STAND. COM. REP. NO. 643

Honolulu, Hawaii

RE:    S.B. No. 1818

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Intergovernmental and Military Affairs, to which was referred S.B. No. 1818 entitled:

"A BILL FOR AN ACT RELATING TO COUNTY CONCESSIONS,"

begs leave to report as follows:

     The purpose of this measure is to exempt nonprofit corporations that are granted a concession or concession space by a county from the fifteen-year time limitation on the grant of county concessions or concession space if the council of the respective county approves a resolution that waives the limitation.

     Testimony in support of this measure was submitted by the Office of the Mayor, County of Maui and the County Council, County of Maui.

     Your Committee finds that it is important to provide the counties with more leverage in granting nonprofit entities with longer lease terms.  Leases of greater than fifteen years are often necessary to help worthy nonprofit organizations secure grant funds and to perform capital improvements for programs that provide substantial community benefits. 

     To this end, your Committee amended this measure to further clarify the language regarding exempting nonprofit organizations from the fifteen-year limit on the grant of county concession or concession space.

     It is the intent of your Committee to provide an exemption to nonprofit corporations from the fifteen-year limit on the grant of county concessions or concession space, providing each county with greater authority and discretion over the use and management of county property.

     As affirmed by the record of votes of the members of your Committee on Intergovernmental and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1818, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1818, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Intergovernmental and Military Affairs,

____________________________

LORRAINE R. INOUYE, Chair