Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Water, Land, Energy and Environment and Agriculture, to which was referred S.B. No. 48 entitled:

beg leave to report as follows:

The purpose of this measure is to add special livestock and pasture use to leases where alternative uses are permitted, to require compensation for livestock when lands are withdrawn from a State lease, and to provide fifteen-year lease extension and proper payment for livestock when the department of land and natural resources exercises its right to use public lands.

Your Committees received testimony in support of the lease extension from KK Ranch, Inc., Parker Ranch, Boteilho Hawaii Enterprises, Inc., and Hawaii Cattlemen's Council, Inc. The Department of Land and Natural Resources submitted testimony in opposition.

Your Committees find that the lessees affected by the Saddle Road widening may lose as much as thirty per cent of their leased acreage and would be forced to cut the size of their cattle herds by one third as well. Your Committees also find that these lessees have been unsuccessful in efforts to negotiate for land exchanges or fair compensation for the losses.

Your Committees have also heard that despite these frustrations, the lessees do not support the provisions of this measure to amend the current law to add special livestock and pasture use to leases where alternative uses are permitted, and to require compensation for livestock when lands are withdrawn from a State lease. The lessees have stated that they find these proposals would have a significant negative financial and legal impact for the State.

Your Committees are supportive of the provisions to extend the leases. Your Committees have amended this measure to delete the proposals to add special livestock and pasture use to leases where alternative uses are permitted, and to require, by statute, compensation for livestock when lands are withdrawn from a State lease.

As affirmed by the records of votes of the members of your Committees on Water, Land, Energy and Environment and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 48, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 48, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.