HAR §4-159-11. Eligibility for extension

** (a) The existing agricultural activity, farming operation, or agricultural enterprise operation shall meet at least three of the following criteria to qualify for extensions under this section: (1) Conforms with provisions of the Hawaii State Plan or the State Functional Plan for Agriculture; (2) Protects and conserves suitable agricultural lands within the land district; (3) Promotes diversified agriculture industry and development of new crops; (4) Increases the State's self-sufficiency of agricultural commodities and products; (5) Produces an agricultural commodity that contributes to reducing imported produce; (6) Ensures the continued availability of suitable agricultural lands in the land district; or (7) Conforms with any other agricultural uses that the board may deem worthwhile for the preservation of the diversified agricultural industry for the land district. Upon request, the administrator shall evaluate each encumbrance and determine whether or not a recommendation to the board for permission to negotiate a lease extension is justified. (b) Eligibility requirements. Holders of existing encumbrances shall meet at least four of the following requirements: 159-21 3620 4-159-12 (1) Have filed a general excise tax (state) G-49 form for the past seven years either with the state tax department or the Internal Revenue Service showing farming revenues; (2) Possess a general excise tax license from the state tax department and has filed tax returns on it; (3) Have maintained a viable agricultural enterprise operation; (4) Have not filed for bankruptcy during the term of the existing lease or not in default of more than six months rent or cited to be in violation of any lease terms, conditions, or covenants; (5) Possess an agricultural enterprise business financial plan, farm business financial plan or conservation plan; or (6) If applicable, are an approved co-operator with the state soil and water conservation district program under chapter 180, HRS. The administrator shall request each lessee or permittee to file an affidavit showing that existing holders of encumbrance meet the above criteria or submit proof, whichever is acceptable. Any willful violation of this requirement shall be cause for the cancellation of the existing encumbrance and forfeiture of the land to the department without due course. [Eff JAN 23 2026] (Auth: SLH 2022, Act[r] 221, §7) (Imp: SLH 2022, HRS §141D-7, §8)