STAND. COM. REP. NO. 1577

Honolulu, Hawaii

RE:    H.B. No. 260

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 260, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO APPRAISALS OF RESOURCE VALUE LANDS,"

begs leave to report as follows:

     The purpose of this measure is to establish procedures for the appraisal of land having value as a resource to the State prior to the acquisition of the land by the State.

     Specifically, this measure allows the Board of Land and Natural Resources to:

     (1)  Accept an existing appraisal prepared on behalf of a nonprofit organization if:

          (A)  The appraisal was completed within one year before the decision of the Board of Land and Natural Resources to approve the acquisition of the land; and

          (B)  The Board of Land and Natural Resources finds that the appraisal was performed according to accepted professional standards for land appraisal; or

     (2)  Contract for not more than three independent appraisals,

and submit the appraisals to the Attorney General for review and approval prior to any acquisition.

     Your Committee received comments in support of this measure from The Nature Conservancy, Hawaii Program.  The Department of Land and Natural Resources submitted comments in support, but with recommended amendments to this measure.

     Your Committee finds that this measure will provide necessary assurances that any lands that the State acquires as lands having value as a resource to the State are acquired at a fair market value or less.

     Your Committee has amended this measure by providing that no appraisal shall be required for the acquisition of any interest in land having value as a resource to the State if that interest in land is being donated to the State.

     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 H.B. No. 260, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 260, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair