Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Water and Land Use, to which was referred H.B. No. 687 entitled:

begs leave to report as follows:

The purpose of this bill is to enhance the ability of the Department of Land and Natural Resources (DLNR) to dispose of public lands more cost effectively. This bill changes the public notice requirements for auctions, drawings, direct negotiation, exchanges, quitclaim, submerged and reclaimed lands, reservations, and easements from three successive weeks in both a statewide and county publication to once or twice in either a statewide or local publication.

Currently, the costs of these public notices are high. Approximately 60 parcels were auctioned over the past four years, with the average public notice costing $654. This average cost represented 116 percent of the upset annual lease rent. This means that the average bidder was required to pay more than one year's worth of additional rent just to cover the public notice costs.

DLNR has found other marketing techniques to be more effective in reaching qualified bidders. For example, each land district is required to maintain a listing of individuals interested in state land auctions. These individuals are mailed notices for each auction. In addition, DLNR has posted "for auction" signs on the property to be auctioned, and is considering the posting of these properties on DLNR's website.

DLNR testified in support of this bill, and Life of the Land offered comments.

Your Committee has amended this bill by requiring that public notice shall be given once statewide and once in the county where the land being disposed of is located.

As affirmed by the record of votes of the members of your Committee on Water and Land Use that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 687, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 687, H.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.