STAND. COM. REP. NO.2536

Honolulu, Hawaii

, 2002

RE: S.B. No. 2242

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2242, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to authorize the Board of Land and Natural Resources (Board) to extend a state agricultural lease for improvements made to a property that is paid by a lessee.

The bill also authorizes the Board to extend a state agricultural lease due to the economic hardship of a lessee caused by a natural disaster or eminent domain-related proceeding.

Your Committee finds that state agricultural leases have been a source of contention for many years. A major problem has been the inability of farmer lessees to make improvements on their land near the end of their lease term without concomitant extensions on their leases to recoup the cost of those improvements. Currently, only improvements financed by a lender are eligible for lease extensions. Lessee-financed improvements do not qualify for lease extensions.

This bill would level the playing field and allow both lender-financed and lessee-financed improvements to qualify for agricultural lease extensions. The bill also provides for lease extensions in economic hardship cases due to natural disasters and eminent domain-related proceedings.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2242, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair