STAND. COM. REP. NO.  1183

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 337

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 337, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose of this bill is to preserve agricultural lands on Oahu by authorizing the Agribusiness Development Corporation (ADC) to purchase, via general funds or revenue bonds, agricultural lands located in the Kunia or Ewa areas on Oahu, or both.  In addition, this bill provides additional flexibility to ADC by allowing it to:

     (1)  Purchase, accept, and maintain permanent conservation easements in accordance with the Natural Resources Conservation Service Farm and Ranch Lands Protection Program; and

     (2)  When leasing ADC-controlled agricultural land, contract with a financial institution that is transacting business in this state to provide lease management service.

     The University of Hawaii, Department of Planning and Permitting of the City and County of Honolulu, Hawaii Crop Improvement Association, Hawaii Farm Bureau Federation, and Maui County Farm Bureau supported this bill.  ADC and the Hawaii Agriculture Research Center supported the intent of this measure. 

     Your Committee has amended this measure by:

     (1)  Allowing ADC to transfer the permanent conservation easements to a qualified land trust;

     (2)  Changing its effective date to July 1, 2020, to encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 337, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 337, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair