STAND. COM. REP. NO. 358

Honolulu, Hawaii

, 2025

RE: H.B. No. 1141

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Water & Land, to which was referred H.B. No. 1141 entitled:

"A BILL FOR AN ACT RELATING TO UPDATING PUBLIC LAND LEASES ISSUED PURSUANT TO CHAPTER 171, HAWAII REVISED STATUTES,"

begs leave to report as follows:

The purpose of this measure is to require lease extensions approved by the Board of Land and Natural Resources to be drafted on the most current approved lease form, be subject to the most current leasing practices and policies, not rules, of the Board of the Land and Natural Resources, and control over conflicting or inconsistent provisions in a lease being extended.

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

Your Committee finds that issues that were identified in Auditor's Report No. 19-12 and a subsequent House Investigative Committee report are of significance to the State, as the inability to update lease terms and conditions not only deprives the public of a fair return for the use of public lands, but also could lead to additional liability against the State and significant public health and safety issues, such as when structures beyond their useful life are left on public lands at the end of a lease. This measure increases departmental revenue and mitigates against future liability for public health and safety issues by allowing the Board of Land and Natural Resources to update lease terms and conditions upon extension of the lease.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for 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. 1141, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1141, 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,

____________________________

MARK J. HASHEM, Chair