STAND. COM. REP. NO. 1266

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1025

       H.D. 1

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

 

Sir:

 

     Your Committee on Water and Land, to which was referred H.B. No. 1025, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO LEASE EXTENSIONS ON PUBLIC LAND,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to authorize the Board of Land and Natural Resources (Board) to extend commercial, industrial, resort, or governmental leases, other than those to which the University of Hawaii is a party, that have not been transferred or assigned within the last five years, for lessees who commit to making substantial improvements to the existing improvements.

 

     Your Committee received testimony in support of this measure from the Department of Land and Natural Resources, HPM Building Supply; McCully Works; David S. De Luz, Sr. Enterprises, Inc.; and Downtown Laundry Express.  Your Committee received testimony in opposition to this measure from the Office of Hawaiian Affairs, Hawaiian Affairs Caucus of the Democratic Party of Hawaii, and two individuals.

 

     Your Committee finds that many of the leases for commercial, industrial, and resort properties on public land statewide may be nearing the end of their lease terms.  Faced with the uncertainty of continued tenancy, lessees have little incentive to make major investments in infrastructural improvements and therefore the infrastructure on these properties has been deteriorating.  Authorization of lease extensions, like those proposed by this measure, may resolve issues surrounding the future of improvements located on currently leased public lands.

 

     Your Committee has amended this measure by:

 

     (1)  Inserting a blank for all references to numbers of years and percentages;

 

     (2)  Exempting leases of public lands owned by the Department of Hawaiian Home Lands;

 

     (3)  Inserting a blank repeal date; and

 

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

 

     As affirmed by the record of votes of the members of your Committee on Water and Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1025, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1025, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

 

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

 

 

 

________________________________

KAIALI'I KAHELE, Chair