STAND. COM. REP. NO.1469

Honolulu, Hawaii

, 2001

RE: H.B. No. 503

H.D. 2

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 503, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STATE LEASES,"

begs leave to report as follows:

The purpose of this measure is to change the procedure for extending state agricultural leases.

Your Committee finds that many agricultural lessees face an uncertain future as their state leases near expiration. These lessees are concerned because, unless a lessee obtains a loan for improvements to the property, the only way the lessee can renew the lease is by public auction. These restrictions place farmers in a precarious situation and also inhibit the growth and expansion of Hawaii's agricultural industry.

This bill provides a fair and equitable solution to the problems raised by lessees and state administrators by allowing the extension of state leases if:

(1) The lease expired or will expire within five years;

(2) There are no other qualified bidders for a leased property or there are other comparable leased land available to other potential lessees;

(3) The land is actively and productively being used for the purpose of the lease;

(4) The lease is not in default under the terms of the lease or permit; and

(5) Public interest does not demand that the land should be converted for other uses.

Your Committee has amended the bill by clarifying that the lease subject to negotiation under the bill is the lease held by the existing lessee.

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. 503, 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. 503, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair