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 S.C.R. No. 27 entitled:

begs leave to report as follows:

The purpose of this measure is to require the Department of Land and Natural Resources to evaluate the problems associated with the public land leases that are due to expire soon.

Testimony supporting this measure was received from the Department of Land and Natural Resources and Mayor of the County of Hawaii.

Your Committee finds that many economically important enterprises in the State are conducted on public lands by way of a lease. Many of these leases have been let for several decades during which time the lessees have established businesses on the public land. An inordinate number of these leases will be expiring soon and the effect on the economy could be dramatic, particularly during this time when the state and national economies are struggling to recover from the recent recession. Therefore, the ramifications of the imminent en masse expiration of public land leases require evaluation so contingencies may be accommodated to ensure the stability of the state economy.

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 concurs with the intent and purpose of S.C.R. No. 27 and recommends that it be referred to the Committee on Ways and Means.