Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Agriculture, to which was referred H.B. No. 543 entitled:

begs leave to report as follows:

The purpose of this bill is to exempt state lands, under the control of other public agencies, that are transferred to the Agribusiness Development Corporation (ADC) from the provisions of the Procurement Code; Grants and Subsidies regulations; Administrative Procedures; the chapter on Public Lands; and other similar laws that would otherwise apply to a state agency with respect to the lands. In addition, this bill makes investments, loans, or the use of funds by the ADC vested with private assets acquired by the ADC, as well as state lands transferred to ADC, exempt from the regulation of Purchases of Health and Human Services contracts provided for in Chapter 103F, Hawaii Revised Statutes (HRS).

The Hawaii Agriculture Research Center, Kauai County Farm Bureau, Hawaii Farm Bureau Federation, Gay & Robinson, Inc., and Syngenta Seeds, Inc., supported this bill. ADC supported the intent of this measure.

Your Committee notes that this measure provides ADC with the flexibility needed to efficiently dispose of public lands for the benefit of farmers and other citizens who rely on the ADC. Currently, private lands held by the ADC are exempt from public land regulation and requirements under chapter 171, HRS. This measure affords the same exemptions from regulations of chapter 171, HRS, such as the exemption from the public land auctioning process for state lands leased to the ADC.

Your Committee notes that ADC offered testimony in support of the intent of this measure, but indicated that this objective would be better achieved if the bill amended section 171-2, HRS, instead of section 163D-6, HRS.

In light of this information, your Committee has amended this measure by deleting its substance and inserting provisions amending section 171-2, HRS. As amended, this bill exempts from the definition of public lands those lands that are set aside by the Governor for the ADC and lands leased to the ADC by any department or agency from public land regulation.

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. 543, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 543, H.D. 1, and be referred to the Committee on Finance.