Section 171-67 - Restrictions; conditionsIn addition to other restrictions or conditions that may be established by the board to carry out the purpose of this chapter and the state constitution, each sale, lease, or lease with option to purchase, of a farm lot or ranch lot shall be subject to the following conditions, which shall be covenants running with the land:
(1) The lot shall be used for farm purposes only;(2) The purchaser or lessee shall reside on the premises granted; provided that with the consent of the board, the purchaser or lessee may live off the premises if the purchaser's or lessee's residence is within a reasonable distance therefrom;(3) The purchaser or lessee shall derive the major portion of the purchaser's or lessee's total annual income from the production of the crops or products for which production the land is granted to the purchaser or lessee; provided that this restriction shall not apply if the purchaser or lessee becomes enfeebled or is widowed;(4) In the case of a lease, those provisions set forth in sections 171-35, 171-36 and 171-37, unless otherwise specifically provided in this section;(5) In the case of a fee simple sale, the improvement required and the specific use or uses intended;(6) For a period of five years after the issuance of a patent or lease, the purchaser or lessee shall not sell, sublet, assign, transfer, or in other manner dispose or encumber the whole or any part of the farm lot to any person not qualified to take a farm lot except by way of mortgage, testamentary bequest or devise, intestate succession, or except to a purchaser at or after sale upon the foreclosure of a mortgage;(7) Within two years after the issuance of a patent or lease, the purchaser or lessee shall submit a farm plan to the department or the responsible governing agency exercising enforcement and jurisdictional oversight;(8) Within five years after the issuance of a patent or lease and every five years thereafter, the purchaser or lessee shall submit one of the following to the department: (A) Documentation of a current organic certification from the United States Department of Agriculture;(B) A current plan from the United States Department of Agriculture;(C) Documentation of a current food safety certification from the United States Department of Agriculture; or(D) Receipts for expenditures made within the most recent five years demonstrating an investment of not less than $10,000 in farm equipment, fertilizers, and soil amendments for use on the farm lot; provided that this requirement shall not apply if the purchaser or lessee becomes enfeebled or is widowed or experiences significant economic hardship directly caused by a disaster; and
(9) Each year, the purchaser or lessee shall submit to the department:(A) Excise tax receipts demonstrating annual sales of food generated from the farm lot totaling not less than $1,000;(B) Evidence of donations of food generated from the farm lot made to one or more organizations exempt from federal taxation under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and valued at not less than $1,000; or(C) A combination of sales and donations under subparagraphs (A) and (B) totaling not less than $1,000; provided that this requirement shall not apply if the purchaser or lessee becomes enfeebled or is widowed or experiences significant economic hardship directly caused by a disaster.
The violation of any restrictions or conditions established under this section shall be sufficient for the board, upon failure of the purchaser or lessee within a reasonable period of time to remedy the default after notice thereof as provided in section 171-20, to take possession of the premises without demand or previous entry and with or without legal process and thereby determine the estate, subject to the provisions contained in section 171-21.
Amended by L 2024, c 194,§ 2, eff. 7/3/2024.L 1962, c 32, pt of §2; am L 1965, c 239, §33; Supp, § 103A-63; HRS § 171-67; gen ch 1985