STAND. COM. REP. NO.  181-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 1689

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Higher Education, to which was referred H.B. No. 1689 entitled:

"A BILL FOR AN ACT RELATING TO MAUNA KEA,"

begs leave to report as follows:

The purpose of this measure is to help ensure the allotment of ceded land revenues from Mauna Kea lands is appropriate by requiring:

     (1)  That the calculation of the pro rata share of ceded land revenues for the lease of Mauna Kea lands be based upon the fair market value of using the lands or of using facilities and programs related to the lands; and

     (2)  Twenty percent of lease revenues derived from leases of Mauna Kea lands to be transferred from the Mauna Kea Lands Management Special Fund to the Public Land Trust Fund, with specified conditions.

A concerned individual supported this measure.  The University of Hawaii, Office of Hawaiian Affairs, Department of the Attorney General, and a concerned individual provided comments.

     Your Committee recommends that the concept of cost versus fair market value in determining lease rent be evaluated by the subsequent committees.
     Your Committee has amended this measure by:

     (1)  Changing its effective date to July 1, 2525, to encourage further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1689, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1689, H.D. 1, and be referred to the Committees on Water & Land and Ocean, Marine Resources, & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Higher Education,

____________________________

ISAAC W. CHOY, Chair