Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Judiciary and Hawaiian Affairs and Ways and Means, to which was referred H.B. No. 1928, H.D. 2, S.D. 1, entitled:

beg leave to report as follows:

The purpose of this measure is to require the Agribusiness Development Corporation, the Hawaii Community Development Authority, the Housing and Community Development Corporation of Hawaii, the High Technology Development Corporation, and the University of Hawaii to obtain legislative approval before disposing of state lands under their respective jurisdictions.

Your Committees received testimony in support of this measure from the Save Our Kaka`ako Coalition. The Agribusiness Development Corporation, the Hawaii Community Development Authority, and the High Technology Development Corporation submitted comments on this measure. The Housing and Community Development Corporation of Hawaii and the University of Hawaii submitted testimony in opposition to this measure.

Your Committees find that this measure needs the appropriate three readings in the House of Representatives. The Hawaii Supreme Court's decision in Taomae v. Lingle, 108 Hawaii 245 (2005), invalidated a constitutional amendment because the title of the bill was insufficient and because the bill failed to receive three readings in each house of the legislature. Although the language of the court's decision has been interpreted to be limited in its application to bills proposing a constitutional amendment, Article III, Section 15 of the Hawaii State Constitution makes it clear that the three reading requirement applies to all bills, providing that "[n]o bill shall become law unless it shall pass three readings in each house on separate days." Therefore, this bill should not pass out of the legislature unless the bill receives three readings by the House of Representatives in conformance with Article III, Section 15 of the Hawaii State Constitution.

Your Committees have amended this measure to make technical, nonsubstantive changes for clarity and style and to specify that section 7 shall take effect on July 1, 2006.

Your Committees note that concerns regarding constitutionality issues and the addition of a severability clause were raised during the hearing on this measure and the Committees would ask that these issues be left open for discussion as this measure moves to conference.

As affirmed by the records of votes of the members of your Committees on Judiciary and Hawaiian Affairs and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1928, H.D. 2, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as H.B. No. 1928, H.D. 2, S.D. 2.