STAND. COM. REP. NO. 3369

Honolulu, Hawaii

RE:    H.B. No. 2293

       H.D. 1

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 2293, H.D. 1, 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 improve the operational flexibility of the Agribusiness Development Corporation to preserve valuable agricultural lands.

     Specifically, this measure:

     (1)  Authorizes the Agribusiness Development Corporation to:

          (A)  Purchase, accept, and maintain permanent conservation easements or transfer the easements to a qualified land trust;

          (B)  Contract with financial institutions to provide lease management services;

          (C)  Acquire agricultural lands for the protection of agricultural lands, public land banking, or the promotion of farm ownership and diversified agriculture by lump sum or installment purchase agreement, including lands on Oahu owned by the Galbraith Estate;

          (D)  With the approval of the Governor, issue revenue bonds to finance acquisition of the agricultural lands; and

          (E)  Lease the agricultural lands acquired pursuant to the proposed new section 163A, Hawaii Revised Statutes, for up to fifty‑five years;

     (2)  Authorizes the Department of Land and Natural Resources to exercise its power of eminent domain to acquire the lands on Oahu owned by the Galbraith Estate if the Agribusiness Development Corporation does reach an agreement for its purchase within a reasonable time; and

     (3)  Appropriates funds out of the general revenues of the State to purchase the lands on Oahu owned by the Galbraith Estate.

     The Agribusiness Development Corporation, Hawaii Farm Bureau Federation, Trust for Public Land, and one individual submitted testimony in support of this measure.  The Department of Budget and Finance submitted comments.

     Your Committee finds that this measure will further the State's responsibility under article XI, sections 3, 4, and 10 of the state constitution to, among other things, conserve and protect agricultural lands, promote diversified agriculture, increase agricultural self‑sufficiency, and assure the availability of agriculturally suitable lands.

     Upon further consideration, your Committee has amended this measure by:

     (1)  Clarifying in section 7 of the measure that the Agribusiness Development Corporation is also authorized to issue revenue bonds, with the approval of the Governor, to acquire agricultural lands for the protection of agricultural lands, public land banking, or the promotion of farm ownership and diversified agriculture; and

     (2)  Making technical, nonsubstantive changes for the purposes of clarity, consistency, and style.

     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 H.B. No. 2293, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2293, H.D. 1, S.D. 2.

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

____________________________

ROSALYN H. BAKER, Chair