Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 801, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to appropriate funds to provide low-interest home construction loans to displaced Kalapana residents with long-term leases on ceded lands in the Kikala-Keokea homestead area.

The bill also repeals the Kalapana disaster relief program.

Specifically, the measure appropriates $350,000 for each year of the 2005-2007 fiscal biennium to the Kikala-Keokea revolving fund (fund). Your Committee finds that the fund was established in 2001 to provide low-interest home construction loans to displaced Kalapana residents with long-term leases on ceded lands in the Kikala-Keokea homestead area.

Your Committee also finds that the Kalapana disaster relief program (program) was established in 1991 to provide low-interest acquisition, home construction, and mortgage loans to Kalapana residents who were dispossessed of their homes and land by the Kilauea eruptions. One mortgage loan was made under the program, and this loan has since been paid off. As such, your Committee believes that this program should be repealed.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 801, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 801, S.D. 2.