Bill > SB245

This bill aims to protect Hawaii's agricultural lands by prohibiting certain entities from owning agricultural land or engaging in farming operations starting January 1, 2026. Specifically, the bill defines "prohibited entities" as corporations, trusts, non-resident entities, and investment funds, and restricts their ability to acquire or hold agricultural land in Hawaii. The legislation provides some exemptions for entities primarily composed of Hawaii residents who are actively engaged in farming, with no more than 15 shareholders, and whose primary business is farming. Exempt entities include nonprofit organizations registered under 501(c)(3) with missions supporting agriculture, education, or community development. The bill establishes enforcement mechanisms through the Department of Agriculture, which can assess fines of at least $50,000 per year for non-compliance and mandate divestiture or cessation of operations. Prohibited entities will have a five-year transition period to either divest their agricultural lands or restructure their operations to meet the exemption criteria. The underlying purpose of the bill is to preserve family farms, protect agricultural resources, ensure food security, and maintain the cultural and economic sustainability of Hawaii's agricultural sector, while carefully crafting provisions to avoid discriminating against interstate commerce.

Agriculture and Natural Resources

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=245&year=2025