STAND. COM. REP. NO. 3062

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2288

       H.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

 

Madam:

 

     Your Committees on Hawaiian Affairs and Water and Land, to which was referred H.B. No. 2288, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF HAWAIIAN HOME LANDS,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to amend the Hawaiian Homes Commission Act to permit the Department of Hawaiian Home Lands to lease department-owned or department-controlled improvements, or space within an improvement, on Hawaiian homelands through direct negotiation, at fair market rent, and for a term of up to five years.

 

     Your Committees received testimony in support of this measure from the Department of Hawaiian Home Lands.

 

     Your Committees finds that authorizing the Department of Hawaiian Home Lands to lease buildings and warehouses on its land through direct negotiations for up to five years per lease term would allow the Department greater flexibility to generate revenue on its land.  One member of your Committees expressed concerns that this measure may allow the Department of Hawaiian Home Lands to lease buildings and warehouses through direct negotiations indefinitely, so long as the lease is renewed every five years.  The Department of Hawaiian Home Lands assured your Committees that the Department's intent is not to authorize long-term leases by direct negotiation.  Rather, this measure will allow the Department to generate revenue in the short term until it secures a long-term tenant.

 

     As affirmed by the records of votes of the members of your Committees on Hawaiian Affairs and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2288, H.D. 1, and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

 

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

 

____________________________

MALAMA SOLOMON, Chair

 

____________________________

MAILE S.L. SHIMABUKURO, Chair