CONFERENCE COMMITTEE REPORT NO.75

                            Honolulu, Hawaii
                                            , 2000

                            RE:   S.B. No. 2843
                                  H.D. 2
                                  C.D. 1




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

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

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 2843, H.D. 2, entitled:  

     "A BILL FOR AN ACT RELATING TO THE HAWAIIAN HOMES COMMISSION
     ACT, 1920, AS AMENDED," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to provide for a more
effective administration and disposal of Hawaiian home lands by:

     (1)  Clarifying the Department of Hawaiian Home Lands'
          (DHHL) authority to lease out improvements situated on
          Hawaiian home lands;

     (2)  Providing flexibility in the manner in which DHHL may
          dispose of Hawaiian home lands to a native Hawaiian or
          to an organization or association controlled by native
          Hawaiians; and


 
a                                                     SB2843 CD1
                            CONFERENCE COMMITTEE REPORT NO.75
                            Page 2



     (3)  Allowing DHHL to grant licenses that are to be
          considered as non-exclusive franchises for the purpose
          of installing infrastructure on Hawaiian home lands.

     Upon further consideration, your Committee has amended the
measure by deleting the amendments made in the House Draft 2
version which allows DHHL to grant licenses that are to be
considered as non-exclusive franchises for the purpose of
installing infrastructure on Hawaiian home lands and reverting
the provisions back to the original contents of the Senate Bill
as introduced, with the exception of a technical, nonsubstantive
amendment.

     Your Committee finds that the original contents of S.B. No.
2843 clarified that DHHL may lease structures situated on
Hawaiian home lands and provides the Department with greater
flexibility in disposing of Hawaiian home lands to a native
Hawaiian or an organization or association controlled by native
Hawaiians.

     Your Committee also finds that existing law is silent as to
the DHHL's authority to lease structures situated on Hawaiian
home lands.  Although the authority is implied, your Committee
believes the clarification provided by the measure is necessary.

     Your Committee further finds that under existing law, native
Hawaiians seeking to lease Hawaiian home lands offered under a
general lease must go through a sealed bid process.  If the land
is not successfully bid upon, the land may be leased to the
general public through an open bid process.  Your Committee
believes that this practice is unfair to native Hawaiians in that
potential native Hawaiian lessees may end up paying more under a
lease through the sealed bid process than what is actually
necessary.  Your Committee also believes that allowing potential
native Hawaiian lessees to participate in an open bid process for
Hawaiian home lands would allow these potential lessees to
ascertain the exact value of competing voice bids, thereby
providing the opportunity for the lower, more affordable lease
rates.

     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of S.B. No. 2843, H.D. 2, as amended herein, and recommends that
it pass Final Reading in the form attached hereto as S.B. No.
2843, H.D. 2, C.D. 1.


 
a                                                     SB2843 CD1
                            CONFERENCE COMMITTEE REPORT NO.75
                            Page 3



                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE HOUSE           ON THE PART OF THE SENATE




_____________________________     _______________________________
Rep. SCOTT SAIKI                  Sen. COLLEEN HANABUSA
Co-Chair                          Co-Chair



_____________________________     _______________________________
Rep. BOB NAKASONE                 Sen. BRIAN T. TANIGUCHI
Co-Chair                          Co-Chair



                                  ______________________________ 
                                  Sen. BRIAN KANNO
                                  Co-Chair

 
a                                                     SB2843 CD1