STAND. COM. REP. NO.  890-10


Honolulu, Hawaii

                , 2010


RE:   S.B. No. 2951

      S.D. 2

      H.D. 1





Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii




     Your Committees on Water, Land, & Ocean Resources and Agriculture, to which was referred S.B. No. 2951, S.D. 2, entitled:




beg leave to report as follows:


     The purpose of this bill is to support the agriculture and ranching industries by providing that lessees of public land for agricultural or pastoral uses be fairly compensated when all or a portion of the land is withdrawn, condemned, taken for public uses, or otherwise made unusable. 


     The Hawaii Cattlemen's Council, Inc., Kuahiwi Ranch, McCandless Ranch, and several concerned individuals testified in support of this bill.  The Department of Land and Natural Resources, Department of Transportation, Sierra Club-Hawaii Chapter, and Conservation Council for Hawaii opposed this measure. 


     Your Committees have amended this bill by:


(1)  Providing that if leased public land is withdrawn, condemned, or taken for public use, that prevents the lessee from using the land for the original intended use, the lessee is not required to pay the cost of any insurance required by BLNR to be maintained, or property tax, rather than reimbursing the lessee for those costs;

(2)  Providing that the provisions of this bill are only applicable to new leases entered into after the effective date of this Act;


(3)  Providing further that the fair compensation provisions, except for the provision relieving lessees of the obligation to pay insurance and taxes, shall only take effect if the withdrawal or taking occurs after half of the lease term has elapsed;


(4)  Inserting as Part II of the bill, the contents of House Bill No. 2290, H.D. 2, which provides for the establishment of the Agricultural Inspection and Certification Special Fund, to be used for the inspection and certification of imported and exported agricultural commodities;


(5)  Changing the effective date to July 1, 2010; and


(6)  Making technical, nonsubstantive amendments for style, clarity, and consistency.


     As affirmed by the records of votes of the members of your Committees on Water, Land, & Ocean Resources and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2951, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2951, S.D. 2, H.D. 1, and be referred to the Committee on Finance.


Respectfully submitted on behalf of the members of the Committees on Water, Land, & Ocean Resources and Agriculture,







KEN ITO, Chair