STAND. COM. REP. NO. 918

Honolulu, Hawaii

RE:    H.B. No. 397

       H.D. 2

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committees on Hawaiian Affairs and Water, Land, and Housing and Judiciary and Labor, to which was referred H.B. No. 397, H.D. 2, entitled:

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

beg leave to report as follows:

     The purpose and intent of this measure is to require:

     (1)  Specificity in all concurrent resolutions for the review of proposed exchanges, sales, or gifts of state land, including whether the land was classed as government or crown lands prior to August 15, 1895; and

     (2)  A draft copy of the concurrent resolution be submitted to the Office of Hawaiian Affairs at least three months prior to the appropriate legislative session.

     Your Committees received testimony in support of this measure from the Office of Hawaiian Affairs, Hawaii Housing Finance and Development Corporation, Native Hawaiian Legal Corporation, Association of Hawaiian Civic Clubs, Aha Kiole Advisory Committee, ‘Ilio‘ulaokalani Coalition, and three individuals.  Your Committees received testimony in opposition to this measure from one individual.  Your Committees received comments on this measure from the Department of Land and Natural Resources.

     Your Committees find that Act 176, Session Laws of Hawaii 2009, established a more comprehensive process for the sale or gift of state-owned land, and a larger oversight role for the Legislature to assure that key information about certain sales, gifts, or exchanges of land is shared with the Legislature and the Office of Hawaiian Affairs.  During the 2010 Regular Session, when substantial numbers of "Act 176 resolutions" moved through both houses of the Legislature, two issues regarding the process emerged.  Your Committees find that, first, the resolutions were not always informative as to whether the land was formerly crown or government land of the Kingdom of Hawai‘i.  Second, the Office of Hawaiian Affairs was hindered in full consideration of the resolutions because of the limited time between the receipt of the resolutions by the Office of Hawaiian Affairs and the Legislature's consideration of the resolutions.

     Your Committees find that this measure will address both of those concerns and ensure that the Legislature and the Office of Hawaiian Affairs exercise their respective roles in a more timely and comprehensive manner.

     Your Committees have amended this measure by changing the effective date from January 7, 2059, to upon approval.

     As affirmed by the records of votes of the members of your Committees on Hawaiian Affairs and Water, Land, and Housing and Judiciary and Labor that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 397, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 397, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Hawaiian Affairs and Water, Land, and Housing and Judiciary and Labor,

____________________________ DONOVAN M. DELA CRUZ, Chair	____________________________ BRICKWOOD GALUTERIA, Chair
	____________________________ CLAYTON HEE, Chair