CONFERENCE COMMITTEE REP. NO. 49

Honolulu, Hawaii

                 , 2007

RE:    S.B. No. 837

       S.D. 2

       H.D. 2

       C.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam and 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. 837, S.D. 2, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

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 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 purchase privately owned agricultural lands in Kunia and Ewa with a combination of revenues derived through the issuance of general obligation bonds, general obligation reimbursable bonds, revenue bonds, and general fund appropriations;

     (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)  Allows the Agribusiness Development Corporation to purchase, accept, and maintain permanent conservation easements;

     (4)  Allows the Agribusiness Development Corporation to contract with a financial institution to provide lease management services, including the collection of lease rents and other moneys owed the corporation related to the lease of agricultural lands under the corporation's control; and

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

     Your Committee on Conference 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 on Conference 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 on Conference has amended this measure by:

     (1)  Deleting revenue bonds, general obligation bonds, and general obligation reimbursable bonds as financial vehicles that the Agribusiness Development Corporation may use to purchase lands in Kunia and Ewa;

     (2)  Changing the blank appropriation amount to $9,200,000 for the Agribusiness Development Corporation to purchase agricultural lands owned by private entities in Kunia and Ewa;

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

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and style.

     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. 837, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 837, S.D. 2, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ CLIFT TSUJI, Co-Chair	____________________________ RUSSELL S. KOKUBUN, Chair
____________________________ PONO CHONG, Co-Chair	____________________________ ROSALYN H. BAKER, Co-Chair