STAND. COM. REP. NO. 476-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 2467

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 2467, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RENT CREDITS FOR DEMOLITION AND INFRASTRUCTURE COSTS ON PUBLIC LAND LEASES,"

begs leave to report as follows:

The purpose of this measure is to repeal the sunset provision of Act 222, Session Laws of Hawaii 2021, to allow the Board of Land and Natural Resources to continue to approve rental reductions or waivers for leases that require substantial demolition costs or infrastructure improvement costs for the lessee to utilize the premises.

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

Your Committee finds that this measure would permanently authorize the Board of Land and Natural Resources to approve a rent reduction or waiver for up to twenty years, not to exceed the amount of the lessee's total expenditures for demolition of improvements or provision of infrastructure. This would allow the Department of Land and Natural Resources to continue to negotiate long-term leases pursuant to commercially reasonable standards, while incentivizing the development of public lands.

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2467, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair