STAND

STAND. COM. REP. NO. 1259

Honolulu, Hawaii

, 2005

RE: S.B. No. 1268

S.D. 2

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Agriculture and Water, Land, & Ocean Resources, to which was referred S.B. No. 1268, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

beg leave to report as follows:

The purpose of this bill is to preserve agricultural lands and improve administration of the Agribusiness Development Corporation (ADC) by:

(1) Authorizing ADC to issue revenue bonds to purchase agricultural lands located in the Waialua area on Oahu and owned by Galbraith Estate;

(2) Allowing ADC to purchase, accept, and maintain permanent conservation easements in accordance with the Natural Resources Conservation Service farm and ranch lands protection program; and

(3) Allowing ADC, when leasing ADC-controlled agricultural lands, to contract with certain financial institutions to provide lease management services.

The Hawaii Farm Bureau Federation, Hawaii Agriculture Research Center, ILWU Local 142, and a concerned individual supported this bill. ADC supported the intent of this bill.

Your Committees have amended this measure by deleting its contents and inserting the substantive contents of H.B. No. 330, H.D. 1, with amendments. As amended, this bill:

(1) Requires ADC to obtain the agricultural lands located in the Waialua area on Oahu and owned by Galbraith Estate and allows ADC to purchase the agricultural lands through the issuance of revenue bonds;

(2) Allows ADC, when leasing ADC-controlled agricultural lands, to contract with certain financial institutions to provide lease management services;

(3) Allows ADC to purchase, accept, maintain, and enforce permanent conservation easements in accordance with the Natural Resources Conservation Service farm and ranch lands protection program; and

(4) Establishes that, for lands in central Oahu acquired under this bill, the agricultural leases shall be for not less than 55 years.

As affirmed by the records of votes of the members of your Committees on Agriculture and Water, Land, & Ocean Resources that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1268, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1268, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Water, Land, & Ocean Resources,

____________________________ EZRA R. KANOHO, Chair		____________________________ FELIPE P. ABINSAY, JR., Chair