Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2479, H.D. 1, entitled:

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to propose an amendment to Article VII, section 12, of the Hawaii State Constitution, to authorize the State to issue special purpose revenue bonds and use the proceeds from the bonds to assist agricultural enterprises.

In 2005, the Legislature passed Act 183, Session Laws of Hawaii 2005, which provides a process for identifying and designating important agricultural lands in Hawaii. As a part of Act 183, the Legislature developed a process for the long-term retention of important agricultural lands for agricultural uses by creating incentives. Your Committee on Conference finds that encouraging agricultural development will provide positive environmental, social, and economic benefits to the State, and this measure will provide one such incentive for preserving important agricultural lands. Your Committee on Conference has amended this measure by specifically only allowing agricultural enterprises serving important agricultural lands.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2479, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2479, H.D. 1, C.D. 1.