Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Human Services and Housing, to which was referred H.B. No. 2692 entitled:

begs leave to report as follows:

The purpose of this bill is to give co-owners or co-lessors the right of first refusal if another co-owner or co-lessor wants to sell the lease fee interest.

The Queen Liliuokalani Trust, Small Landowners Association of Hawaii, Small Landowners Association of Oahu, and a concerned individual testified in support of this measure. The Community Association Institute-Hawaii Chapter, Hawaii Council of Associations of Apartment Owners, and Monarch Properties Inc., opposed this measure.

Your Committee finds that many co-owners and co-lessors of leased properties are families, trusts, and charitable organizations that often wish to sell the leased fee to each other. This measure gives these co-owners and co-lessors the right of first refusal and will allow them to keep properties in families and trusts.

As affirmed by the record of votes of the members of your Committee on Human Services and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2692 and recommends that it pass Second Reading and be referred to the Committees on Consumer Protection and Commerce and Judiciary.