STAND. COM. REP. NO. 614

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 876
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 876, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO RESIDENTIAL LEASE-TO-FEE
     CONVERSION,"

begs leave to report as follows:

     The purpose of this bill is to establish a standard to be
used in appraising the leased-fee interest for condominiums and
cooperative housing corporations.

     The bill permits leases and subleases entered into before
the effective date of the Act to use this standard, and requires
it to be used in leases and subleases entered into on and after
the effective date of the Act.  Your Committee finds that the
standard is based on the fair market value of the property and
will ensure fairness in the valuation process.

     Your Committee has amended the bill by making technical,
nonsubstantive changes for the purposes of clarity.

     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 S.B.
No. 876, S.D. 1, as amended herein, and recommends that it pass

 
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                                   STAND. COM. REP. NO. 614
                                   Page 2


Third Reading in the form attached hereto as S.B. No. 876,
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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