STAND. COM. REP. NO. 3003

Honolulu, Hawaii

RE: S.B. No. 2596

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2596 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to increase the utilization of state property.

Specifically, this measure requires real property leases between state government entities to cost no more than $1 per year.

Your Committee received written comments in support of this measure from one individual.

Your Committee received written comments on this measure from the Department of Land and Natural Resources and University of Hawaii.

Your Committee finds that state agencies should work together for the public good and that, therefore, real property leases between state agencies should not be for profit. Your Committee further finds that capping the cost of certain intergovernmental leases will help to increase the utilization and productivity of state property.

Your Committee has amended this measure by:

(1) Adding language that exempts leases in which the real property subject to the lease is being used by a department to meet a core responsibility of that department, as expressly provided in sections 26-5 through 26-21, Hawaii Revised Statutes; and

(2) Making a technical nonsubstantive edit for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2596, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2596, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair