STAND. COM. REP. NO. 614-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 2191

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 2191, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LEASE EXTENSIONS ON PUBLIC LAND,"

begs leave to report as follows:

The purpose of this measure is to authorize the Board of Land and Natural Resources to extend commercial, industrial, resort, or governmental leases, other than those to which the University of Hawaii is a party, that have not been sold or assigned within the last ten years, for lessees who commit to making substantial improvements to existing improvements.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources, County of Hawaii Office of the Mayor, and Prince Kuhio Plaza. Your Committee received testimony in opposition to this measure from the Office of Hawaiian Affairs, Kupuna for the Moopuna, and six individuals.

Your Committee finds that lessees of public lands whose leases may be nearing the end of the lease term have little incentive to make major investments in infrastructural improvements and ensure the long-term maintenance of the facilities. Your Committee further finds that because business lessees nearing the end of their lease often sell or assign their lease at a discount, it would be unfair to these prior assignors if the State granted extensions of leases. This measure will address the issue of deteriorating facilities by authorizing the Board of Land and Natural Resources to extend certain leases, that have not been sold or assigned within the last ten years, for lessees who commit to making substantial improvements to the existing improvements.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2191, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

____________________________

CHRIS LEE, Chair