STAND. COM. REP. NO. 284-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 755
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Water and Land Use, to which was referred
H.B. No. 755 H.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 for more flexibility
for homestead lessees by making  amendments which are fair and
reasonable for both the homestead lessees and the state.

     Testimony in support of this bill was submitted by the DLNR
and one concerned citizen.

     No testimony in opposition of this bill was received.

     Testimony recommending an amendment restructuring the fair
market value formula was received by OHA.

     Your committee finds that currently the law does not allow
for the transfer or assignment of a homestead lease to a family
member while the lessee is still alive.  According to section
171-99(e), HRS, only upon the death of the lessee can the lease
be passed on and then, only to the person(s) as defined in this
succession provision.  This requirement stifles lessees who
desire to leave their lease to a particular family member.  Often
times, the lessees would like the lessee and/or the property,
including investing their own monies into improvements.  This
bill would allow the homestead lessees to assign the lease prior

 
 
 
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to their death while ensuring that the lease remains within the
lessee's family.

     As affirmed by the record of votes of the members of your
Committee on Water and Land Use that is attached to this report,
your Committee is in accord with the intent and purpose of H.B.
No. 755, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 755, H.D. 1, and
be referred to the Committee on Finance.

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



                                   ______________________________
                                   ROMY M. CACHOLA, Chair