STAND. COM. REP. NO. 866

                                   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 Judiciary, to which was referred S.B. No.
1109, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to provide the Board of Land and
Natural Resources with more flexibility in the administration of
its lease management duties.

     Specifically, the bill provides the Board with more
flexibility by:

     1.   Deleting the provision requiring the Board to provide
          personal service regarding a notice of a lease breach
          or default;

     2.   Reducing the time a lessee may respond to a notice of
          breach or default from sixty to thirty days;

     3.   Providing the Board with the discretion to determine
          the period during which a lessee must respond to a
          notice for failure to make timely payments;


 
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     4.   Providing the Board with the discretion to determine
          the time provided to a defaulting lessee who has made a
          good faith attempt to cure such default; and

     5.   Allowing alternative means of providing notice.

     Your Committee finds that this bill will not only provide
administrative flexibility to the Board of Land and Natural
Resources, but will also allow the Board to provide more
equitable and fair treatment to lessees of state lands.

     As affirmed by the record of votes of the members of your
Committee on Judiciary that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1109, S.D. 1, and recommends that it pass Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary,



                                   ______________________________
                                   AVERY B. CHUMBLEY, Co-Chair



                                   ______________________________
                                   MATTHEW M. MATSUNAGA, Co-Chair

 
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