Hawaii Senate Bill SB1325

Hawaii 2026 Regular Session

• Introduced: 1/23/25
• Refer: 1/27/25
• Report Pass: 2/12/25
• Refer: 2/12/25

Caption

RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION.

Summary

SB1325 amends Hawaii law governing the Agribusiness Development Corporation (ADC) by creating a new statutory definition of “agricultural tourism” and adding that activity to the definition of “enterprise.” Under the bill, agricultural tourism is commercial activity on a working farm that is secondary to the farm’s principal agricultural use and does not interfere with surrounding farm operations. By placing agricultural tourism within the ADC’s “enterprise” definition, the bill would allow ADC to consider and financially support farming businesses that include visitor-oriented activities such as education, enjoyment, or participation on farms. The bill also preserves the existing framework for ADC-supported enterprises: businesses must have their principal place of business in Hawaii and be engaged in agricultural crop development, value-added products, enhancement of agricultural commodities, or productive use of agricultural facilities, with the majority of production intended for export. SB1325 would therefore expand the kinds of farm-related projects eligible for ADC support without changing the agency’s broader mission. The measure is set to take effect on July 1, 2050, as drafted in the bill text.

Impact

SB1325 would amend section 163D-2, Hawaii Revised Statutes, by adding a new definition of “agricultural tourism” and revising the definition of “enterprise” to expressly include businesses engaged in agricultural tourism. The practical effect is to broaden the ADC’s authority to finance or otherwise support qualifying agribusinesses that combine farming with visitor activities, while keeping those activities subordinate to the agricultural use of the land. This change could affect farmers, agritourism operators, and ADC funding decisions, but it does not appear to alter land use rules generally or create a standalone regulatory program outside the ADC statute.

Sentiment

The available voting history suggests generally favorable support for the bill. The Senate Economic Development and Technology Committee passed SB1325 with amendments by a 5-0 vote, and the bill was subsequently reported and passed second reading as amended before referral to Ways and Means. No committee transcript excerpts were provided, so the record available here shows support but does not include detailed floor or committee debate.

Contention

The main policy issue implicit in the bill is whether agricultural tourism should be treated as part of the state’s agribusiness development framework. Supporters appear to view agritourism as a way to diversify farm income and strengthen agricultural businesses, while any concerns would likely center on ensuring that tourism remains secondary to farming and does not disrupt surrounding farm operations. Because the bill’s definition expressly limits agricultural tourism to accessory, non-interfering activity, the measure seems designed to address those concerns directly. No specific opposition is reflected in the provided vote record.