STAND. COM. REP. NO. 825

Honolulu, Hawaii

RE: S.B. No. 1166

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1166, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RENTALS FOR PUBLIC LAND LEASES,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Board of Land and Natural Resources to approve rental payment reductions or waivers for leases when the lessee must incur substantial demolition costs or infrastructure improvement costs in order to utilize the leased premises.

Your Committee received written comments in support of this measure from the Department of Land and Natural Resources.

Written comments in opposition were received from Kupuna for the Moopuna.

The Office of Hawaiian Affairs submitted written comments on the measure.

Your Committee finds that the reduction or waiver of lease rental payments authorized by this measure will provide a greater incentive for developers to invest in the redevelopment of public land or provide the necessary infrastructure to facilitate further development of unimproved public land.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

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

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. 1166, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1166, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair