Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Transportation and Government Operations, to which was referred S.R. No. 79 entitled:

begs leave to report as follows:

The purpose of this measure is to establish a Senate Special Committee to make recommendations on the appropriate lease rent for the Mauna Kea Summit lands.

Your Committee received testimony in support of this measure from the Office of Hawaiian Affairs. Comments were received from the University of Hawaii System.

The Mauna Kea summit land is ceded land and part of the public land trust. The lease agreement dated June 21, 1968, for a term of sixty-five years, between the Department of Land and Natural Resources as lessor, and the University of Hawaii as lessee, for the lease of the Mauna Kea forest reserve does not provide for any lease rent amount. Instead of charging lease rent, the university reportedly requires each facility to provide a percentage of its observatory time to the University of Hawaii Institute for Institute.

Your Committee finds that a long-standing and genuine issue has arose as to the amount of lease rent that should be paid for use of the Mauna Kea Summit land. A special committee is necessary to bring the parties together to confer and cooperate to reach a mutually agreeable solution to the issue.

As affirmed by the record of votes of the members of your Committee on Transportation and Government Operations that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 79 and recommends its adoption.