Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred H.B. No. 687, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to enable the Department of Land and Natural Resources (DLNR) to dispose of public lands in a more cost-effective manner by changing the public notice requirement from three successive weeks to once in both a statewide and countywide publication for auctions, drawings, direct negotiations, exchanges, quitclaims, submerged and reclaimed lands, reservations, and easements.

DLNR commented in support of the bill.

DLNR informed your Committee that the current public notice requirements relating to the disposition of public lands is not cost effective. Over the past four years, the average public notice cost reached $654, which amounts to 116 percent of the upset annual lease rent. Thus, the average bidder was required to pay more than a year of additional rent simply to cover the public notice costs.

Moreover, DLNR has experienced greater success in reaching qualified bidders using other marketing techniques. For example, DLNR has adopted the practice of mailing auction notices to individuals within each land district who have indicated an interest in public land auctions. In addition, DLNR presently posts "for auction" signs on auction property, and is considering posting notice on its website.

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 687, H.D. 1, and recommends that it pass Third Reading.