STAND. COM. REP. NO. 2675

Honolulu, Hawaii

RE: S.B. No. 3114

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committees on Water and Land and Agriculture and Environment, to which was referred S.B. No. 3114 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Give preference rights for an agricultural park lot and a non-agricultural park land lease to lessees who have made a significant improvement; and

(2) Add the same preferences for a non-agricultural park land lease as those for an agricultural park lot lease.

Your Committees received testimony in support of this measure from Ulupalakua Ranch. Your Committees received comments on this measure from the Department of Agriculture and one individual.

Your Committees find that the current preference rights for agricultural park lots and other agricultural lands do not consider self-financed improvements made by lessees. This discourages lessees from using their own funds to make improvements near the end of a lease term. This measure will add preference rights to lessees who have made a significant improvement to their agricultural lands, which will improve agricultural productivity, promote agriculture, and increase agricultural self-sufficiency in the State.

Your Committees have amended this measure by:

(1) Clarifying that significant improvement are improvements that further commercial agricultural operations and making conforming amendments;

(2) Inserting a provision that requires the Department of Agriculture to define "significant improvement" in administrative rules and making conforming amendments; and

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

As affirmed by the records of votes of the members of your Committees on Water and Land and Agriculture and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3114, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3114, S.D. 1, and be referred to your Committee on Judiciary.

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

________________________________ MIKE GABBARD, Chair

________________________________ KAIALI'I KAHELE, Chair