STAND. COM. REP. NO.848-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2242

S.D. 1

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Water and Land Use and Agriculture, to which was referred S.B. No. 2242, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC LAND LEASES,"

beg leave to report as follows:

The purpose of this bill is to amend the provisions relating to public land leases by authorizing the Board of Land and Natural Resources (BLNR) to extend the term of an agricultural or industrial lease:

(1) To allow the lessee to amortize the cost of substantial improvements to the property without institutional financing; and

(2) Due to significant economic hardship directly caused by a natural disaster or eminent domain-related proceeding.

The Hawaii Farm Bureau Federation and a Councilmember of the Maui County Council testified in support of this measure. The Hawaii Agriculture Research Center supported the intent of this bill. The Department of Land and Natural Resources offered comments.

Among other things, this measure addresses the concerns of farmer lessees who are prevented from making improvements on their land near the end of the terms of their leases if they finance the improvements themselves. Currently, only improvements financed by a lender are eligible for lease extensions.

Your Committees have amended this bill by:

(1) Replacing the reference to natural disaster with state disaster to be consistent with chapter 209, Hawaii Revised Statutes;

(2) Authorizing BLNR to extend or modify a lease affected by an eminent domain-related proceeding, provided it determines that the lessee will not be adequately compensated pursuant to the lease provisions;

(3) Requiring that the length of any lease extension resulting from a significant economic hardship shall not exceed five years; and

(4) Making technical, nonsubstantive amendments for purposes of style and clarity.

As affirmed by the records of votes of the members of your Committees on Water and Land Use and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2242, S.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2242, S.D. 1, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Water and Land Use and Agriculture,

 

____________________________

FELIPE P. ABINSAY, Chair

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EZRA KANOHO, Chair