STAND. COM. REP. NO. 185

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 453
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Water, Land, and Hawaiian Affairs, to
which was referred S.B. No. 453 entitled: 

     "A BILL FOR AN ACT RELATING TO HOMESTEAD LEASES,"

begs leave to report as follows:

     The purpose of this measure is to change homestead lease
amounts to $1 and eliminate cash freehold agreements with respect
to homestead leases.

     Testimony in support of this measure was received from the
Office of Hawaiian Affairs.  Testimony in opposition to the
measure was received from the Department of Land and Natural
Resources.

     Your Committee finds that lessees are required to reside on
the land, pay taxes as if the land was held in fee simple, and
meet the lease conditions regarding clearing and cultivation.
Because the leasehold cannot be used as collateral, lessees have
had difficulty financing home construction and repairs.  This
measure enables the lessees to purchase their lease, thus
removing a barrier to improving their property and lifestyle.

     As affirmed by the record of votes of the members of your
Committee on Water, Land, and Hawaiian Affairs that is attached
to this report, your Committee is in accord with the intent and
purpose of S.B. No. 453 and recommends that it pass Second
Reading and be referred to the Committee on Ways and Means.


 
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                                   STAND. COM. REP. NO. 185
                                   Page 2


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



                                   ______________________________
                                   COLLEEN HANABUSA, Chair

 
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