STAND. COM. REP. NO.  544

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1791

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Water, Land, Ocean Resources & Hawaiian Affairs, to which was referred H.B. No. 1791 entitled:

"A BILL FOR AN ACT RELATING TO IOLANI PALACE,"

begs leave to report as follows:

     The purpose of this bill is to preserve, restore, interpret, share, and celebrate the unique cultural, historical, and spiritual qualities of Iolani Palace for the benefit of native Hawaiians and the people of Hawaii and the world, by:

     (1)  Directing the chairperson of the Board of Land and

          Natural Resources to enter into a 999 year lease of the

          historic site of Iolani Palace with the Friends of

          Iolani Palace, a non-profit organization that is

          responsible for the stewardship of Iolani Palace, by

          direct negotiation and without a public auction; and

     (2)  Providing that under the lease, the Friends of Iolani

          Palace shall protect, manage, display, develop, and

          interpret, the historic site of Iolani Palace and its

          buildings, adjacent lands, historic contents,

          furnishings, collections, and artifacts.

This bill also specifically provides that the lease with Friends of Iolani Palace does not relieve the State of its funding obligations for the maintenance and preservation of Iolani Palace.

     The Friends of Iolani Palace, Association of Hawaiian Civic Clubs, Pearl Harbor Hawaiian Civic Club, and Hawaiian Civic Club of Hilo testified in support of this bill.  The Office of Hawaiian Affairs supported this bill with amendments.  The Department of Land and Natural Resources opposed this measure.

     Upon further consideration, your Committee has amended this bill by:

     (1)  Changing the authorized lease period from 999 years to

          an unspecified number of years; and

     (2)  Making technical, nonsubstantive amendments for style,

          clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Water, Land, Ocean Resources & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1791, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1791, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water, Land, Ocean Resources & Hawaiian Affairs,

____________________________

KEN ITO, Chair