STAND. COM. REP. NO. 2322

Honolulu, Hawaii

RE: S.B. No. 3160

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. 3160 entitled:

"A BILL FOR AN ACT RELATING TO INSPECTIONS ON PUBLIC LAND,"

begs leave to report as follows:

The purpose and intent of this measure is to establish a statutory framework for inspections of public land leases, licenses, and revocable permits by the Department of Land and Natural Resources.

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

Your Committee finds that under chapter 171, Hawaii Revised Statutes, and the various land dispositions approved by the Board of Land and Natural Resources, the Department of Land and Natural Resources (Department) has the authority to periodically inspect the premises under lease, license, or revocable permit. However, the Department land agents are typically not architects, engineers, or licensed contractors and may not be qualified to identify components of existing structures on the premises in need of repair or replacement. The House Investigative Committee, established under House Resolution No. 164 of the 2021 Regular Session, recommended that the Department require lessees to pay for third-party inspectors selected by the Department to conduct physical inspections of the leased property every five years. If the third-party inspector finds any defaults with the lease terms, the lessee shall be required to take any corrective actions recommended by the inspector. This measure will conserve the Department's limited funds by avoiding situations where a lease, license, or revocable permit expires or is terminated with dilapidated improvements on it.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, 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 S.B. No. 3160, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3160, 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,

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LORRAINE R. INOUYE, Chair