STAND. COM. REP. NO. 3057

Honolulu, Hawaii

RE:    H.B. No. 2292

       H.D. 1

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committees on Agriculture and Hawaiian Affairs and Water and Land, to which was referred H.B. No. 2292, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

beg leave to report as follows:

     The purpose of this measure is to expand the authority of the Agribusiness Development Corporation (ADC) and preserve valuable agricultural lands by, among other things:

     (1)  Specifying that the Legislature, through a bill enacted into law, may authorize ADC to acquire agricultural lands for the protection of agricultural lands, public land banking, or promotion of farm ownership and diversified agriculture;

     (2)  Specifying that the landowner who agrees to the sale of lands shall receive payment:

          (A)  In a lump sum;

          (B)  From revenues derived from the issuance of revenue bonds by the ADC; or

          (C)  Through an installment purchase agreement;

     (3)  Establishing requirements for the use of installment purchase agreements including the purchase of U.S. Treasury zero coupon bonds;

     (4)  Authorizing ADC to acquire specific agricultural lands located on Oahu and owned by the Galbraith Estate through a lump sum payment or an installment purchase agreement;

     (5)  Authorizing ADC to purchase, accept, and maintain permanent conservation easements, or transfer these easements to qualified land trust in accordance with the federal Natural Resources Conservation Service Farm and Ranch Lands Protection Program; and

     (6)  Allowing ADC to contract with certain financial institutions to provide lease management services when leasing ADC-controlled agricultural land.

     Testimony in support of this measure was submitted by the Hawaii Farm Bureau Federation, Kamehameha Schools, The Trust for Public Lands, HPC Foods, Ltd., Wahiawa Community and Business Association, and ILWU, Local 142.  The Agribusiness Development Corporation, Department of the Army, and one individual submitted testimony in support of the intent of this measure.  The Department of Budget and Finance submitted comments regarding this measure and Bank of Hawaii submitted information regarding this measure.

     Your Committees have amended this measure by amending the effective date to July 1, 2050, for the purpose of encouraging further discussion.

     As affirmed by the records of votes of the members of your Committees on Agriculture and Hawaiian Affairs and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2292, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2292, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________ CLAYTON HEE, Chair

____________________________ JILL TOKUDA, Chair