STAND. COM. REP. NO. 1150

Honolulu, Hawaii

RE: H.B. No. 307

H.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred H.B. No. 307, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to allow the Department of Agriculture to extend the agricultural park lease of any 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 the Office of the Mayor of the County of Hawai‘i; Maui County Farm Bureau; Hawaii Floriculture and Nursery Association; Ponoholo Ranch Limited; Land Use Research Foundation of Hawaii; Hawai‘i Farm Bureau; Local Food Coalition; Ono Nut Farms; Hawaii Cattlemen's Council, Inc.; Aloha ‘Aina Landscaping LLC; Pacific Floral Exchange, Inc.; Hawaii Crop Improvement Association; and fourteen individuals. Your Committee received comments on this measure from the Department of Agriculture; Bromeliads Hawaii, LLC; and one individual.

Your Committee finds that agricultural park leases are structured to advance agriculture in the State and that long-term leases make it possible for farmers and ranchers to prudently invest in operational and infrastructure improvements on leased lands. Your Committee further finds that when faced with the uncertainty of continued tenancy, lessees have little incentive to make major investments or improvements to their infrastructure or ensure the long-term maintenance of their facilities, which may deteriorate as a result. Thus, this measure allows the Department of Agriculture to extend certain leases with a remaining term of fifteen years or less to encourage further investment and production on agricultural park lands.

As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 307, H.D. 1, and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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MIKE GABBARD, Chair