Relating To The Agribusiness Development Corporation.
Summary
HB1006 expands the statutory definition of “enterprise” under the Agribusiness Development Corporation (ADC) laws to expressly include agricultural tourism businesses, so long as tourism remains secondary to the farm’s principal agricultural activity. The bill defines agricultural tourism as visitor-oriented commercial activity on a working farm for enjoyment, education, or participation, and requires that at least 75% of the operation remain devoted to active farming. It also states that agricultural tourism must not interfere with nearby farm operations.
The measure further transfers all rights, powers, functions, and duties of the Agricultural Development Division of the Department of Agriculture to the ADC. It preserves existing rules, contracts, permits, appropriations, records, property, and personnel associated with those functions, while substituting references to the Department of Agriculture or its chairperson with the ADC or its executive director as appropriate. The bill is structured as a reorganization measure and includes a delayed effective date of July 1, 3000, which appears to function as a placeholder rather than a near-term implementation date.
Impact
HB1006 would amend Chapter 163D, Hawaii Revised Statutes, to broaden the types of businesses eligible for ADC support and financing by adding agricultural tourism to the definition of an “enterprise.” This could make farms offering tours, educational activities, or visitor experiences eligible for ADC assistance, provided they continue to meet the bill’s production thresholds. It also shifts statutory authority and related administrative functions from the Department of Agriculture’s Agricultural Development Division to the ADC, affecting how agricultural development programs are administered and which agency is responsible for implementing related laws and agreements.
Sentiment
The available voting history suggests the bill was generally well received in the Senate committees that considered it. It passed the Senate Economic Development and Technology Committee 4-1 with amendments, and later passed the Senate Ways and Means Committee unanimously, 12-0, unamended. No committee transcripts were provided, so the discussion record does not show detailed debate, but the vote pattern indicates broad support with some initial reservation or need for refinement in the first committee.
Contention
The main policy issue appears to be how far to extend public support for agricultural tourism without diluting the bill’s focus on core agricultural production. The bill’s 75% farming requirement and 25% cap on tourism activity suggest an effort to address concerns that tourism could overshadow farming or create conflicts with adjacent farms. The single dissenting vote in the first Senate committee may reflect caution about that balance, the transfer of functions from the Department of Agriculture to the ADC, or the scope of the ADC’s expanded role in financing mixed-use farm operations.