STAND. COM. REP. NO. 568

Honolulu, Hawaii

RE: S.B. No. 739

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Water and Land and Agriculture and Environment, to which was referred S.B. No. 739 entitled:

"A BILL FOR AN ACT RELATING TO LAND EXCHANGE,"

beg leave to report as follows:

The purpose and intent of this measure is to authorize the Governor to:

(1) Negotiate land exchanges consistent with and in furtherance of the foregoing agricultural and housing needs and purposes, in a manner which ideally addresses all needs and purposes; and

(2) Submit a report to the Legislature of the negotiated land exchanges for final approval.

Your Committees received testimony in support of this measure from the Agribusiness Development Corporation, Hawaiʻi Farm Bureau, and Hawaii Food+ Policy.

Your Committees received comments on this measure from the Department of Land and Natural Resources.

Your Committees find that land exchanges of state lands for privately-owned lands represent a viable option that the State should explore to improve agricultural efficiency and address the shortage of affordable housing. This measure enables the Governor to negotiate land exchanges to acquire lands that are suitable for long-term diversified agricultural production in exchange for land for private parties to develop affordable housing developments.

Your Committees have amended this measure by:

(1) Inserting an effective date of January 1, 2050, to encourage further discussion; and

(2) 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. 739, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 739, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________ MIKE GABBARD, Chair

________________________________ LORRAINE R. INOUYE, Chair