CONFERENCE COMMITTEE REP. NO.106-02
Honolulu, Hawaii
, 2002
RE: H.B. No. 2018
H.D. 1
S.D. 2
C.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 2018, H.D. 1, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO AGRICULTURAL LEASES,"
having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.
The purpose of this bill is to encourage lessees of State agricultural lands whose leases are about to expire to maintain productive use of these lands by providing greater certainty in their agricultural leases. This bill allows lessees, within five years of lease expiration, to petition the Department of Land and Natural Resources (DLNR) to issue a public notice to determine whether other persons are interested in bidding for a lease on the property. If the existing lessee is outbid, the new tenant shall compensate the existing lessee for the residual value of any improvements made. If no one is interested in bidding for the lease, DLNR shall negotiate a new lease with the existing lessee not to exceed the term of the previous lease.
Your Committee on Conference considered a simpler and less time-consuming process that involves the immediate re-auction of the lease. Upon further consideration, your Committee on Conference has amended this bill by deleting its substance and inserting provisions that:
(1) Allow any qualified lessee of an agricultural lease, which has run at least thirty years and has less than five years remaining, to apply to DLNR for the re-auction of the lease;
(2) Authorize DLNR to re-auction the lease with the written consent of any person or entity with an interest in, or subordinate to, the lease;
(3) Authorize the Board of Land and Natural Resources to:
(a) Reject any application for re-auction if it determines that the land can be used for a public purpose or for a higher, better, or more appropriate use; and
(b) Establish additional qualification criteria and requirements for qualified lessees;
(4) Require the qualified lessee to sign an agreement specifying that the existing lease shall be canceled at the conclusion of the re-auction, and that the qualified lessee shall indemnify the State from any claims resulting from the early termination of the existing lease; and
(5) Repeal these provisions on July 1, 2007.
As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 2018, H.D. 1, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 2018, H.D. 1, S.D. 2, C.D. 1.
Respectfully submitted on behalf of the managers:
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ON THE PART OF THE SENATE |
ON THE PART OF THE HOUSE |
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____________________________ JAN YAGI BUEN, Chair |
____________________________ EZRA KANOHO, Co-Chair |
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____________________________ LORRAINE R. INOUYE, Co-Chair |
____________________________ FELIPE P. ABINSAY, JR., Co-Chair |
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____________________________ BOB NAKASONE, Co-Chair |
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