STAND. COM. REP. NO. 831

Honolulu, Hawaii

RE:    S.B. No. 837

       S.D. 2

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 S.B. No. 837, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose of this measure is to promote and preserve the agricultural industry in the State.

     Specifically, this measure:

     (1)  Authorizes the Agribusiness Development Corporation to:

          (A)  Issue revenue bonds for the purchase of certain lands in Kunia, Oahu;

          (B)  Grant agricultural leases on the acquired lands with terms of not more than fifty-five years;

          (C)  Purchase, accept, and maintain permanent conservation easement; and

          (D)  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

     (2)  Makes an appropriation to be expended by the Agribusiness Development Corporation for the purchase of agricultural lands in Kunia, Oahu.

     Your Committee received comments in support of this measure from the University of Hawaii at Manoa, College of Tropical Agriculture and Human Resources; City and County of Honolulu, Department of Planning and Permitting; Hawaii Agriculture Research Center; and Hawaii Crop Improvement Association.  The Agribusiness Development Corporation submitted comments.

     Your Committee finds that this measure will allow the Agribusiness Development Corporation to become more aggressive in its efforts to promote and preserve agricultural activities in central and west Oahu.  It further gives the Agribusiness Development Corporation the ability to contract for lease management services, allowing it to concentrate on its mandate to promote and preserve agricultural industries in the State.

     Your Committee amended this measure by:

     (1)  Adding language directing the Revisor of Statutes to insert the appropriate number of this Act in section 4 of the bill in printing this Act; and

     (2)  Making technical nonsubstantive changes for purpose of clarity and consistency.

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

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

____________________________

ROSALYN H. BAKER, Chair