Bill Text: HI SB2951 | 2010 | Regular Session | Amended

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Bill Title: Leased Public Lands; Withdrawal; Compensation

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2010-07-06 - (S) Vetoed on 07-06-10 - Returned from the Governor without approval (Gov. Msg. No. 680). [SB2951 Detail]

Download: Hawaii-2010-SB2951-Amended.html

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CONFERENCE COMMITTEE REP. NO. 133-10

 

Honolulu, Hawaii

                 , 2010

 

RE:    S.B. No. 2951

       S.D. 2

       H.D. 2

       C.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam and Sir:

 

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2951, S.D. 2, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

 

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

 

     The purpose of this measure is to:

 

     (1)  Provide for fair compensation when leased public land for agricultural or pastoral uses is withdrawn, condemned, or taken for public purposes; and

 

     (2)  Establish the Agricultural Inspection and Certification Special Fund, to be used for the inspection and certification of agricultural commodities.

 

     Cattle ranchers on the Big Island suffered serious financial losses as a result of the Saddle Road widening project.  The Department of Land and Natural Resources established a conservation easement on leased land effectively preventing the ranchers from being able to use the leased land for their cattle herds, which required them to reduce their herds at a significant loss.  This jeopardized the lessees' entire business models, because the ranchers were unable to mitigate long-term, fixed costs associated with operating a ranch in the way they had anticipated when the lease was negotiated.

 

     Chapter 171, Hawaii Revised Statutes, presently provides for rent reductions if the land withdrawn causes the land to become unusable for the specific use or uses for which it was originally leased.  However, the law provides no other method of compensation.  The ranchers are required to maintain insurance and pay taxes for land they cannot use for the specific purpose for which it was originally leased. 

 

     Your Committee finds that this measure provides fair compensation when easements render the land unusable for the lessees' original intended purposes yet requires them to maintain insurance and pay taxes for land that no longer supports their existing businesses.

 

     Your Committee has amended this measure by:

 

     (1)  Reverting to S.B. No. 2951, S.D. 2, which provides for fair compensation when leased public land for agricultural or pastoral uses is withdrawn, condemned, or taken for public purposes; and

 

     (2)  Changing the effective date to upon approval.

 

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2951, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2951, S.D. 2, H.D. 2, C.D. 1.

 

Respectfully submitted on behalf of the managers:

 

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

 

____________________________ KEN ITO, Co-Chair		____________________________ CLAYTON HEE, Chair
____________________________ CLIFT TSUJI, Co-Chair		____________________________ DONNA MERCADO KIM, Co-Chair
____________________________ SHARON E. HAR, Co-Chair