Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Water, Land, Energy and Environment, to which was referred H.B. No. 870 entitled:

begs leave to report as follows:

The purpose of this measure is to clarify that obtaining a loan shall not be a prerequisite to modifying or extending the term of a public land lease.

The Department of Land and Natural Resources testified against this measure.

Your Committee agrees that the change proposed in this measure is not prudent public policy.

Your Committee has amended this measure to delete its contents and insert the language from S.B. No. 2803, S.D. 1, previously heard by this Committee. As amended, this measure allows for the direct negotiation of leases or master leases on industrial parks developed under a joint venture or development agreement.

As affirmed by the record of votes of the members of your Committee on Water, Land, Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 870, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 870, S.D. 1, and be referred to the Committee on Ways and Means.