STAND. COM. REP. NO. 2325

Honolulu, Hawaii

RE: S.B. No. 2153

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. 2153 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:

(1) Repeal requirements for lessees to seek approval for lease extensions from the Board of Land and Natural Resources; and

(2) Require the Department of Land and Resources to utilize the current tax assessed value for lease extensions.

Your Committee received testimony in support of this measure from one member of Hawaiʻi County Council, Hawaiian Electric, and McCully Works.

Your Committee received testimony in opposition to this measure from the Department of Land and Natural Resources, League of Women Voters of Hawaii, and UNITE HERE Local 5.

Your Committee finds that the State has a fiduciary duty to manage state lands in the best interests of the public by enhancing state revenues and promoting the social, environmental, and economic well-being of Hawaii's people. As the majority landowner in east Hawaii, the State has an enormous influence on the vision, economic development, and overall success of the east Hawaii community. However, under existing laws, many public land lessees are subject to the Board of Land and Natural Resources' lengthy approval processes for lease extensions and renegotiations, small maintenance projects, and major renovations. Your Committee also finds that lessees improve their lands and revitalize the areas in which their lands are located. This measure will incentivize lessees to continue doing so by streamlining the lease extension process.

Your Committee has amended this measure by:

(1) Clarifying that the Board of Land and Natural Resources shall retain oversight over lease extension applications;

(2) Clarifying that the Board of Land and Natural Resources may only eliminate any restrictions specified in section 171-36(a), Hawaii Revised Statutes;

(3) Amending section 1 to reflect its amended purpose;

(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. 2153, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2153, 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