STAND. COM. REP. NO. 690

Honolulu, Hawaii

RE:    S.B. No. 1511

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 1511, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AQUACULTURE,"

begs leave to report as follows:

     The purpose and intent of this measure is to support the growth of the aquaculture industry by increasing lease terms for   aquaculture operations from thirty-five to sixty-five years.

Further, the measure authorizes the granting of a right of first refusal to aquacultural operations in good standing.

     Your Committee received written comments in support of this measure from Frederick M. Mencher, East Oahu County Farm Bureau; Ronald P. Weisenbach, President, Hawaii Aquaculture and Aquaponics Association; Hawaii Fish Company, Inc.; North Shore AquaFarm; Hawaii Farm Bureau; and one individual.

     Your Committee received written comments in opposition to the measure from William J. Aila, Jr., Chairperson, Department of Land and Natural Resources; Charles Flaherty, President, Apono Hawaii; Food and Water Watch; Linda Morgan, Ka 'Ohana O Honaunau; and twenty-three individuals.

     Your Committee finds that federally guaranteed loans for aquaculture enterprises are available for loan terms up to forty years, but some of these require applicants to have a lease with at least five years remaining past the term of the loan, for a minimum of forty-five years.  Other federal loans require a lease at least fifty per cent longer than the term of the loan.

Currently, aquaculture leases in Hawaii have a statutory limit of thirty-five years, with no option for renewal.  Providing favorable terms for the leasing of public lands better enables aquaculture enterprises to pursue federally guaranteed loans and encourages commercial aquaculture production in the State.

     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. 1511, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

DAVID Y. IGE, Chair