STAND. COM. REP. NO. 330-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 2677

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 Water, Land, & Hawaiian Affairs, to which was referred H.B. No. 2677 entitled:

"A BILL FOR AN ACT RELATING TO WATER RIGHTS,"

begs leave to report as follows:

The purpose of this measure is to allow for the direct negotiation of the disposition of water rights leases for temporary use on a month-to-month basis.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources, Hawaiian Electric, and Kauai Island Utility Cooperative. Your Committee received testimony in opposition to this measure from the Office of Hawaiian Affairs, Democratic Party of Hawaii, Young Progressives Demanding Action, Pono Hawaii Initiative, Earthjustice, Conservation Council for Hawaii, Sierra Club of Hawaii, Hawaii Alliance for Progressive Action, and one individual. Your Committee received comments on this measure from the Waioli Valley Taro Hui.

Your Committee finds that existing law permits a lease for water rights to be disposed of by public auction only, a process that can be burdensome if there is a likelihood that there will only be one bidder and can create great uncertainty for water users. This measure allows for the disposition of water rights through direct negotiation.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Water, Land, & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2677, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2677, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water, Land, & Hawaiian Affairs,

____________________________

RYAN I. YAMANE, Chair