STAND. COM. REP. NO. 3240

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 1909
                                        H.D. 1
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 1909, H.D. 1, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO PUBLIC LANDS,"

begs leave to report as follows:

     The purpose of this bill is to allow the Department of Land
and Natural Resources to issue new long-term leases for lessees
of property on Banyan Drive in Hilo.  The purpose is also to
require the Auditor to identify the ceded lands and coordinate
the resolution of issues involving the ceded lands.

     Your Committee finds that the lessees on Banyan Drive are in
a unique situation in that the fifteen Banyan Drive lessees
comprise the majority of resort accommodations in Hilo.  As the
current leases draw to a close, there is little incentive for the
lessees to maintain their properties without a guarantee of a
lease.  Failure to maintain the properties will lead to a
deterioration of Hilo's tourist accommodations and will have a
negative impact in general on the county.  Your Committee finds
that there are sufficient safeguards in the bill to ensure that
the State will receive the benefit of an increased value in the
properties if there is a demonstrated demand for the land during
the negotiation process.


 
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                                   STAND. COM. REP. NO. 3240
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     Your Committee also finds that the ceded land situation
needs to be resolved.  Identification of the lands and
comprehensive inventory and mapping of the lands are crucial to a
fair and equitable solution to the issues involving the ceded
lands.  Your Committee finds that the Auditor, with the
assistance of the Department of Land and Natural Resources, can
handle this complex and necessary task.

     Your Committee has amended this bill by making the amount of
the appropriation to the Auditor blank for the purposes of
promoting further discussion.

     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.
1909, 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. 1909,
H.D. 1, S.D. 2.

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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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