STAND. COM. REP. NO.  766-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2293

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2293 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose of this bill is to improve the operational flexibility of the Agribusiness Development Corporation (ADC) and preserve valuable agricultural lands by, among other things, authorizing ADC to:

     (1)  Acquire specific agricultural lands located on Oahu and owned by the Galbraith Estate through a combination of general fund appropriations and revenue bonds issued by ADC with the approval of the Governor;

     (2)  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

     (3)  Contract with certain financial institutions to provide lease management services when leasing ADC-controlled agricultural land.

     Kamehameha Schools, Hawaii Farm Bureau Federation, and The Trust for Public Land supported this bill.  The Department of the Army, Department of Budget and Finance, ADC, Office of Hawaiian Affairs, Bank of Hawaii, and a concerned individual submitted comments.

     Your Committee has amended this measure by:

     (1)  Clarifying that ADC submit a progress report on its actions to obtain the lands no later than twenty days prior to the convening of the Regular Session of 2009;

     (2)  Changing its effective date to July 1, 2020, to encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2293, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2293, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair