STAND. COM. REP. NO. 2322

Honolulu, Hawaii

RE: S.B. No. 3133

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Water and Land, to which was referred S.B. No. 3133 entitled:

"A BILL FOR AN ACT RELATING TO DISPOSITION OF PUBLIC LANDS BY NEGOTIATION,"

begs leave to report as follows:

The purpose and intent of this measure is to include leases for commercial, industrial, and hotel or resort purposes as eligible for disposition by negotiation.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources. Your Committee received testimony in opposition to this measure from the Sierra Club of Hawai‘i, Kūpuna for the Mo‘opuna, Unite Here! Local 5 Hawaii, and one individual.

Your Committee finds that revenues generated from public land leases provide the Department of Land and Natural Resources with funds to support its programs, mission, and stewardship of Hawaii's conservation and watershed lands. Public lands across the State provide many economic development and growth and career opportunities. However, the public auction process to dispose of leases for commercial, industrial, and hotel or resort purposes has become cumbersome and uncertain, deterring some potential lessees from participating in the process. While some community voices have expressed concern regarding transparency and public engagement with the public auction process, this measure will allow certain leases to be eligible for disposition by negotiation to allow for expedited leasing processes for prospective lessees to engage in productive use of public lands.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; 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 Water and Land that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3133, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3133, S.D. 1, and be referred to your Committees on Ways and Means and Judiciary.

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

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LORRAINE R. INOUYE, Chair