STAND. COM. REP. NO. 438

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 608

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Water, Land, and Housing, to which was referred S.B. No. 608 entitled:

 

"A BILL FOR AN ACT RELATING TO PUBLIC LANDS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to require the Department of Land and Natural Resources to review and consider the sale or exchange of parcels in Sand Island Industrial Park, taking into account existing and potential lease terms, lease income, and use of lease revenues.

 

     Your Committee received testimony in support of this measure from the Sand Island Business Association.  Your Committee received testimony in opposition to this measure from the Department of Land and Natural Resources.  Your Committee received comments on this measure from the Office of Hawaiian Affairs.

 

     Your Committee finds that in 1992, the Department of Land and Natural Resources entered into a fifty-five year lease with the Sand Island Business Association for the Sand Island Industrial Park.  Your Committee also finds that the lessee made substantial improvements, subleased the lots, and managed the Sand Island Industrial Park on behalf of the Department of Land and Natural Resources, pursuant to the terms of the lease, at a significant cost.  Your Committee acknowledges that the members of the Sand Island Business Association are interested in purchasing fee title to the lands at the Sand Island Industrial Park. 

 

     After considering the testimony presented, your Committee finds that sale of the fee title to the Sand Island lessees would not be in the best interests of the State's economy or its natural resources.  Your Committee also finds that the Department of Land and Natural Resources relies heavily on income from lease revenues derived from the Sand Island Industrial Park lease.

 

     Your Committee further finds that an exchange of lands could benefit and support the State's economy and resources.  Accordingly, a proposed S.D. 1 eliminating the State's duty to consider the sale of the Sand Island property was made available to members of the public.

 

     Your Committee has adopted the proposed S.D. 1 made available to the public, which amends the measure by:

 

(1)  Making discretionary the Department of Land and Natural Resources' review and consideration of the exchange of any Sand Island parcels, and eliminating its duty to review and consider the sale of any Sand Island parcel; and

 

(2)  Clarifying the factors that the Department may consider in evaluating an exchange of Sand Island parcels.

 

     As affirmed by the record of votes of the members of your Committee on Water, Land, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 608, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 608, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Water, Land, and Housing,

 

 

 

____________________________

DONOVAN M. DELA CRUZ, Chair