Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 1017 entitled:

begs leave to report as follows:

The purpose of this measure is to make lessees who abandon eminent domain proceedings solely responsible for costs incurred by a lessor.

The Housing and Community Development Corporation of Hawaii (HCDCH) testified in support of the measure.

The residential leaseholds law authorizes HCDCH to institute eminent domain proceedings to acquire leased fee interests in development tracts within twelve months of the designation of the tract to be acquired. If eminent domain proceedings are not instituted within the twelve-month period, the corporation is liable for certain expenses incurred by the lessor.

Your Committee finds that in some instances the failure to institute eminent domain proceedings is due to a lessee's inability, failure, or refusal to comply with requirements for the purchase of the fee. In these instances, HCDCH is still responsible to the lessor for the lessor's costs and must pursue the lessee in a separate proceeding to recover these amounts. This measure provides that where the lessee is responsible for abandonment of the eminent domain proceeding, the lessee shall be solely responsible to the lessor for the lessor's costs.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1017 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.