STAND. COM. REP. NO. 366

Honolulu, Hawaii

, 2001

RE: S.B. No. 605

S.D. 1

 

 

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 S.B. No. 605 entitled:

"A BILL FOR AN ACT RELATING TO STATE LEASES,"

begs leave to report as follows:

The purpose of this measure is to allow current agricultural lessees a right of first preference to re-lease the property and authorize the Department of Land of Natural Resources to negotiate long-term leases with holdover agricultural lessees.

Your Committee received testimony in favor of this measure from the Hawaii Farm Bureau Federation, Hawaii Export Nurseryman Association, and Pineapple Growers Association of Hawaii. Your Committee received testimony in opposition to this measure from the Department of Land and Natural Resources, Hawai'i Forestry Industry Association, and one individual.

Your Committee finds that many agricultural land lessees currently face an uncertain future as the expiration of their leases nears. Currently, upon the expiration of a lease, the Department of Land and Natural Resources may extend the lease for one year and allow month-to-month tenancy thereafter. The lessee is then left in a precarious position with the possibility of losing the land in a public auction.

Current law does not adequately address the needs and concerns of agricultural lessees in a manner that supports and encourages the development and growth of Hawaii's agricultural industry. Of primary concern are the following:

(1) Upon approaching the expiration of an agricultural lease, a new lease may not be issued to the current lessee except by public auction;

(2) Extension of a lease is authorized only if the lessee obtains a loan for improvements; and

(3) The land administrator has the special and significant responsibility of being responsive to the needs and concerns of agricultural and other lessees so that decisions are rendered to further public interest, advance the objectives of the Hawaii state plan, and favorably impact the State's socio-economic well-being.

Your Committee has amended this measure by replacing its contents with provisions that:

(1) Authorize the Board of Land and Natural Resources to extend or enter into a new agricultural, aquaculture, mariculture, silviculture, livestock, or pasture lease with a lessee under certain circumstances and without a public auction; and

(2) Convert the position of administrator of the land division of the department of land and natural resources to an exempt position that is subject to appointment by the governor and confirmation by the senate.

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 S.B. No. 605, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 605, S.D. 1, and be referred to the Committee on Judiciary.

 

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

____________________________

JAN YAGI BUEN, Chair