STAND. COM. REP. NO. 2025

 

Honolulu, Hawaii

                

 

RE:    H.B. No. 1025

       H.D. 1

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 1025, H.D. 1, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO LEASE EXTENSIONS ON PUBLIC LAND,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to authorize the Board of Land and Natural Resources to extend certain leases of public lands to encourage current lessees to make improvements to those properties.

 

     Your Committee received written comments in support of this measure from the Department of Land and Natural Resources and HPM Building Supply.

 

     Your Committee received written comments in opposition to this measure from the Office of Hawaiian Affairs, Hoomanapono Political Action Committee, and Ka Lahui Hawaii Political Action Committee.

 

     Your Committee finds that prohibiting the transfer or assignment of a lease within the first ten years of a lease extension will deter speculators from acquiring leases, obtaining extensions, putting in the minimum amount of improvements, and then transferring or assigning the lease for a profit.

 

     Your Committee has amended this measure by:

 

(1)  Specifying that the provisions apply to leases that have not been assigned or transfered within the last ten years;

 

(2)  Clarifying that the provisions do not apply to public lands controlled by the Department of Hawaiian Home Lands and leased pursuant to the Hawaiian Homes Commission Act;

 

(3)  Specifying that the lease extensions shall not exceed forty years;

 

(4)  Prohibiting the transfer or assignment of the leases for the first ten years of the lease extension;

 

(5)  Specifying that resort use requires that at least seventy-five percent of the living or sleeping quarters in the development be used solely for transient accommodations for the term of any lease extension;

 

(6)  Specifying that substantial improvement means any renovation, rehabilitation, reconstruction, or construction of existing improvements that equals or exceeds thirty percent of the market value of the existing improvements;

 

(7)  Making the measure effective upon approval; and

 

(8)  Specifying that the measure shall be repealed on June 30, 2024.

 

     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. 1025, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1025, H.D. 1, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

________________________________

DONOVAN M. DELA CRUZ, Chair