STAND. COM. REP. NO.  515

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 488

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committees on Water & Land and Agriculture, to which was referred H.B. No. 488 entitled:

"A BILL FOR AN ACT RELATING TO APPRAISALS,"

beg leave to report as follows:

The purpose of this measure is to stabilize lease rates and appraisals on public lands by, among other things:

     (1)  Clarifying that an employee of the Board of Land and Natural Resources who appraises public lands for sale or lease at public auction shall be qualified by the employee's relevant work experience;

     (2)  Providing that the valuation of public agricultural or aquacultural land be based on the land's agricultural or aquacultural use, without regard to any value that the land might have for other purposes or uses, or to neighboring land uses;

     (3)  Limiting the rent increase for lease renewals or conversions of a revocable permit to a long-term lease to increases in the consumer price index; and

     (4)  Providing that for disinterested appraisals, costs greater than one year's existing rent shall be borne by the Department of Land and Natural Resources.

Hawaii Cattlemen's Council, Inc.; Hawaii Aquaculture & Aquaponics Association; Ulupono Initiative; Hawaii Farm Bureau Federation; Maui County Farm Bureau; and a concerned individual provided testimony in support of this measure.  The Department of Land and Natural Resources provided testimony in opposition to this measure.  The Department of Agriculture provided comments on this measure.

     Your Committees have amended this measure by:

     (1)  Deleting the requirement that an employee of the Board of Land and Natural Resources who appraises public lands for sale or lease at public auction shall be qualified by virtue of the employee's relevant work experience;

     (2)  Deleting the provision limiting rent increases for lease renewals or conversions of revocable permits to long-term leases to the increase in the consumer price index;

     (3)  Changing its effective date to July 1, 2020, for the purpose of facilitating further discussion; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the records of votes of the members of your Committees on Water & Land and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 488, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 488, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Water & Land and Agriculture,

____________________________ JESSICA WOOLEY, Chair

____________________________ CINDY EVANS, Chair