STAND. COM. REP. NO. 2330

Honolulu, Hawaii

RE: S.B. No. 2759

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Water and Land, to which was referred S.B. No. 2759 entitled:

"A BILL FOR AN ACT RELATING TO LAND LEASES,"

begs leave to report as follows:

The purpose and intent of this measure is to prohibit the State from leasing any public lands, or extending the lease of any public lands, to any individual, corporation, or federal agency that is not in good standing with the State or that has not met all financial, contractual, and legal obligations.

Your Committee received testimony in support of this measure from the Native Hawaiian Legal Corporation, Sierra Club of Hawaiʻi, and Hawaiʻi Peace and Justice.

Your Committee received testimony in opposition to this measure from the Hawaii Military Affairs Council and Hawaii Harbors Users Group.

Your Committee received comments on this measure from the Department of Land and Natural Resources, Department of Transportation, and one individual.

Your Committee finds that most landlords require their tenants to be in good standing, especially before renewing a lease. This includes ensuring that the tenant has met all financial, contractual, and legal obligations. Your Committee also finds that, as a landlord, the State should ensure that all of its lessees meet these obligations, whether the lessees are private individuals, corporations, or the federal government. Furthermore, the State should exercise its right to terminate a lease when a lessee engages in criminal activity on the property. This measure will ensure that lands leased by the State is in good hands by prohibiting the State from leasing land to tenants that do not fulfill their legal obligations.

Your Committee has amended this measure by:

(1) Specifying that the lease restrictions shall also encompass certain state land excepted in section 171-72, Hawaii Revised Statutes;

(2) Deleting language that would have reimbursed money to the State for the increased cost of consumer goods in Hawaii pursuant to title 46 United States Code sections 861-889, in an amount determined by the Office of the Governor;

(3) Exempting leases and dispositions made by the Department of Transportation from this measure;

(4) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(5) 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. 2759, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2759, S.D. 1, and be referred to your Committee on Judiciary.

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

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LORRAINE R. INOUYE, Chair