STAND. COM. REP. NO. 3002

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2409

       H.D. 2

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 2409, H.D. 2, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO AQUACULTURE,"

 

begs leave to report as follows:

 

     The purpose of this measure is to promote commercial aquaculture operations in the State by providing favorable leasing terms of state lands.

 

     More specifically, this measure:

 

     (1)  Increases the maximum lease term for aquaculture operations from thirty-five to forty-five years;

 

     (2)  Permits aquaculture operations in good standing to be given the right of first refusal to renew an aquaculture lease;

 

     (3)  Allows aquaculture operations to engage in supportive aquaculture activities during the lease term;

 

     (4)  Defines the term aquaculture and includes taro within the definition; and

 

     (5)  Requires the Department of Agriculture and the Department of Land and Natural Resources to conduct a comprehensive study to identify state lands that are or can be made available for taro production and submit a report to the Legislature.

 

     Your Committee received written comments in support of this measure from Aquaculture Planning and Advocacy, East Oahu County Farm Bureau, Fully Integrated Systems Hawaii, Hawaii Aquaculture Association, Hawaii Fish Company, Hawaii Oceanic Technology, Inc., Pacific Aquaculture and Biotechnology, and six concerned individuals.  The Sierra Club of Maui, Food and Water Watch, and two individuals submitted comments in opposition.  The Department of Agriculture, Department of Land and Natural Resources, and seventy-two individuals submitted comments.  The written comments may be reviewed on the Legislature's website.

 

     Your Committee finds that direct leasing of public lands is the cornerstone for building a successful aquaculture industry in the State.  However, the current maximum lease rate does not allow aquaculture ventures to reach economic viability.  As a result, aquaculture ventures have a difficult time attracting financing.  Your Committee also finds that the production of taro is vital to the aquaculture and agriculture industries.  Your Committee believes that this measure will ensure that the aquaculture industry thrives in the State.

 

     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 H.B. No. 2409, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

 

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

 

 

 

____________________________

DONNA MERCADO KIM, Chair