THE SENATE
S.B. NO.
1657
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
relating to the agribusiness development corporation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. 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;
[Underlined: (7)] [Underlined: Acquire by condemnation pursuant to chapter 101 any real property, including fixtures and improvements, or any interest in real property, for the purposes of this chapter; provided that:]
[Underlined: (A)] [Underlined: The corporation makes a determination that the property is necessary for the corporation's immediate or future use;]
[Underlined: (B)] [Underlined: Notwithstanding section 163D-16, the corporation may acquire by condemnation real property already devoted to public use; and]
[Underlined: (C)] [Underlined: Notwithstanding any other law to the contrary, real property acquired by condemnation shall not thereafter be transferred or taken for any other public use without the consent of the corporation;]
[[Struck through: (7)]] [Underlined: (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;
[[Struck through: (8)]] [Underlined: (9)] In cooperation with the department of agriculture, 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 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 ahupua`a tenants who inhabited the Hawaiian Islands prior to 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, [[Struck through: which]] [Underlined: 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;
[[Struck through: (9)]] [Underlined: (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;
[[Struck through: (10)]] [Underlined: (11)] Coordinate its activities with any federal or state farm credit programs;
[[Struck through: (11)]] [Underlined: (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;
[[Struck through: (12)]] [Underlined: (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;
[[Struck through: (13)]] [Underlined: (14)] Procure insurance against any loss in connection with its property and other assets and operations in [[Struck through: such]] amounts and from [[Struck through: such]] insurers as it deems desirable;
[[Struck through: (14)]] [Underlined: (15)] Accept gifts or grants in any form from any public agency or any other source; and
[[Struck through: (15)]] [Underlined: (16)] Do all things necessary or proper to carry out the purposes of this chapter."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.
INTRODUCED BY:
_____________________________
Report Title:
ADC; Real Property; Condemnation; Eminent Domain; Public Use
Description:
Authorizes the Agribusiness Development Corporation to acquire by condemnation any real property or interest in real property, including real property already devoted to public use, for the purposes of Chapter 163D, HRS. Requires the Agribusiness Development Corporation to make a determination that the property is necessary for the corporation's immediate or future use. Prohibits real property acquired by condemnation from being subsequently transferred or taken for any other public use without the consent of the Agribusiness Development Corporation.
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