STAND. COM. REP. NO. 1217

Honolulu, Hawaii

RE: H.B. No. 1141

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Water and Land, to which was referred H.B. No. 1141, H.D. 1, 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 and intent of this measure is to require that lease extensions approved by the Board of Land and Natural Resources be drafted on forms that reflect contemporary leasing practices and policies of the Board, and which shall control over conflicting or inconsistent provisions in the lease being extended.

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

Your Committee received comments on this measure from one individual.

Your Committee finds that existing law does not allow the Board of Land and Natural Resources (Board) to update the terms and conditions of leases using the most current lease form for lease extensions approved by the Board. Your Committee further finds that the Board's inability to update lease terms and conditions deprives the public of a fair return for the use of public lands and could also lead to potential additional liability against the State under certain conditions. Accordingly, this measure ensures that extended leases must be drafted according to the most current Board-approved terms and conditions.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2040, 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 H.B. No. 1141, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1141, H.D. 1, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

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

________________________________

LORRAINE R. INOUYE, Chair