STAND. COM. REP. NO. 1521

Honolulu, Hawaii

RE:    H.B. No. 119

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 119, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURAL WATER SYSTEMS,"

begs leave to report as follows:

     The purpose of this measure is to exempt from the Uniform Land Sales Practices Act the disposition of an agricultural water system for irrigation of agricultural lands to the Agribusiness Development Corporation.

     Your Committee received comments in support of this measure from the Agribusiness Development Corporation and the Kamehameha Schools.

     Your Committee finds that without this exemption, any disposition of an agricultural irrigation system, including real and personal property spread over large land areas, would require the subdivision of the system, including its collection source or reservoir and extending to, in most cases, lengthy flume and ditch works stretching for miles.  This subdivision requirement would be so time-consuming and expensive that any disposition of the irrigation system would in all probability be abandoned, to the extreme detriment of the agricultural industry.  You Committee believes that this exemption is vital to the agricultural industry in the State.

     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 H.B. No. 119, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair