STAND. COM. REP. NO. 202

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1109
                                        S.D. 1




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. 1109 entitled: 

     "A BILL FOR AN ACT RELATING TO NOTICE OF BREACH OR DEFAULT,"

begs leave to report as follows:

     The purpose of this measure is to provide lease management
flexibility to the Board of Land and Natural Resources.

     Specifically, the measure amends the notice of breach or
default requirements on public land leases time periods by
reducing the curing period to thirty days for non-rent breaches
and five business days for rent defaults.

     The measure also clarifies that the Board of Land and
Natural Resources may provide public land lessees with more time
to cure public land lease breaches if they are making a good
faith effort to remedy the breach.

     Testimony in support of the measure was received from the
Attorney General.  The Chairperson of the Board of Land and
Natural Resources and the Department of Hawaiian Home Lands
testified in support of an amended form of the measure.

     Your Committee finds that under existing law, the Department
of Land and Natural Resources is required to provide lessees of
public lands with at least sixty days to cure lease breaches.
The Department of Land and Natural Resources testified that in

 
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                                   STAND. COM. REP. NO. 202
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managing general land leases, current industry standards indicate
that sixty days is far too long a period.

     Your Committee has amended the measure by providing the
Board of Land and Natural Resources with the flexibility to
determine the minimum amount of time it would permit for a
response to a rental default.

     Your Committee believes that the amended measure will
provide the Board of Land and Natural Resources with the
flexibility necessary to more efficiently execute its land lease
management responsibilities.

     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. 1109, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 1109, S.D. 1, and be referred to the Committee on Judiciary.

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



                                   ______________________________
                                   COLLEEN HANABUSA, Chair

 
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