STAND. COM. REP. NO. 2621

Honolulu, Hawaii

RE:    S.B. No. 2296

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2296, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE DISPOSITION OF LANDS MANAGED BY THE STATE DEPARTMENT OF AGRICULTURE,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the Department of Agriculture to select qualified applicants as back-up lessees when disposing of certain agricultural or non-agricultural park lands through the sealed bidding process.

     The measure also authorizes the Department of Agriculture to negotiate with or offer leases to back-up lessees if the highest offering lessee fails to finalize a lease or satisfy conditions of the award.

     Your Committee received written comments in support of the measure from the Board of Agriculture.

     Your Committee finds that the awarding of agricultural leases through sealed bidding is a time-consuming process for the Department of Agriculture.  Your Committee further finds that when an awardee fails to finalize a lease, the Department is currently required to restart the sealed bidding process.  Your Committee believes that by authorizing the Department to select qualified applicants as back-up lessees, this measure will save the Department significant time and resources in awarding agricultural leases.

     Your Committee has amended this measure by:

     (1)  Changing the effective date July 1, 2050; and

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

     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. 2296, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2296, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair