STAND. COM. REP. 1099

Honolulu, Hawaii

, 2003

RE: S.B. No. 516

S.D. 2

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Water, Land Use, and Hawaiian Affairs, to which was referred S.B. No. 516, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO KANEOHE BAY PIERS,"

begs leave to report as follows:

The purpose of this bill is to provide the Department of Land and Natural Resources (DLNR) with a methodology for calculating lease rents for private, residential noncommercial piers in Kaneohe Bay.

Protect Our Shoreline Ohana and a number of concerned individuals testified in support of this bill. DLNR testified in opposition to this measure.

Current lease rent methodology used by DLNR to determine rents for private, noncommercial piers in Kaneohe Bay places the value of submerged lands at 50 percent of the value of the abutting fast land. This methodology is the same one used in determining the value of submerged lands for commercial piers. Your Committee finds that this method of calculating lease rent results in excessive rents given the fact that these piers are private structures that do not derive any commercial income.

 

However, your Committee recognizes the concerns raised by DLNR that a methodology using calculations that value submerged lands at ten percent of the value of the fast lands may not reflect a fair market value.

Your Committee has amended this bill by:

(1) Deleting the percentage multiplier for calculating lease rent valuations for the purpose of facilitating further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Water, Land Use, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 516, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 516, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

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

 

____________________________

EZRA R. KANOHO, Chair