Hawaii Senate Bill SB1657

Hawaii 2026 Regular Session

• Introduced: 1/23/25
• Refer: 1/27/25
• Report Pass: 2/13/25
• Refer: 2/13/25
• Report Pass: 2/28/25
• Engrossed: 3/4/25
• Refer: 3/6/25
• Report Pass: 3/14/25
• Refer: 3/14/25
• Report Pass: 3/21/25
• Refer: 3/21/25

Caption

RELATING TO THE AGRIBUSINESS DEVELOPMENT CORPORATION.

Summary

SB1657 amends the powers of the Hawaii Agribusiness Development Corporation (ADC) under section 163D-4 of the Hawaii Revised Statutes. The central change authorizes the ADC, under specified conditions, to acquire real property or interests in real property by condemnation (eminent domain) for immediate or future use related to its statutory purposes. The bill also provides that any property acquired through condemnation may not later be transferred or taken for another public use without the ADC’s consent. The measure leaves intact the ADC’s broader authority to acquire, develop, lease, and manage property, infrastructure, and water facilities for agricultural purposes, and it retains express protections for constitutionally and statutorily protected water rights. Those protections include safeguards for Native Hawaiian traditional and customary rights, Hawaiian Homes Commission Act rights, and water interests held by organizations serving people of Hawaiian ancestry, as well as a requirement that all water use comply with chapter 174C and other applicable law.

Impact

The bill would expand the ADC’s statutory toolkit by expressly adding condemnation authority to chapter 163D, aligning the corporation more closely with other public entities that can assemble land for public-purpose projects. It would also strengthen the ADC’s control over condemned property by limiting later transfer or diversion to other public uses without its consent. In practical terms, the bill could affect landowners, agricultural developers, and public agencies involved in land acquisition for agricultural infrastructure, while preserving existing water-rights limitations and related legal protections.

Sentiment

The bill appears to have generally favorable momentum in committee, passing the Senate Economic Development and Technology Committee and the Senate Judiciary Committee unanimously with amendments. However, the House floor report shows some reservations and opposition, with two representatives voting no and one voting aye with reservations, suggesting that while the bill was broadly supported, the condemnation/eminent-domain authority raised concerns for some members. The amended version advancing to Finance indicates continued interest in refining the measure rather than rejecting it outright.

Contention

The main point of contention is the grant of eminent domain power to the ADC, which can raise concerns about government taking of private property and the scope of public use. The bill’s language limiting later transfer of condemned property without ADC consent may also be viewed as strengthening agency control in a way that some legislators could find too broad. At the same time, the bill explicitly preserves Native Hawaiian water rights and customary rights, indicating that supporters likely wanted to reassure stakeholders that the new property authority would not override existing constitutional and statutory protections.