STAND. COM. REP. NO. 2586

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2389

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

 

Sir:

 

     Your Committee on Hawaiian Affairs, to which was referred S.B. No. 2389 entitled:

 

"A BILL FOR AN ACT RELATING TO THE HAWAIIAN HOMES COMMISSION ACT,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to prohibit lessees who sell or transfer land from obtaining subsequent leases of the same class of land unless the subsequent lease is acquired pursuant to section 209 of the Hawaiian Homes Commission Act, 1920, as amended, or the prior lease interest held by the lessee was a partial interest held with another lessee or lessees.

 

     Your Committee received testimony in support of this measure from one individual.  Your Committee received testimony in opposition to this measure from one individual.  Your Committee received comments on this measure from the Department of Hawaiian Home Lands.

 

     Your Committee finds that certain native Hawaiians who are eligible for a lease pursuant to the Hawaiian Homes Commission Act, 1920, as amended, have acquired a lease, sold or transferred their interest in the lease, and then placed their name on the waitlist for a second lease of Hawaiian home lands.  This has contributed to many otherwise eligible native Hawaiians never receiving a lease offer.  This measure will prohibit lessees who sell or transfer land from obtaining certain subsequent leases before those who have never received a lease offer, which will allow more Department of Hawaiian Home Lands beneficiaries who have never received a lease offer to receive one.

 

     Your Committee heard testimony from the Department of Hawaiian Home Lands that legislative action is not needed because of the existing administrative rules that place a preference on applicants who have not been awarded a lease, close the loophole on profit from sale of vacant or undeveloped lots and undivided interest, and prioritize transfers to qualified beneficiaries on the waitlist over beneficiaries not on a waitlist.

 

     Accordingly, your Committee has amended this measure by:

 

     (1)  Deleting its contents and inserting language to require the Department of Hawaiian Home Lands to adopt within two years from the effective date administrative rules requiring that a lessee who sells their lease for profit contributes to the Department of Hawaiian Home Lands' profit-sharing plan; provided that the profits be used for the benefit of the Department of Hawaiian Home Lands; provided further that the profit-sharing contribution requirement shall not apply to any person who sells their lease because of any extenuating circumstance; and

 

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

 

     As affirmed by the record of votes of the members of your Committee on Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2389, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2389, S.D. 1, and be referred to your Committee on Judiciary.

 


Respectfully submitted on behalf of the members of the Committee on Hawaiian Affairs,

 

 

 

________________________________

MAILE S.L. SHIMABUKURO, Chair