STAND. COM. REP. NO.  838

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 568

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 568, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AQUACULTURE,"

begs leave to report as follows:

     The purpose of this bill is to encourage aquacultural production in Hawaii by providing for more favorable terms for the lease of public lands for aquaculture operations.  Specifically, this bill:

     (1)  Increases the maximum term of leases for aquaculture operations from 35 to 45 years, and allows a maximum term of 65 years for existing operations in good standing for ten or more years; and

     (2)  Allows aquaculture operations in good standing the right of first refusal. 

     The Hawaii Farm Bureau Federation, East Oahu County Farm Bureau, Hawaii Aquaculture and Aquaponics Association, and a concerned individual supported this bill.  The Department of Land and Natural Resources, ‘Apono Hawaii, Food & Water Watch, and numerous concerned individuals opposed this bill.  The Department of Agriculture and several concerned individuals submitted comments.

     Your Committee has amended this measure by:

     (1)  Changing its effective date to July 1, 2030, to encourage further discussion; and

     (2)  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. 568, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 568, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair