Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 255, S.D. 2, H.D. 1, entitled:

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 measure is to invalidate prospective land use agreements that purport to restrict or prohibit agricultural activities on lands classified as agricultural by the Land Use Commission, with the exception of restrictions intended to protect environmental and cultural resources.

Your Committee on Conference finds that this measure serves overwhelmingly important public interests in maintaining open space and agricultural lands. Agriculture preserves Hawaii's unique rural communities, generates income for farmers, their employees, and their families, and provides sustenance for Hawaii's people. Your Committee on Conference also finds that a covenant currently may restrict a farmer from growing anything beyond a certain height. This type of covenant is normally found only in housing subdivisions, and is overly restrictive to a bona fide farming operation in an agricultural district.

Your Committee on Conference amended the measure by adding a purpose clause to show that it appreciates that the Unites States and Hawaii Constitutions protect against the deprivation of private property for public use without just compensation and due process of law. The purpose clause further explains, using legislative history, the State's constitutional recognition of the importance of promoting and preserving agriculture, and the Constitution's allowance that a person may contract away a legal right so long as that contract does not impact anyone else's legal rights nor be "contrary to the public good". Thus, a covenant that violates the constitutional intent of preserving and conserving agricultural lands and uses in the State cannot be in the public good.

Your Committee has also amended the measure by:

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 S.B. No. 255, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 255, S.D. 2, H.D. 1, C.D. 1.