Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Agriculture, to which was referred H.B. No. 2777 entitled:

begs leave to report as follows:

The purpose of this bill is to stabilize agricultural park lease rents by establishing that, for reopenings of any agricultural park lease, the annual lease rent shall be determined by appraisal based on highest and best use determined through an income capitalization approach considering the potential agricultural yield from the property.

The Hawaii Farm Bureau Federation, East Oahu Farmer's Association, and the Hawaii Agriculture Research Center supported this bill. The Department of Agriculture offered comments.

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. 2777 and recommends that it pass Second Reading and be referred to the Committee on Finance.