STAND. COM. REP. NO. 3309

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 755
                                        H.D. 2
                                        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. 755, H.D. 2, 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 Hawaiian homestead
lessees to purchase the fee interests in their land for $1 and to
eliminate cash freehold agreements with respect to homestead
leases.

     Hawaiian homestead lessees have had problems in obtaining
mortgages for their homestead lots because they only have
leasehold title to the property, and the terms of the leases,
pursuant to the Hawaiian Homes Commission Act, restrict
alienation to relatives, leaving the lessees with little in the
way of required security to obtain loans for their property.

     Your Committee has amended this bill by reinstating the
provisions of H.D. 1.  These provisions would assist Hawaiian
homestead lessees in obtaining financing to improve their
leasehold properties by allowing the board of land and natural
resources to consent to exempting the leases during the period of
the mortgage from the restriction on the passing of the property
to family members only.  The bill also removes the strict passage

 
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                                   STAND. COM. REP. NO. 3309
                                   Page 2


requirements and allows the lessee to assign the property to any
specified family member.

     Your Committee finds that because of provisions restricting
the transfer of Hawaiian homestead lots, homestead lessees have
experienced difficulties in obtaining loans to renovate or
replace their dwellings.  These provisions need to be changed to
allow the law to serve the best interests of the leaseholders.

     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.
755, H.D. 2, S.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as H.B. No. 755,
H.D. 2, 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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