STAND. COM. REP. NO.3255
RE: H.B. No. 2549
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Ways and Means, to which was referred H.B. No. 2549, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO EXTENSION OF PUBLIC LAND LEASES,"
begs leave to report as follows:
The purpose of this measure is to allow the extension of leased public land to allow a lessee who personally finances improvements on the land to amortize and recoup such costs.
The bill also:
(1) Adds certain conditions and restrictions with respect to such extensions;
(2) Provides lease extensions in certain economic hardship cases; and
(3) Broadens the scope of, and removes restrictions on federal mortgage agencies that guaranty loans for public land leases.
Your Committee finds that some lessees of public lands are placed in an untenable situation. Presently, lessees that choose to make major improvements on their land cannot recoup their investment (especially near the end of the lease) unless the improvements are financed through conventional means.
This bill would level the playing field by allowing the extension of public land leases to lessees who self-finance major improvements to the land. The bill also recognizes the plight of some lessees facing economic hardship and allows a lease extension under certain conditions.
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 H.B. No. 2549, 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