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 S.B. No. 48, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to provide an exception to the State's public land leasing policies by directing the Department of Land and Natural Resources (DLNR) to extend, by 15 years, the leases of ranchers who were or will be affected by the widening of Saddle Road on the island of Hawaii.

KK Ranch, Inc. testified in support of this measure. Hawaii's Thousand Friends and an individual opposed passage of this bill. DLNR offered comments.

Your Committee finds that the realignment of Saddle Road may affect the habitat of the palila, which thrives in the mamane forests along the upper elevations of Mauna Kea. As a result, the federal government has identified a site that could provide the palila with an alternative habitat.

However, the designated land is currently under long-term state leases to four cattle ranchers. To date, ongoing discussions between DLNR and the ranchers have not resulted in any alternatives that the ranchers believe would fairly compensate them for the withdrawn lands. Alternatives have included the provisions of section 171-37(3), Hawaii Revised Statutes, which specifies reduced rents and compensation for the loss of permanent improvements.

Your Committee finds that providing a statutory exception to state land leasing policies is not an appropriate solution to this problem. Therefore, your Committee has amended this bill by deleting its substance and inserting provisions that:

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 S.B. No. 48, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 48, S.D. 1, H.D. 1, and be referred to the Committee on Finance.