STAND. COM. REP. NO.1167

Honolulu, Hawaii

, 2001

RE: H.C.R. No. 113

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Water and Land Use, to which was referred H.C.R. No. 113 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE STATE AUDITOR TO CONDUCT A STUDY OF LEASE APPRAISAL PRACTICES BY THE DEPARTMENT OF LAND AND NATURAL RESOURCES,"

begs leave to report as follows:

The purpose of this concurrent resolution is to address concerns regarding the manner in which the Department of Land and Natural Resources (DLNR) establishes lease rent values by requesting the State Auditor to review DLNR's procedures and to submit a report to the Legislature.

DLNR and an individual testified in support of this measure. The Hawaii Chapter of the Appraisal Institute and EnviroWatch, Inc., offered comments.

Among the concerns are whether:

(1) Residential R-5 or R-10 zoned property is used in determining the ground rent for state agricultural lease properties;

(2) The appraisal methodology has prevented lessees from securing mortgages on leases from private lenders; and

(3) Independent appraisers, in preparing state appraisals, review DLNR's lease files and other unrecorded transactions.

Your Committee requests that the State Auditor also review any pertinent information that may be provided by individuals who have first-hand experience with the lease appraisal process.

As affirmed by the record of votes of the members of your Committee on Water and Land Use that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 113 and recommends that it be referred to the Committee on Legislative Management.

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

____________________________

EZRA KANOHO, Chair