STAND. COM. REP. NO. 401-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 3024
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred H.B.
No. 3024 entitled: 

     "A BILL FOR AN ACT RELATING TO REVOCABLE PERMITS FOR STATE
     AGRICULTURAL LEASES,"

begs leave to report as follows:

     The purpose of this bill is to support the cultivation of
agricultural lands by authorizing the Department of Land and
Natural Resources (DLNR) to negotiate long-term leases under
specific terms, conditions, and restrictions imposed under the
bill with certain permittees of agricultural land.

     A council member from Kauai County, the Hawaii Farm Bureau
Federation, the Kauai Economic Development Board, No ka 'oi
Plants, and an individual testified in support of the measure.
DLNR and an individual submitted testimony in opposition to this
measure.

     Your Committee recognizes the dilemma and concern that
farmers face due to the near expiration of their agricultural
leases on state lands.  This bill will enable these farmers to
secure necessary financing to make improvements to and maintain
their leased land, as well as ensure continued investment and
efforts in agricultural activity on such land.

     Upon consideration, your Committee has amended this bill by
giving the Board of Land and Natural Resources the option to
require the payment of annual lease rent based on fair market

 
 
                                 STAND. COM. REP. NO. 401-00
                                 Page 2

 
value from the lessee, provided that DLNR shall accept, in lieu
of cash payment or a part thereof, the appraised value of
improvements made (as determined by DLNR by rule) to the leased
property.

     As affirmed by the record of votes of the members of your
Committee on Agriculture that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
3024, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 3024, H.D. 1, and
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Agriculture,



                                   ______________________________
                                   FELIPE P. ABINSAY, JR., Chair