STAND. COM. REP. NO. 2025

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2843
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Water, Land, and Hawaiian Affairs, to
which was referred S.B. No. 2843 entitled: 

     "A BILL FOR AN ACT RELATING TO THE HAWAIIAN HOMES COMMISSION
     ACT, 1920, AS AMENDED,"

begs leave to report as follows:

     The purpose of this bill is to provide for the more
effective administration and disposal of Hawaiian home lands.

     Specifically, the measure clarifies that the Department of
Hawaiian Home Lands may lease structures situated on Hawaiian
home lands and provides the Department with greater flexibility
in disposing of Hawaiian home lands to a native Hawaiian or an
organization or association controlled by native Hawaiians.

     Testimony in support of the measure was received from the
Department of Hawaiian Home Lands.

     Your Committee finds that existing law is silent as to the
Department of Hawaiian Home Lands' authority to lease structures
situated on Hawaiian home lands.  Although the authority is
implied, your Committee believes the clarification provided by
the bill is necessary.

     Your Committee also finds that under existing law, native
Hawaiians seeking to lease Hawaiian home lands offered under a
general lease must go through a sealed bid process.  If the land
is not successfully bid upon, the land may be leased to the

 
a                                                     SB2843
                                   STAND. COM. REP. NO. 2025
                                   Page 2


general public through an open bid process.  Your Committee
believes that this practice is unfair to native Hawaiians in that
potential native Hawaiian lessees may end up paying more under a
lease through the sealed bid process than what is actually
necessary.  Your Committee also believes that allowing potential
native Hawaiian lessees to participate in an open bid process for
Hawaiian home lands would allow these potential lessees to
ascertain the exact value of competing voice bids, thereby
providing the opportunity for the lower, more affordable lease
rates.

     As affirmed by the record of votes of the members of your
Committee on Water, Land, and Hawaiian Affairs that is attached
to this report, your Committee is in accord with the intent and
purpose of S.B. No. 2843 and recommends that it pass Second
Reading and be referred to the Committee on Ways and Means.

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



                                   ______________________________
                                   COLLEEN HANABUSA, Chair

 
a                                                     SB2843