STAND. COM. REP. NO. 83

Honolulu, Hawaii

, 2021

RE: H.B. No. 1012

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Water & Land, to which was referred H.B. No. 1012 entitled:

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

begs leave to report as follows:

The purpose of this measure is to authorize the Board of Land and Natural Resources (Board) to approve rental reductions or waivers for leases that require substantial demolition costs or infrastructure improvement costs in order for the lessee to utilize the premises.

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

Your Committee finds that this measure seeks to authorize the Board to approve a rent reduction or waiver for up to twenty years that shall not exceed the amount of the lessee's total expenditures for demolition of improvements or provision of infrastructure. This measure is part of an effort by the Department of Land and Natural Resources to bring its leasing practices to commercially reasonable standards.

Your Committee has amended this measure by:

(1) Changing the effective date to January 1, 2050, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1012, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1012, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

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

____________________________

DAVID A. TARNAS, Chair