Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1268, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to require the Agribusiness Development Corporation (Corporation) to purchase the agricultural lands owned by the Galbraith Estate in Waialua on Oahu.

The measure also allows the Corporation to contract with financial institutions to provide lease management services for agricultural lands and allows the Corporation to purchase, accept, and maintain permanent conservation easements.

Your Committee finds that, by purchasing prime agricultural lands in Waialua, Oahu, the State ensures the continued growth of diversified agriculture. The purchase will also support and retain the rural lifestyle of agricultural communities, broaden the State's agricultural economic base, improve our food security, and preserve green, open space for our residents and visitors.

Your Committee also finds that, by allowing the Corporation to provide lease management services and to purchase, accept and maintain permanent conservation easements, the State will be providing a promising opportunity for long-term farming to enhance diversified agriculture in the State.

Your Committee has amended the bill by replacing the directive that mandates the purchase of the Galbraith Estate with language that authorizes the purchase of the Estate. This amendment will provide the Corporation with the necessary flexibility to purchase the Estate at a fair and equitable price. Your Committee has also amended the bill by making technical, nonsubstantive amendments for the purposes of style and clarity.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1268, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1268, S.D. 2.