Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2804 entitled:

begs leave to report as follows:

The purpose of this measure is to allow the Board of Land and Natural Resources to waive the requirement to obtain Board consent to subleases under public land leases.

Your Committee finds that existing restrictions on subletting all or portions of the demised premises without the approval of the Board is appropriate in most lease situations. However, where the intent is for the property to ultimately be leased to multiple subtenants, your Committee finds that it is appropriate for the lessor to permit the lessee to issue tenant subleases without the lessor's consent. The ability to issue subleases without the lessor's consent in these situations is critical to the lessee's ability to attract viable tenants for the property.

Your Committee agrees with the intent of this measure, and finds that it will provide the Board with the flexibility to determine appropriate situations in which subletting should be permitted under existing leases, as well as enhance the Department's ability to attract lessees to develop vacant state lands.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2804 and recommends that it pass Third Reading.