STAND. COM. REP. NO. 691

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 Committee on Ways and Means, to which was referred S.B. No. 1530, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the Board of Land and Natural Resources to extend hotel and resort leases upon approval of a proposed development agreement to make substantial improvements to the premises.

     Your Committee received written comments in support of this measure from William J. Aila, Jr., Chairperson, Department of Land and Natural Resources; and Mike McCartney, President and Chief Executive Officer, Hawaii Tourism Authority.  Your Committee received comments on this measure from the Office of Hawaiian Affairs.

     Your Committee finds that improvements to hotel and resort infrastructure are important to the growth and expansion of Hawaii businesses and the enhancement of Hawaii's visitor infrastructure.  Authorizing the extension of leases will give hotels and resorts incentive to improve their properties, which is particularly important to accommodate an anticipated increase in visitors due to new direct mainland flights starting next summer.

     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 S.B. No. 1530, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

DAVID Y. IGE, Chair