REPORT TITLE:
State agricultural leases


DESCRIPTION:
Authorizes the department of land and natural resources to
negotiate long-term leases with certain permitees of agricultural
land.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3024
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO REVOCABLE PERMITS FOR STATE AGRICULTURAL LEASES.
 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Widespread development of farm ownership is one
 
 2 of several stipulated uses for proceeds from the public land
 
 3 trust.  The continued growth and development of diversified
 
 4 agriculture throughout the State is an objective of the Hawaii
 
 5 state plan as stated in chapter 226, Hawaii Revised Statutes.
 
 6      Certain permittees of agricultural lands have occupied such
 
 7 state lands for long periods of time, but because their tenure is
 
 8 on a month-to-month basis, they do not have security in the
 
 9 assurance of continued tenure on the land and are not able to
 
10 obtain financing for improving their farm because financing is
 
11 not available due to the lack of long-term tenure.  Farmers who
 
12 depend on the state land for their livelihood are constrained by
 
13 their uncertain tenure from developing the land and using it more
 
14 productively.
 
15      The purpose of this Act is to authorize the department of
 
16 land and natural resources to negotiate long-term leases under
 
17 specific terms, conditions, and restrictions imposed by this Act
 
18 with certain permittees of agricultural land.  The legislature
 

 
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                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1 finds that it is in the public interest to assist qualifying
 
 2 permittees who depend on farming the state land for a livelihood,
 
 3 that the purpose of this Act is consistent with objectives of the
 
 4 Hawaii state plan, and further if the offer of assistance
 
 5 provided by this Act is accepted by qualifying permittees, the
 
 6 State would realize greater returns from the long-term
 
 7 disposition of lands now under revocable permits.
 
 8      SECTION 2.  Section 171-40, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "§171-40  Expired leases; holdover.  Upon expiration of the
 
11 lease term, if the leased land is not otherwise disposed of, the
 
12 board of land and natural resources may allow the lessee to
 
13 continue to hold the land for a period not exceeding one year
 
14 upon such rent, terms, and conditions as the board may prescribe;
 
15 provided that if, immediately prior to the expiration of the
 
16 lease, the land was cultivated with crops having ratoons for at
 
17 least one cycle, as defined hereinafter, the board may permit the
 
18 lessee to continue to hold the leased land until the crops from
 
19 the last remaining cycle have been harvested.  The term "cycle"
 
20 as used in this section means the period required to plant and
 
21 cultivate the original crop, including the harvesting of the
 
22 first ratoon, being a period exceeding two years.
 
23      Upon expiration of the one-year extension, if the board has
 

 
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                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1 not yet decided upon the re-lease of the land or reservation for
 
 2 other purposes, the board may either:
 
 3      (1)  Issue [issue] a temporary permit to the lessee, subject
 
 4           to section 171-55 and the rent and such other terms and
 
 5           conditions as the board may prescribe[.]; or
 
 6      (2)  Enter into an agricultural lease of not less than
 
 7           fifteen years and not more than fifty-five years with
 
 8           any person who:
 
 9           (A)  Already holds a revocable permit for agricultural
 
10                purposes issued in accordance with section 171-55;
 
11           (B)  Has continued to occupy the public land previously
 
12                leased;
 
13           (C)  Does not own agriculturally-zoned land of twenty
 
14                five acres or more in the State, individually or
 
15                jointly with spouse, or whose spouse does not own
 
16                twenty five acres or more of agriculturally-zoned
 
17                land in the state; and
 
18           (D)  Has been deemed by the department to be a good
 
19                steward of the public lands leased.
 
20      In negotiating and executing a lease under subsection 2, the
 
21 board shall:
 
22      (1)  Require appraisal of the parcel in accordance with
 
23           section 171-17(b);
 

 
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 1      (2)  Impose other such lease provisions, restrictions, and
 
 2           conditions provided by sections 171-35, 171-36, and
 
 3           171-37 as may be required to protect the state's
 
 4           interests;
 
 5      (3)  Recover from the lessee the costs of surveying and
 
 6           subdividing the parcel incurred by the department; and
 
 7      (4)  Require the payment of annual lease rent based on fair
 
 8           market value and a premium, computed at twenty-five per
 
 9           cent of annual lease rent, with the premium to be added
 
10           to the annual lease rent for each year of the lease
 
11           equal to the number of years that the lessee had
 
12           occupied the land under a revocable permit."
 
13      SECTION 3.  Within six months from the effective date of
 
14 this Act, the department shall notify in writing the permittees
 
15 of lands eligible for lease negotiations under this Act and shall
 
16 inform the permittees of the terms, conditions, and restrictions
 
17 provided by this Act.  Any permittee may apply for a lease,
 
18 provided that the application shall be submitted to the
 
19 department in writing within thirty days from the date of receipt
 
20 of notification; provided further that the department may require
 
21 documentary proof of any applicant to determine that the
 
22 applicant meets eligibility and qualification requirements for a
 
23 lease as specified by this Act.
 

 
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                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      SECTION 4.  There is appropriated out of the general
 
 2 revenues of the State of Hawaii the sum of $         or so much
 
 3 thereof as may be necessary for fiscal year 2000-2001 to
 
 4 implement the purposes of this Act.
 
 5      SECTION 5.  The sum appropriated shall be expended by the
 
 6 department of land and natural resources for the purposes of this
 
 7 Act.  The department of land and natural resources may hire
 
 8 temporary personnel and consultants without regard to the
 
 9 requirements of chapters 76 and 77, and section 78-1 to carry out
 
10 duties and responsibilities necessary in implementing this Act.
 
11      SECTION 6.  This Act shall take effect on July 1, 2000.
 
12 
 
13                       INTRODUCED BY:  ___________________________