STAND. COM. REP. NO. 269

Honolulu, Hawaii

RE:    S.B. No. 934

       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 S.B. No. 934 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 issue revenue bonds to purchase land in Central Oahu from the Galbraith Trust.

     Specifically, this measure:

     (1)  Authorizes the Agribusiness Development Corporation to issue revenue bonds to purchase agricultural lands in Central Oahu and owned by the Galbraith Trust;

     (2)  Appropriates funds to the Agribusiness Development Corporation for the purchase of agricultural lands in Central Oahu and owned by the Galbraith Trust;

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

     (4)  Allows the Agribusiness Development Corporation to lease these 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; and the Hawaii Farm Bureau Federation.  Testimony in opposition to this measure was submitted by Bank of Hawaii as Trustee of the Galbraith Trust.  The Department of Budget and Finance submitted comments.

     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 Central Oahu owned by the Galbraith Trust are some of the best and most productive agricultural lands in the State, but it is also located in an area that has potential for residential and urban development.  Bank of Hawaii, as Trustee of the Galbraith Trust indicated that dissolution of the Galbraith Estate has been initiated and hence, the sale of the Galbraith Estate holdings may soon be forthcoming.

     However, your Committee finds that enabling the Agribusiness Development Corporation to purchase agricultural lands owned by the Galbraith Trust, 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 owned by the Galbraith Trust, will ensure that these lands will remain in agriculture in perpetuity, and should be pursued with haste.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of consistency and style.

     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 S.B. No. 934, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 934, 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