Senate committees advance SB1562 to pair housing with farmsteads; bill cleared with amendments

A joint hearing of the Senate Committee on Agriculture and Environment and the Senate Committee on Housing advanced SB1562 on Feb. 3, a bill that would create a Combined Housing Operational Agriculture Mobilization Program and a tax credit for land donated to the program to help bona fide farmers live and farm on agricultural lands.

Committee chairs recommended passage with amendments after receiving testimony from state agencies, farm groups and tax policy organizations. The measure was advanced by a voice vote in both committees; committees recorded support and adopted the chair’s recommendation.

The measure’s supporters said it responds to farmers’ housing needs. Brian Miyamoto of the Hawaii Farm Bureau said the bureau “absolutely support[s] affordable housing and access to housing for our farmers and farm workers,” while also urging clarification about which state agency should administer the program and how it fits the agency mission.

Kelsey Nagata, Deputy Attorney General, called attention to ambiguities in the measure’s language about the Department of Agriculture’s holding of lands and said the attorney general’s office submitted written recommendations. Nagata told the committees: “Generally, committees should be attached to 1 of the principal departments as provided in the constitution. And further, there is some ambiguities in the bill on page 5, lines 3 through 5, which is unclear as to how the Department of Agriculture will hold the lands under this program.”

Hunter Hevelin of the Hawaii Farmers Union urged tying tax-credit amounts to land quality and clarifying whether the program targets new and beginning farmers or longer-term occupants. Hevelin noted that dedicated lands under other programs have sometimes been lower-quality tracts and said program design should ensure lands can sustain production.

The committees adopted amendments recommended by the Department of Taxation, the attorney general’s office and the Hawaii Farmers Union. The changes recorded in committee included adding a provision to establish “an advisory committee within the Department of Agriculture,” clarifying the Department of Agriculture’s authority to acquire agricultural lands, specific edits to the tax-credit language and a deferred effective date set in committee to July 1, 2050.

The committees’ formal action summary notes the chair’s recommendation to “pass with amendments” and records the outcome as adopted in both committees. Senators recorded as voting in favor in committee proceedings included the committee chairs and the senators present; some members were excused.

Why it matters: SB1562 aims to create a new tool to reduce housing barriers for farmers, pairing land conservation or donation incentives with on-site housing. The bill’s final design will determine which agency manages land holdings, how long housing is tied to active farming, and what kinds of land qualify for the credit.

Next steps: The bill passed out of the two committees with amendments and will proceed to further legislative steps. Committee documents note requested funding for Department of Agriculture positions and resources for the program, with those appropriation amounts to be addressed in committee reports.