STAND. COM. REP. NO.  250

 

Honolulu, Hawaii

                , 2009

 

RE:   H.B. No. 1601

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Sir:

 

     Your Committee on Economic Revitalization, Business, & Military Affairs, to which was referred H.B. No. 1601 entitled:

 

"A BILL FOR AN ACT RELATING TO REAL PROPERTY,"

 

begs leave to report as follows:

 

     The purpose of this bill is to support business and economic development by addressing certain inequities in the lease relationship between fee simple owners of commercial and industrial properties and holders of long-term leases of those properties.

 

     The Department of Taxation, Alexander and Baldwin, Inc.  Kamehameha Schools, HRPT Properties Trust, Land Use research Foundation of Hawaii, RMR LLC, and several concerned individuals opposed this bill.  The Tax Foundation of Hawaii commented on this measure.

 

     Your Committee finds that increasing numbers of small businesses are losing their leases during this economic downturn, and it is anticipated that the number of foreclosures of commercial properties will continue to increase.  Your Committee has amended this bill to adopt a temporary moratorium on all commercial, retail, and industrial lease rents, including annual or periodic rent step-ups already negotiated, ending December 31, 2010.

 

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization, Business, & Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1601, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1601, H.D. 1, and be referred to the Committee on Judiciary.

 

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization, Business, & Military Affairs,

 

 

 

 

____________________________

ANGUS L.K. MCKELVEY, Chair