Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 167, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to establish that, for rental reopenings of state agricultural leases, fair market rental shall be determined through an income capitalization approach that considers the potential agricultural yield from the property.

The Hawaii Agriculture Research Center, Big Island Farm Bureau, and the Hawaii Farm Bureau Federation testified in support of this measure. The Department of Land and Natural Resources opposed this bill. The Department of Agriculture provided comments.

Your Committee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 167, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 167, H.D. 2.