Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Agriculture, to which was referred H.B. No. 1089, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to extend the lapsing date of funds appropriated by Act 117, Session Laws of Hawaii 1999, as amended, to June 30, 2003. These funds are being used for the development and completion of an agricultural subdivision in the Hamakua district on the island of Hawaii.

Your Committee received testimony in favor of this measure from the Agribusiness Development Corporation, Hamakua County Farm Bureau, the Hawaii Island Board Member to the Agribusiness Development Corporation, and one individual.

Your Committee finds that the Hamakua agricultural subdivision project makes available additional acreage for intensive agricultural production thus providing new opportunities for further economic development and diversification in the Hamakua, Hawaii district. This measure facilitates the completion of this project.

As currently drafted, this measure may be vulnerable to challenges that it is unconstitutional. Article VII, section 11, of the Hawaii State Constitution states that "[n]o appropriation shall be made for a period exceeding three years." The current draft of this measure extends the authority to expend and encumber the funds another two years. The total period of the original appropriation may be calculated to be four years in violation of the Hawaii State Constitution. In recognition of this vulnerability, your Committee believes that the Senate's version of this measure would be more appropriate to ensure funding for the project is not jeopardized.

Therefore, your Committee has amended this measure by replacing its contents with the Senate version which:

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. 1089, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1089, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.