STAND. COM. REP. NO. 3356

Honolulu, Hawaii

RE:    H.B. No. 1823

       H.D. 1

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 1823, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC LANDS,"

begs leave to report as follows:

     The purpose and intent of this measure is to require nonbinding mediation in disputes regarding the fair market value or fair market rental of public lands.

     The measure also specifies the procedures for binding arbitration if mediation does not resolve a dispute regarding fair market rental for the reopening of the rental to be paid on a lease.

     Your Committee received written comments in support of this measure from the Hawaii Farm Bureau Federation; David S. De Luz Sr., Enterprises, Inc.; Citizens for Fair Valuation; the Hawaii Aquaculture and Aquaponics Association; the Sand Island Business Association; and three individuals.  Written comments in opposition were received from the Department of Land and Natural Resources.

     Your Committee finds that mediation should be made available to resolve disputes regarding the fair market value or fair market rental of public lands in transactions involving the Board of Land and Natural Resources and private purchasers, owners, or leaseholders.  Your Committee believes that this measure will encourage parties to work collaboratively toward mutual solutions in valuation disputes regarding public lands.

     Your Committee has amended this measure by:

     (1)  Changing the effective date from July 1, 2020, to July 1, 2050, to facilitate further discussion on the measure; and

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

     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 H.B. No. 1823, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1823, H.D. 1, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair