STAND. COM. REP. NO. 3026

Honolulu, Hawaii

RE: S.B. No. 3157

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3157, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to encourage the productive use of public lands.

Specifically, this measure authorizes the use of direct negotiation to dispose of public land leases for agricultural, commercial, industrial, resort, and hotel purposes.

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

Your Committee received written comments in opposition to this measure from UNITE HERE Local 5 and League of Women Voters of Hawaii.

Your Committee received written comments on this measure from a member of the Hawaii County Council.

Your Committee finds that the public auction process that is normally used to dispose of leases has become protracted, cumbersome, and uncertain, to the extent that it discourages participation by potential lessees. As a result, certain state properties have remained vacant, generating no income and serving no public benefit, while in some cases incurring management costs for the Department of Land and Natural Resources.

Your Committee has amended this measure by:

(1) Providing that only public lands that do not qualify for disposition under section 171-59(a), Hawaii Revised Statutes, are eligible for disposition by negotiation under section 171-59(b), Hawaii Revised Statutes;

(2) Requiring the Board of Land and Natural Resources to approve the disposition;

(3) Correcting the text of section 171-59(b), Hawaii Revised Statutes, to reflect the printed version of the Hawaii Revised Statutes; and

(4) Changing the effective date to July 1, 2024.

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. 3157, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3157, 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