Report Title:

Relating to Land Use.

Description:

Sets forth standards and criteria for the identification of important agricultural lands. Allows the counties to study, determine, and recommend to the Land Use Commission lands which should be designated as important agricultural lands. Authorizes the Commission to identify and designate important agricultural lands.

HOUSE OF REPRESENTATIVES

H.B. NO.

2339

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

Relating to LAND USE.

 

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

SECTION 1. The people of Hawaii have a substantial interest in the health and sustainability of agriculture in this State. There is a need to conserve the State's agricultural land resource base and assure the long-term availability of agricultural lands for agricultural use in order to effectively implement state agricultural objectives pursuant to article XI, section 3, of the Constitution of the State of Hawaii. The legislature finds that article XI, section 3, of the State Constitution mandates the State to conserve and protect agricultural lands, promote diversified agriculture, increase agricultural self-sufficiency, and assure the availability of agriculturally suitable lands. That provision also requires the legislature to provide standards and criteria to accomplish these objectives.

Despite numerous attempts, the constitutional mandate to identify important agricultural lands has not yet been carried out. As a result, some important agricultural lands have been lost to other uses. It is the intent of the legislature that this Act shall fulfill the state constitutional mandate to establish standards and criteria to promote agricultural development and use of agricultural lands to meet the State's agricultural objectives.

When the state land use districts were established, the agricultural districts became the "default" district. Lands that did not clearly belong in the urban or conservation districts were designated agricultural. (The rural district was created later.) Accordingly, there are presently approximately 1.9 million acres of land classified as agriculture. This is far more land than technical analyses have indicated are appropriately designated or needed for current and future agricultural needs.

This over-designation of agricultural land is one reason for the abuse of the "farm dwelling" rule that has led to widespread development of "gentlemen estates" and other residential subdivisions in the agricultural district and the resulting loss of agricultural lands and sprawling development of agriculturally designated areas, especially on the neighbor islands. Sprawl extends the need for public services; specifically it brings a demand for schools, businesses, churches, and other urban uses. While there is a legitimate demand for rural-style residential development, nevertheless it needs to be planned and regulated appropriately.

It is the intent of the legislature to set forth and clarify the standards and criteria for the identification and protection of important agricultural lands. The legislature also finds that, wherever possible, and subject to appropriate state guidance and oversight, land use planning and decision-making should be done at the level closest and most accountable to the people; namely the counties. This Act sets forth standards and criteria for the identification of important agricultural lands, empowers the counties to study, determine, and recommend to the land use commission what lands should be designated as important agricultural lands, and authorizes the state land use commission to identify and designate important agricultural lands

The purpose of this Act is thus to establish a coordinated, collaborative, and consistent system of state and county plans, procedures, and programs governing land use and development in the State that will fulfill the constitutional mandate to identify and preserve important agricultural lands while at the same time promote local decision-making, based upon state standards and criteria and subject to state oversight.

SECTION 2. Chapter 205, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART . IMPORTANT AGRICULTURAL LANDS

§205-A Important agricultural lands; definition and objectives. As used in this part, unless the context otherwise requires, "important agricultural lands" means those lands identified pursuant to this part that:

(1) Are capable of producing sustained high agricultural yields when treated and managed according to accepted farming methods and technology; or

(2) Contribute to the economic base of the State and produce agricultural commodities for export or local consumption; or

(3) Are needed to promote the expansion of agricultural activities and income for the future, even if currently not in production.

§205-B Identification of important agricultural lands; standards and criteria; county recommendations. (a) The commission shall identify and designate important agricultural lands based upon the process set forth below.

(b) Each county shall identify and map for recommendation to the commission important agricultural lands within its respective jurisdiction. In identifying and mapping important agricultural lands, each county shall follow the criteria set forth below. Lands identified as important agricultural lands need not meet every criteria listed below; rather lands meeting each of the criteria below shall be given initial and prime consideration, but the designation of important agricultural lands shall be made by weighing the criteria with each other in order to meet the goals set forth in article XI, section 3 of the Hawaii State Constitution. The criteria are as follows:

(1) Land currently in agricultural production;

(2) Land with soil qualities and growing conditions that support agricultural production;

(3) Land identified under agricultural productivity rating systems, such as, but not limited to, the department of agriculture's "agricultural lands of importance to the State of Hawaii";

(4) Land types associated with unique, traditional, and nontraditional agricultural uses (such as, by way of example and not by way of limitation, coffee, taro, and wine grapes, respectively);

(5) Land with sufficient quantities of available water that supports viable agriculture production;

(6) Land whose designation as important agricultural lands is consistent with county general and community plans;

(7) Land that contributes to maintaining a critical land mass important to agricultural operating productivity;

(8) Land with, or close to, support infrastructure conducive to agricultural productivity (e.g., transportation to markets, water, or power); and

(9) Land that will provide a margin for future agricultural needs and opportunities.

(c) In formulating recommendations identifying important agricultural lands, the counties, through their respective planning departments, shall develop and implement an inclusive process for public consideration of the lands proposed to be identified and designated and the accompanying maps. At a minimum, each county planning department shall consult with the department of agriculture, state planning agencies, and agricultural interest groups, including farm bureau representatives, community groups, landowners, and other groups. Each county shall hold at least one public meeting to consider the lands proposed to be recommended for designation as important agricultural lands and the proposed maps. The county planning departments also shall consider the establishment of citizen or regional advisory committees on important agricultural lands so as to provide additional public input. Upon completion of the identification of lands to be recommended for designation as important agricultural lands and the accompanying maps, the planning department of each county shall prepare a report containing at least the following information:

(1) The manner in which the land recommended to be identified as important agricultural land relates to the standards and criteria set forth in subsection (b); and

(2) How the recommendation relates to and supports the county's adopted land use plans. After consideration of the planning department's recommendations, and no later than June 30, 2006, each county council shall, through a resolution, adopt and transmit the county's recommendations, report, and maps to the commission for consideration.

§205-C Designation of important agricultural lands by land use commission; adoption of maps. (a) Within one hundred and twenty days after receipt of the county's recommendations, report, and maps, and after conducting at least one public meeting in a quasi-legislature capacity on the subject in each county in accordance with chapter 92, the commission shall (as set forth in this part and as otherwise appropriate) consider the county recommendations, shall designate such lands in that county as important agricultural lands, and adopt maps delineating important agricultural lands in the State for that county. Designation of important agricultural lands and adoption of the maps shall require the affirmative vote of at least two-thirds of the membership to which the commission is entitled.

(b) In designating important agricultural lands, the commission shall review and consider the recommendations and maps submitted by the county based upon the standards and criteria and the process requirements set forth in section 205-B. The commission also shall consult with the office of planning, and the department of agriculture.

(c) At the time the commission designates important agricultural lands and adopts the accompanying maps, the commission shall adopt a report or findings that include:

(1) Comments received during the public meetings;

(2) Comments and recommendations from state planning agencies and the department of agriculture;

(3) The basis for the designation of the important agricultural lands;

(4) Any concerns or issues related to the designated lands; and

(5) Any information that may be required to identify the general boundaries of designated important agricultural lands on the accompanying maps.

(d) After conducting a public meeting as provided in subsection (a), the commission may adopt the county recommendations and maps for the designation of important agricultural lands, or return the county recommendations for reconsideration and revision, in whole or in part. If the commission does not concur with county recommendations in part, the commission shall return the portion of the county recommendations to the county for reconsideration and revision; provided that those recommendations approved by the commission shall have full force and effect. Any revisions and resubmittal to the commission shall be subject to public notice and at least one public hearing in the applicable county. Submittal of revisions, state agency review, and commission decision-making on revisions shall be in accordance with this part. If the commission finds that (1) the county has failed to identify important agricultural lands using the criteria set forth in section 205-A and 205-B, (2) the county has not followed the public process requirements set forth in section 205-B, or (3) the county has failed to provide its recommendations to the commission in a timely manner, the commission may designate different lands and adopt different maps pursuant to and in accordance with the standards and criteria set forth in section 205-B.

§205-D Adopted maps; boundary interpretations. (a) Copies of the maps of important agricultural lands adopted by the commission shall be transmitted to each county planning department and county council, the department of agriculture, and state planning agencies. The maps of important agricultural lands shall guide all decision-making on the proposed reclassification or rezoning of important agricultural lands, state agricultural development programs, and other state and county land use planning and decision-making.

(b) The commission shall have the sole authority to interpret and adopt map boundaries delineating the important agricultural lands to the State.

§205-E Standards and criteria for reclassification or rezoning of important agricultural lands. (a) Any land use district boundary amendment or county change in zoning affecting important agricultural lands shall be subject to this section.

(b) Any decision of the commission or county land use decision-making body affecting important agricultural lands shall be approved by the body responsible for the decision by a two-thirds vote of the membership to which the body is entitled.

(c) Any decision of the commission or county land use decision-making body pursuant to this section shall be based on the decision-making criteria of section 205-17 in the case of the commission, and the following:

(1) The proposed reclassification must be measured against the importance of the land for agriculture based on the land's agricultural suitability and the stock of similarly suited lands;

(2) The proposed reclassification will not impair actual or potential agricultural production in the vicinity of the subject property or in the county in which it is located;

(3) The proposed reclassification or rezoning will not cause harm to the viability of existing agricultural activities, or adversely affect the viability of other existing agricultural operations that share infrastructure, processing, marketing, or other production-related costs or facilities with the agricultural activities;

(4) The proposed reclassification or rezoning will not cause fragmentation of surrounding important agricultural lands which reduces the parcel size below the scale for viable agricultural purposes; or

(5) The proposed reclassification or rezoning is justified by a need for additional lands for non-agricultural purposes.

(d) Any decision pursuant to this section shall include a written finding that on balance the public benefit from the proposed district boundary amendment, or zone change clearly outweighs the retention of the land in the agricultural district.

§205-F Periodic review and amendment of important agricultural lands maps. (a) The maps delineating important agricultural lands shall be reviewed at least once every ten years, and not more than once every five years by each respective county. Any review and amendment of the maps of important agricultural lands shall be conducted in accordance with this part.

(b) Each county shall submit its report and maps to the commission with the following information:

(1) The manner in which the land identified as important agricultural lands relates to the standards and criteria set forth in section 205-B; and

(2) How the important agricultural lands planning process relates to and supports the county's adopted land use plans.

(c) The final county recommendations and important agricultural lands maps shall be adopted and transmitted to the commission by county council resolution for action pursuant to the process set forth in section 205-C.

§205-G County identification of other lands within state agricultural and rural districts. As part of the planning process used by the counties to makes its recommendations for important agricultural lands, each county planning department may review and examine all the land within its jurisdiction that currently is included in the state agricultural and rural land use districts. In an appendix to its recommended important agricultural lands map, each county planning department may make recommendations regarding the appropriate land use designation for its non-important agricultural lands located in the State agricultural and rural districts (e.g., conservation, rural, urban, or agriculture). This non-important agricultural lands planning study shall be developed with full public input as a part of the important agricultural lands mapping process. Upon completion of the commission's consideration of and action on each county's recommendations regarding important agricultural land pursuant to section 205-B, each county may propose state boundary changes based upon its adopted general and community plans and its planning study for its non-important agricultural lands. If any county proposes such changes, the commission shall follow the process as set forth in section 205-H in considering such boundary amendment requests.

§205-H Amendments to land use district boundaries passed upon important agricultural lands planning process. (a) After the commission designates important agricultural lands and adopts maps, each county may request the commission to amend any state land use district boundaries that are (1) consistent with adopted county general and development plans and (2) consistent with the commission's designation of important agricultural lands. Requests for boundary amendments under this section shall be limited to lands which were subject to the comprehensive public process set forth in section 205- .

(b) The commission shall conduct at least one public hearing on the applicable county on the proposed amendment in accordance with chapter 92. The applicable county and the commission shall make maps showing the proposed boundary amendments and all supporting technical reports and planning documents available for public inspection prior to the hearing.

(c) The office of planning shall prepare written comments and provide oral testimony to the commission, presenting the State's recommendations and supporting rationale regarding the proposed district boundary amendments.

(d) In its review of the proposed boundary amendments, the commission shall specifically consider whether the county followed the procedures and guidelines set forth in section 205-B.

(e) In its review of the county request, the commission shall be guided by the decision-making criteria set forth in section 205-17, as applicable.

(f) The commission shall act on the county request for amendment to the land use district boundary within one hundred and twenty days of the date of receipt of a county request for reclassification.

(g) A change in land use district classification of a parcel or parcels resulting from a commission decision pursuant to this section shall be final.

(h) This section shall not apply to reclassification of lands that are designated important agricultural lands.

(i) The commission shall adopt rules pursuant to chapter 91, as necessary to implement this section.

§205-I Incentives for important agricultural lands. (a) When important agricultural lands are identified by the State pursuant to this statute, such lands and agricultural activity occurring on these lands shall be eligible for tax and agricultural program incentives and protections, to the extent they qualify, enacted by the State and the counties to promote agricultural viability and to ensure the long-term availability of important agricultural lands for agricultural use."

SECTION 3. Section 205-17, Hawaii Revised Statutes, is amended to read as follows:

"§205-17 Land use commission decision-making criteria. In its review of any petition for reclassification of district boundaries pursuant to this chapter, the commission shall specifically consider the following:

(1) The extent to which the proposed reclassification conforms to the applicable goals, objectives, and policies of the Hawaii state plan and relates to the applicable priority guidelines of the Hawaii state plan and the adopted functional plans;

(2) The extent to which the proposed reclassification conforms to the applicable district standards; [and]

(3) The impact of the proposed reclassification on the following areas of state concern:

(A) Preservation or maintenance of important natural systems or habitats;

(B) Maintenance of valued cultural, historical, or natural resources;

(C) Maintenance of other natural resources relevant to Hawaii's economy, including, but not limited to, agricultural resources;

(D) Commitment of state funds and resources;

(E) Provision for employment opportunities and economic development; and

(F) Provision for housing opportunities for all income groups, particularly the low, low-moderate, and gap groups; [and]

(4) The standards and criteria for reclassification or rezoning of important agricultural lands in section 205-__; and

[(4)] (5) The representations and commitments made by the petitioner in securing a boundary change."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2004.

INTRODUCED BY:

_____________________________

BY REQUEST