STAND. COM. REP. NO.  876-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2011

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2011 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURAL LANDS,"

begs leave to report as follows:

The purpose of this measure is to give the Agribusiness Development Corporation additional means to move Hawaii closer to food sustainability and self-sufficiency by:

     (1)  Authorizing the Corporation to issue up to $175,000,000 in revenue bonds to acquire specified agricultural lands owned by the Dole Food Company on the island of Oahu;

     (2)  Establishing the Agribusiness Land and Facilities Special Fund that will be the depository of revenues from, and used to operate, manage, and maintain, the Dole Food Company lands;

     (3)  Requiring the counties to enact an agriculture subdivision code to promote agriculture; provided that should the counties fail to do so by 2015, the Corporation may establish a code;

     (4)  Authorizing the Corporation to subdivide agricultural lands controlled by the State, exempt from county infrastructure and road requirements, to encourage farming; and

     (5)  In awarding leases, requiring the Corporation to give priority to agricultural and livestock farmers who produce products for human consumption in the State.

Ulupono Initiative; Protect Kahoolawe Ohana; Hawaii Farm Bureau; and three concerned individuals testified in support of this measure.  The Department of Planning and Permitting of the City and County of Honolulu testified in opposition to this measure.  The Agribusiness Development Corporation commented on this measure.

     Your Committee has amended this measure by:

     (1)  Changing the appropriation and authorization of revenue bonds amounts to unspecified sums;

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

     (3)  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 H.B. No. 2011, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2011, H.D. 1.

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

____________________________

SYLVIA LUKE, Chair