Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Judiciary and Hawaiian Affairs and Transportation, Military Affairs, and Government Operations, to which was referred S.B. No. 2759 entitled:

beg leave to report as follows:

The purpose of this measure is to ameliorate the effects of real property tax increases on Hawaiians living on kuleana land.

Testimony in support of this measure was submitted by the Office of Hawaiian Affairs and a County of Maui Council member. Comments were submitted by the Hawaiian Political Action Council of Hawaii.

Your Committees find that the current economic environment has resulted in escalating real property taxes throughout the State. However, these increases have adversely affected many Hawaiian families who live on kuleana lands because they are unable to pay for the taxes. As a result, many of these families face the loss of the land and legacy that generations have worked so hard to establish. This bill will aid Hawaiian families in retaining land granted to their families for generations past.

Your Committees also noted concerns regarding whether the State can mandate a county to enact ordinances. Specifically, article VIII, section 3 of the Constitution of the State of Hawaii, provides:

As affirmed by the records of votes of the members of your Committees on Judiciary and Hawaiian Affairs and Transportation, Military Affairs, and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2759 and recommend that it pass Second Reading and be placed on the calendar for Third Reading.