STAND. COM. REP. NO. 3323

Honolulu, Hawaii

RE: H.B. No. 2579

H.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 H.B. No. 2579, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HILO COMMUNITY ECONOMIC DISTRICT,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Clarify that the Board of Land and Natural Resources shall not unilaterally amend the terms and conditions of any lease of public lands being extended pursuant to Act 149, Session Laws of Hawaii 2018, except as otherwise provided therein;

(2) Clarify that if the Board of Land and Natural Resources wishes to amend the terms of and conditions of any lease of public lands being extended to reflect the Board's most current lease form and leasing practices and policies, the lease form and leasing practices and policies must be included in the rules of the Board; and

(3) Define "lease of public lands".

Your Committee received testimony in support of this measure from one member of the Hawaiʻi County Council, the Japanese Chamber of Commerce and Industry of Hawaii, Kanoelehua Industrial Area Association, and one individual.

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

Your Committee finds that Act 149, Session Laws of Hawaii 2018 (Act 149), established a ten-year pilot project to authorize the Board of Land and Natural Resources (Board) to extend leases of public lands in the Hilo Community Economic District. However, language that explicitly allows the Board to unilaterally amend any terms and conditions of the extended lease to conform to the most current lease form and leasing practices and policies of the Board is missing from Act 149. Nevertheless, the Board has been approving extensions of leases pursuant to Act 149 by amending the lease terms and conditions to conform to the Board's most current lease form and leasing practices and policies. This measure will resolve any ambiguity regarding lease extensions within the Hilo community Economic District.

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. 2579, H.D. 1, and recommends that it pass Second Reading 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