STAND. COM. REP. 1152

Honolulu, Hawaii

, 2003

RE: S.B. No. 1468

S.D. 1

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. 1468, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RESIDENTIAL LEASEHOLDS,"

begs leave to report as follows:

The purpose of this bill, as received by your Committee, is to clarify that a parcel of land must be zoned for residential use to qualify for mandatory lease-to-fee conversion.

Kamehameha Schools, Small Landowners Association of Hawaii, Small Landowners of Oahu, and two concerned individuals submitted testimony in support of this bill. The Housing and Community Development Corporation of Hawaii of the Department of Business, Economic Development, and Tourism supported the intent of this measure.

This measure was heard on March 17, 2003, by your Committee, wherein it was announced that the substance of the bill would be replaced with provisions of H.B. No. 1454, H.D. 1, relating to the counties' eminent domain powers, and specifying that the powers shall not be exercised to assist any owner of a residential leasehold in acquiring the leased fee interest appurtenant to the leasehold interest.

After careful consideration, your Committee has amended this measure by:

(1) Deleting its contents and replacing it with provisions from H.B. No. 1454, H.D. 1, and specifically providing that the powers of eminent domain of the counties cannot be exercised to assist any owner of a residential condominium leasehold in acquiring the leased fee interest appurtenant to the leasehold interest;

(2) Adding a savings clause that specifically renders null and void any condemnation action that is commenced after the effective date of this measure that is in contravention of this bill;

(3) Providing a sunset date of June 30, 2013, and reenacting section 46-1.5, Hawaii Revised Statutes, to the form in which it read on the day before this measure was enacted; and

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

Your Committee acknowledges that this controversial issue is currently before the Honolulu City Council but reasons that a statutory clarification is necessary to overcome the presumed precedent established by the Land Reform Act of 1967, codified as chapter 516, Hawaii Revised Statutes, which is limited to lots as a principal place of residence for one or two families.

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. 1468, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1468, S.D. 1, H.D. 1, and be referred to the Committees on Judiciary and Consumer Protection and Commerce.

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

 

____________________________

EZRA R. KANOHO, Chair