STAND. COM. REP. NO. 1120

Honolulu, Hawaii

RE:    H.B. No. 337

       H.D. 2

       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 Water, Land, Agriculture, and Hawaiian Affairs, to which was referred H.B. No. 337, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose of this measure is to promote Hawaii's diversified agricultural industry and protect its agricultural lands for long term agricultural activities by authorizing the Agribusiness Development Corporation to purchase and lease privately owned agricultural lands in Kunia and Ewa.

     Specifically, this measure:

     (1)  Authorizes the Agribusiness Development Corporation to issue revenue bonds to purchase privately owned agricultural lands in Kunia and Ewa;

     (2)  Appropriates funds to the Agribusiness Development Corporation for the purchase of agricultural lands in Kunia and Ewa that are owned by private entities;

     (3)  Enables the Agribusiness Development Corporation to contract with banks for lease management services; and

     (4)  Allows the Agribusiness Development Corporation to lease the Kunia and Ewa agricultural lands under its control for up to fifty-five years.

     Testimony in support of this measure was submitted by the College of Tropical Agriculture and Human Resources, University of Hawaii; the Agribusiness Development Corporation; the Department of Planning and Permitting, City and County of Honolulu; the Hawaii Farm Bureau Federation; the Hawaii Agriculture Research Center; and the Hawaii Crop Improvement Association.

     Protecting agricultural lands is fundamental to Hawaii's future agricultural industry and sustainable food supply.  Growing food locally improves Hawaii's food security, and conserves and protects green, open spaces.  The agricultural lands in Kunia and Ewa are some of the best and most productive agricultural lands in the State, but it is also located in an area that has a great demand for residential and urban development.

     Your Committee finds that enabling the Agribusiness Development Corporation to purchase agricultural lands in Kunia and Ewa, and then lease those lands for up to fifty-five years will ensure that these lands will remain for agricultural production.  Your Committee believes that the purchase of strategic parcels of agricultural lands, such as the parcels in Kunia and Ewa, will ensure that these lands will remain in agriculture in perpetuity.

     Your Committee has amended this measure by:

     (1)  Adopting the suggestion made by the Hawaii Agriculture Research Center by adding the agricultural area north of Wahiawa and Schofield to the scope of this measure;

     (2)  Changing the effective date of this measure from July 1, 2020, to July 1, 2007; and

     (3)  Making technical, nonsubstantive amendments for the purposes of style and consistency.

     Your Committee believes that this measure, as amended, fulfills the intent of this measure, which is to ensure that the agricultural lands in Central Oahu will remain for agricultural activities, and promote a viable and diversified agricultural industry in Hawaii.

     As affirmed by the record of votes of the members of your Committee on Water, Land, Agriculture, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 337, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 337, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water, Land, Agriculture, and Hawaiian Affairs,

____________________________

RUSSELL S. KOKUBUN, Chair