STAND. COM. REP. NO. 691

Honolulu, Hawaii

RE:    S.B. No. 1345

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 1345 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose of this measure is to provide fair compensation and an automatic lease extension to protect a lessee's interest in state land that is withdrawn, taken, or condemned and prevents the lessee from using the land as originally intended.

     Your Committee received eight written comments on this measure.  Copies of written comments submitted are available for review on the Legislature's website.

     Your Committee finds that the Saddle Road widening project in the county of Hawaii, is a good example of a taking of leased land with inadequate compensation for the lessee.  In that project, the Department of Land and Natural Resources established conservation easements on leased land used for pasture or special livestock.  As a result of the taking, the lessee ranchers suffered serious financial losses over an extended period of time.  The intent of this measure is to prevent similar situations as the Saddle Road project from occurring in the future and to properly compensate affected lessees.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 2090, to facilitate further discussion on the measure; and

     (2)  Making technical nonsubstantive amendments for the purposes of clarity 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 S.B. No. 1345, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1345, S.D. 1.

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

____________________________

DONNA MERCADO KIM, Chair