Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Water, Land, and Agriculture, to which was referred S.B. No. 3191 entitled:

begs leave to report as follows:

The purpose of this measure is to clarify the calculation of land for private noncommercial piers in Kaneohe Bay.

Testimony in opposition to this measure was submitted by the Department of the Attorney General and Department of Land and Natural Resources (DLNR). Comments were also submitted by Protect Our Shoreline Ohana.

Your Committee finds that despite the testimony in opposition, this measure is necessary to:

Your Committee finds that applying the fifty per cent commercial rate to the fair market value of the residential fast lands for private noncommercial piers in Kaneohe Bay is not justified. These private noncommercial piers do not produce any income and the adjoining residential properties are not dependent on the piers. The submerged lands are inaccessible, and there is no demand for their use except to build piers by the adjoining property owners. The fast and submerged lands should not be considered a single residential unit. The rental is on the submerged land, which essentially has no value, and not on the pier.

Your Committee further finds that it is more reasonable to apply the fifty per cent valuation multiplier to the assessed value of the adjoining fast land only, without improvements for real property tax purposes.

Your Committee has amended this measure to make technical, nonsubstantive changes.

As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3191, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3191, S.D. 1, and be referred to the Committee on Ways and Means.