STAND. COM. REP. NO.  1103

Honolulu, Hawaii

                , 2009

RE:   S.B. No. 1677

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committees on Water, Land, & Ocean Resources and Judiciary, to which was referred S.B. No. 1677, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LANDS CONTROLLED BY THE STATE,"

beg leave to report as follows:

     The purpose of this bill is to require the adoption of a concurrent resolution by two-thirds majority vote of each house of the Legislature prior to the sale or exchange of ceded and other public lands.

     The Association of Hawaiian Civic Clubs, Koolaupoko Hawaiian Civic Club, Royal Order of Kamehameha I, and many concerned individuals supported this bill.  One concerned individual supported this bill with amendments.  The Hawaii Government Employees Association supported the intent of this bill.  The Hawaii Housing Finance and Development Corporation opposed this bill.  The Department of Land and Natural Resources, Office of Hawaiian Affairs, University of Hawaii System, the Attorney General, and several concerned individuals offered comments.

     Recognizing the need to reaffirm the Legislature's authority to oversee the permanent disposition of all lands held by the State without unduly hampering the State's ability to complete such transactions, your Committees have amended this bill by:

(1)  Broadening the legislative oversight to include the sale and exchange of all lands held by the State in fee simple title to parties other than the State, its agencies, or its entities;

     (2)  Making such sales and exchanges subject to the disapproval of a majority of both houses of the Legislature or a two-thirds majority of either house, rather than requiring the approval of a two-thirds majority of both houses;

     (3)  Requiring an informational briefing in the community where the property to be sold or exchanged is located prior to finalizing any proposal to sell or exchange the property;

     (4)  Adding provisions affirming the generality of the legislation to conform to Article XI, Section 5, of the Hawaii Constitution which limits the legislative powers over state-controlled lands to general laws;

     (5)  Changing the effective date to January 1, 2046, to encourage further discussion; and

     (6)  Making technical, nonsubstantive amendments for clarity consistency, and style.

     Your Committees realize that the broad scope of the oversight provision may cause difficulties for some State agencies and entities currently negotiating exchange and sale transactions.  Your Committees specifically request the Committee on Finance to consider the needs of University of Hawaii, West Oahu (UHWO) and its conformance to certain deed restrictions on property UHWO is attempting to convey in connection with the development of the campus.

     As affirmed by the records of votes of the members of your Committees on Water, Land, & Ocean Resources and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1677, S.D. 1, as amended herein, and recommend that it be referred to the Committee on Finance in the form attached hereto as S.B. No. 1677, S.D. 1, H.D. 1.

Respectfully submitted on behalf of the members of the Committees on Water, Land, & Ocean Resources and Judiciary,

____________________________ JON RIKI KARAMATSU, Chair

____________________________ KEN ITO, Chair