STAND. COM. REP. NO.3232

Honolulu, Hawaii

, 2002

RE: H.B. No. 2018

H.D. 1

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2018, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to provide relief to agricultural lessees on public land with leases expiring within five years.

Your Committee finds that many agricultural lessees on public land are facing the expiration of their leases. Since preparation and planning in farming, like any other business, is critical to success, the possibility of an expired lease obviates long-term planning and threatens a farmer's ability to facilitate growth and production.

This bill provides relief to lessee farmers by allowing them to re-negotiate state leases within five years of the expiration of the lease. If the original lessee wins or retains the lease, the lessee can continue to farm the land without the threat of eviction. If the lessee loses the lease through the bidding process, the lessee is compensated for any residual value of any improvement made on the property by the new tenant. Either way, the State is insured optimal rent for agricultural leased land, and the lessee is provided fair disposition of an otherwise tenuous situation.

It is your Committee's intent that the notice requirement should not preclude advertising in local area newspapers.

Your Committee has amended the bill by making technical changes 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 Committee is in accord with the intent and purpose of H.B. No. 2018, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2018, H.D. 1, S.D. 2.

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

____________________________

BRIAN T. TANIGUCHI, Chair