, despite its broad authority
to acquire and manage lands, the corporation presently lacks explicit statutory
authority to acquire lands or easements by condemnation for public agricultural
purposes, even in situations where voluntary acquisition is impracticable or
contrary to the public interest.

The legislature recognizes that the power of
eminent domain is an extraordinary authority that must be exercised only for a
demonstrable public use, subject to the constitutional guarantees of just
compensation and due process, and with full regard for the State's obligations
under article XI, section 7, of the Hawaii State Constitution to protect,
control, and regulate the use of the State's water resources for the benefit of
its people.  The legislature further acknowledges that lands and water systems
are integral to Native Hawaiian customary and traditional rights, and to the
rights of beneficiaries under the Hawaiian Homes Commission Act of 1920, as
amended.

The legislative intent of the authority
established by this Act is not to promote private commercial gain, nor to
displace existing public uses of land without compelling justification and
legislative review.  Rather, the legislature seeks to restore coherence and
capacity to the State's agricultural infrastructure policy, enabling the public
sector to acquire and manage essential agricultural resources for the long-term
benefit of the State's people, environment, and economy.

Accordingly, the purpose of this Act is to
authorize the agribusiness development corporation to acquire real property or
any interest therein, except for real property owned in a county with a
population of more than 125,000 but less than 195,000 and certain public lands,
by condemnation pursuant to chapter 101, Hawaii Revised Statutes, under certain
circumstances.

SECTION 2.  Section 163D-4, Hawaii Revised
Statutes, is amended by amending subsection (a) to read as follows:

"(a)  Except as otherwise limited by this
chapter, the corporation may:

(1)  Sue and be sued;

(2)  Have a seal and alter the same at its pleasure;

(3)  Make and alter bylaws for its organization and
internal management;

(4)  Adopt rules under chapter 91 necessary to
effectuate this chapter in connection with its projects, operations, and
properties;

(5)  Make and execute contracts and all other
instruments necessary or convenient for the exercise of its powers and
functions under this chapter;

(6)  Acquire or contract to acquire by grant or
purchase any real, personal, or mixed property or any interest therein for its
immediate or future use for the purposes of this chapter; own, hold, improve,
and rehabilitate any real, personal, or mixed property acquired, and sell,
assign, exchange, transfer, convey, lease, or otherwise dispose of, or encumber
the same;

(7)  Acquire by condemnation pursuant to
chapter 101 any real property, including fixtures and improvements, or any
interest in real property, except real property owned in a county with a
population of more than 125,000 but less than 195,000 and public lands as
defined in section 171-2, for the purposes of this chapter; provided that:

(A)  The corporation makes a
determination that the property is necessary for the corporation's immediate or
future use for agricultural irrigation systems or agricultural purposes; and

(B)  Private property sought to be
acquired under threat of the exercise of the power of eminent domain shall only
be acquired through negotiated purchase;

[(7)] (8)  By itself, or in partnership
with qualified persons, acquire, construct, reconstruct, rehabilitate, improve,
alter, or repair any infrastructure or accessory facilities in connection with
any project; own, hold, sell, assign, transfer, convey, exchange, lease, or
otherwise dispose of, or encumber any project;

[(8)] (9)  In cooperation with the
department of agriculture and biosecurity, pursuant to chapter 167, or
otherwise through direct investment or coventure with a professional investor
or enterprise or any other person, or otherwise, to acquire, construct,
operate, and maintain water facilities for conveying, distributing, and
transmitting water for irrigation and agricultural uses at rates or charges
determined by the corporation; provided that:

(A)  This chapter shall not be construed to
permit or allow the department of agriculture and biosecurity or [any]
agribusiness development corporation to:

(i)  Amend or modify rights or entitlements to
water as provided for by article XI, section 7, of the Constitution of the
State of Hawaii, or the Hawaiian Homes Commission Act, 1920, as amended, and
chapter 168;

(ii)  Diminish or abridge the traditional and
customary rights of ahupuaʻa
tenants who inhabited the Hawaiian Islands [prior to] before 1778
under sections 1-1 and 7-1; and

(iii)  Impair, abridge, or terminate the legal
rights or interests to water and its uses, whether by lease, easement, or other
means, [which] that are possessed or held by organizations whose
primary purpose is to benefit people of Hawaiian ancestry; and

(B)  All usage of water shall be in accordance
with chapter 174C and other applicable laws in the State;

[(9)] (10)  Receive, examine, and
determine the acceptability of applications of qualified persons for allowances
or grants for the development of new crops and agricultural products, the
expansion of established agricultural enterprises, and the altering of existing
agricultural enterprises;

[(10)] (11)  Coordinate its activities
with any federal or state farm credit programs;

[(11)] (12)  Grant options to purchase any
project or to renew any lease entered into by it in connection with any of its
projects, on the terms and conditions it deems advisable;

[(12)] (13)  Provide advisory,
consultative, training, and educational services, technical assistance, and
advice to any person, partnership, or corporation, either public or private, in
order to carry out the purposes of this chapter, and engage the services of
consultants on a contractual basis for rendering professional and technical
assistance and advice;

[(13)] (14)  Procure insurance against any
loss in connection with its property and other assets and operations in [such]
amounts and from [such] insurers as it deems desirable;

[(14)] (15)  Accept gifts or grants in any
form from any public agency or any other source; and

[(15)] (16)  Do all things necessary or
proper to carry out the purposes of this chapter."

SECTION 3.  Statutory material to be repealed
is bracketed and stricken.  New statutory material is underscored.

SECTION 4.  This Act shall take effect on July 1, 2026.