STAND. COM. REP. NO. 348

Honolulu, Hawaii

RE:    S.B. No. 1530

       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 Tourism and Water, Land, and Housing, to which was referred S.B. No. 1530 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC LANDS,"

beg leave to report as follows:

     The purpose of this measure is to authorize the Department of Land and Natural Resources to extend leases of public lands for commercial, hotel, resort, or industrial use upon the approval of a development agreement to make substantial improvements to the premises.  The intent of this measure is to provide incentives for lessees of public land to reinvest in their premises.

     Your Committees received testimony in support of this measure from the Hawai‘i Tourism Authority.  Your Committees received testimony in opposition to this measure from the Department of Land and Natural Resources.  Your Committees received comments on this measure from the Office of Hawaiian Affairs. 

     Your Committees find that one of the key ways to increase tourism in Hawaii is to improve the physical infrastructure that supports the tourism industry.  This measure will provide current lessees of public land designated for certain uses with added incentives to make long-term investments in these properties. 

     Prior to decision making, your Committees considered proposed amendments to this measure that address some of the concerns regarding the Department of Land and Natural Resources' lack of funding to perform the additional responsibilities required under this measure.

     Accordingly, your Committees have amended this measure by:

     (1)  Deleting its contents and adopting the proposed amendments, which:

         (A)  Describe legislative findings and the necessity and purpose of this measure;

         (B)  Limit the types of uses for which lease extensions may be authorized under this measure to hotel and resort use and defining that term;

         (C)  Require that any lease extension granted pursuant to this measure be subject to and include the most current lease form and leasing practices and policies of the Board of Land and Natural Resources; and

         (D)  Require applicants for lease extensions under this measure to pay for all costs and expenses incurred by the Department of Land and Natural Resources in processing, analyzing, and negotiating lease extensions and relevant documents;

     (2)  Inserting an effective date of July 1, 2050, to allow for further discussion; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Tourism and Water, Land, and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1530, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1530, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Tourism and Water, Land, and Housing,

____________________________ DONOVAN M. DELA CRUZ, Chair

____________________________ DONNA MERCADO KIM, Chair