STAND. COM. REP. NO. 2903

Honolulu, Hawaii

RE:    H.B. No. 737

       H.D. 2

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Agriculture, to which was referred H.B. No. 737, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS TO ASSIST AGRICULTURAL ENTERPRISES,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the Department of Budget and Finance to issue special purpose revenue bonds to assist agricultural enterprises in the State.

     Your Committee received testimony in support of this measure from the Hawaii Cattlemen's Council, Inc.; Alexander & Baldwin, Inc.; Land Use Research Foundation; Local Food Coalition; Kohala Center; and Hawaii Farm Bureau Federation.  Your Committee received comments on this measure from the Department of Agriculture, Department of Budget and Finance, and State Procurement Office.

     Your Committee finds that it is vital to the State's agricultural economy and food security that farmers be able to make capital investments and improvements to agricultural facilities and infrastructure.  This measure provides an important source of private financing to farmers and will stimulate and increase new agricultural investments and capital improvements without affecting the State's budget.

     Your Committee has amended this measure to achieve statutory efficiency and clarity by:

     (1)  Deleting the contents of this measure that created a new part within chapter 39A, Hawaii Revised Statutes, which authorizes the issuance of special purpose revenue bonds to assist agricultural enterprises; and

     (2)  Replacing the contents of this measure with language to amend the existing chapter 39A, part X, Hawaii Revised Statutes, relating to assisting agricultural enterprises serving important agricultural lands, to authorize the issuance of special purpose revenues bonds to assist all agricultural enterprises, rather than only those agricultural enterprises serving important agricultural lands.

     As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 737, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 737, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

CLARENCE K. NISHIHARA, Chair