STAND. COM. REP. NO. 32-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 1705

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Agriculture, to which was referred H.B. No. 1705 entitled:

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

begs leave to report as follows:

The purpose of this measure is to allow the Department of Agriculture to extend the lease of any agricultural park lessee who holds a lease with a remaining term of fifteen years or less; provided that the land covered by the lease is twenty-five acres or less and located in a county with a population of less than five hundred thousand.

Your Committee received testimony in support of this measure from Bromeliads Hawaii, LLC; Ono Nut Farms, Inc.; Pacific Floral Exchange, Inc.; Hawaii Floriculture and Nursery Association; Hawai‘i Farm Bureau; and five individuals. Your Committee received testimony in opposition to this measure from the Department of Agriculture. Your Committee received comments on this measure from the Hawaii Cattlemen's Council and Land Use Research Foundation of Hawaii.

Your Committee finds that as agricultural park lessees near the end of their lease term, it becomes difficult or unfeasible to invest capital into or make major infrastructural improvements to the agricultural operations or farm, as the lessees are uncertain whether they will be able to extend their lease and continue their operations on that agricultural park land. This measure seeks to remedy that situation and allow the Department of Agriculture to extend leases to continue these agricultural activities.

However, your Committee recognizes that determining the remainder of a lease term in which a lessee can qualify for a lease extension, as well as arriving at the term duration of an extended lease, merit further discussion. In this regard, your Committee respectfully requests that your Committee on Consumer Protection & Commerce consider this matter in its discussion should it decide to hear this measure.

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. 1705 and recommends that it pass Second Reading and be referred to your Committee on Consumer Protection & Commerce.

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

____________________________

MARK J. HASHEM, Chair