Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Water, Land, and Agriculture, to which was referred S.B. No. 537 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of general obligation bonds and appropriate the moneys therefrom to expand the Kahuku Agricultural Park.

Testimony in support of this measure was submitted by the two partners of Hawaiian Marine Enterprises, a research graduate student, the Hawaii Aquaculture Association, Pacific Harvest, and the Hawaii Farm Bureau. The Board of Agriculture submitted comments on the measure. Testimony in opposition to the measure was submitted by the Estate of James Campbell.

Your Committee finds that the Kahuku community has endured severe flooding, particularly in 1991. Thus far, the sparsely populated area has failed the Army Corps of Engineers' (Corps) "cost-benefit" analysis, which would allow the Corps to assist the community with the mitigation process. Another way for the Corps to undertake the flood control project would be if a federal agency owned the property and undertook an "ecological system restoration" project.

Campbell Estate seeks to sell its agricultural lands in Kuhuku, including eight hundred acres that currently hold agriculture and aquaculture industries, which provided fifty jobs and $3,000,000 in gross revenues to the state economy. The United States Fish & Wildlife Service (Fish and Wildlife) is in negotiations to buy the area, and intends to use the land for wetland conservation purposes and to expand their bird preservation area for four species of protected birds. If Fish and Wildlife purchases all of the property, the agriculture and aquaculture businesses, which have been feeding the birds, will be shut down.

Your Committee finds that if the State purchases the half of the property that is currently under production to maintain the agricultural park, leaving the other half for Fish and Wildlife, a compromise could be reached. Also, according to oral testimony from Hawaiian Marine Enterprises, the Corps said that ecological restoration can occur on state land as well as federal land.

Your Committee chair and two members have serious reservations about the State being able to purchase lands in a flood plain. Your Committee finds that more research is needed on this and other issues, but believes this measure should continue in the legislative process to promote further discussion.

As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 537 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.