STAND. COM. REP. NO.  1237-10

Honolulu, Hawaii

                , 2010

RE:   S.B. No. 2951

      S.D. 2

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2951, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

     The purpose of this bill is to provide for the viability and efficient management of Hawaii's agriculture industry by:

     (1)  Providing for compensation, including for lost crops, when leased public land for agricultural or pastoral uses is withdrawn, condemned, or taken for public purposes; and

     (2)  Establishing the Agricultural Inspection and Certification Special Fund to be used for the inspection and certification of agricultural commodities.

     The Hawaii Crop Improvement Association; Ka‘u Farm and Ranch Co. LLC; and Ka‘u Coffee Growers Cooperative testified in support of this bill.  The Department of Transportation opposed this measure.  The Department of Agriculture; Department of Land and Natural Resources; Department of Budget and Finance; Hawaii Cattlemen's Council, Inc.; West County Farm Bureau; KK Ranch Inc.; and Hawaii Farm Bureau Federation provided comments.

     Your Committee has amended this bill by:

     (1)  Inserting a provision to state that the provisions of part I, relating to the compensation to lessees when leased public lands are withdrawn or taken, will not apply if any of the definitions of the part conflict with federal laws that require full compensation from the State Highway Fund; and

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

     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 S.B. No. 2951, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2951, S.D. 2, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair