STAND. COM. REP. NO. 603

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1062
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 1062 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to expand the eligibility for
agricultural park leases to include revocable living trusts and
limited liability companies.

     Your Committee finds that when the agricultural park program
was first established, new legal entities such as revocable
living trusts and limited liability companies had not been
established or widely used.  This bill would allow lessees
holding a lease under a revocable living trust or limited
liability company to transfer their interests in the lease to
surviving family members or successor business entities.  Your
Committee also finds that this bill will provide security and
peace of mind to agricultural park lessees and conform the law
with modern business applications.

     Your Committee has amended the bill by making technical
amendments that have no substantive effect.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your

 
a                                                     SB1062 SD1
 
 
 
                                   STAND. COM. REP. NO. 603
                                   Page 2


Committee is in accord with the intent and purpose of S.B.
No. 1062, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 1062, S.D. 1.

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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     SB1062 SD1