REPORT TITLE:
Public Lands; Leases


DESCRIPTION:
Allows lessees of public land to sell the improvements to their
leased public land to the successor lessee.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1492
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO PUBLIC LAND LEASES.



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

 1      SECTION 1.  The legislature finds that one of Hawaii's most
 
 2 important resource, our public lands, may be losing its value
 
 3 because of a variety of short-term views about how these lands
 
 4 are used, cultivated, protected, fertilized, and so on.  The
 
 5 State's public lands provide income to the State's coffers while
 
 6 providing farmers and ranchers with a viable source of
 
 7 sustainable agriculture, but the State must have a more
 
 8 responsible attitude towards land leases and the improvements
 
 9 made thereon by the lessees.  There must be some incentive for
 
10 lessees to improve and maintain these public lands.  The purpose
 
11 of this Act is to give the present lessee of state public land to
 
12 own any improvements made thereon.
 
13      SECTION 2.  Section 171-32, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "§171-32  Policy.  Unless otherwise specifically authorized
 
16 in this chapter or by subsequent legislative acts, all
 
17 dispositions shall be by lease only, disposed of by public
 
18 auction in accordance with the procedure set forth in sections
 
19 171-14 and 171-16.  It shall be the policy of the board that
 

 
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 1 improvements made to leased public lands enhance the value of the
 
 2 land and accrue to the long term value of the asset."
 
 3      SECTION 3.  Section 171-33, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§171-33  Planning; generally.  Prior to any notice of
 
 6 intended disposition, the board of land and natural resources
 
 7 shall:
 
 8      (1)  Classify the land according to its use or uses as
 
 9           provided in this chapter;
 
10      (2)  Determine the specific use or uses for which the
 
11           disposition is intended;
 
12      (3)  Parcel land into units of minimum size areas related to
 
13           the intended specific use or uses and sufficient for an
 
14           economic operation, hereinafter called an "economic
 
15           unit";
 
16      (4)  Determine the requirements for the construction of
 
17           building or other improvements, which are necessary or
 
18           desirable to encourage the highest use of the land;
 
19      (5)  Determine the upset price or lease rental, based upon
 
20           the fair market value of the land employed to the
 
21           specific use or uses for which the disposition is being
 
22           made, with due consideration for all of the terms and
 
23           conditions of the disposition;
 

 
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 1      (6)  Determine the necessary conditions of disposition which
 
 2           will discourage speculation;
 
 3      (7)  In the case of leases, determine the minimum tenure
 
 4           necessary to support the intended use or uses and the
 
 5           necessity for periodic rent openings in long-term
 
 6           leases to assure the State a fair return; provided that
 
 7           improvements to the leasehold shall be sold to the new
 
 8           lessee at a value determined following an appraisal;
 
 9      (8)  Prepare the proposed documents and make them available
 
10           for public inspection; and
 
11      (9)  Determine, two years before the expiration of the term
 
12           of any lease, whether the premises are to be demised
 
13           for the same use or uses under a new lease or whether
 
14           all or any part thereof is to be reserved for other use
 
15           or uses and then promptly notify the lessee of the
 
16           determination."
 
17      SECTION 4.  Section 171-34, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§171-34  Planning; intensive agricultural and pasture uses.
 
20 In addition to the requirements set forth in section 171-33, if
 
21 the intended disposition is for intensive agricultural or pasture
 
22 uses, the board of land and natural resources shall:
 
23      (1)  Make or cause to be made an on-the-ground inspection of
 

 
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 1           the land;
 
 2      (2)  Secure data or information from the land study bureau
 
 3           relating to such parcel;
 
 4      (3)  Review any other pertinent information with respect to
 
 5           the land and the surrounding area; and
 
 6      (4)  Based upon information obtained, prepare a written
 
 7           report on the land, which report shall include the
 
 8           following:
 
 9           (A)  The class of the land within the specific use for
 
10                which disposition is intended;
 
11           (B)  The condition of the land with respect to its
 
12                state of development;
 
13           (C)  Existing improvements, if any; provided that there
 
14                shall be an appraisal made by a licensed appraiser
 
15                of these improvements;
 
16           (D)  Extent of uncontrolled erosion if any;
 
17           (E)  Nature of forage; and
 
18           (F)  Extent of infestation with noxious weeds."
 
19      SECTION 5.  Section 171-35, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "§171-35  Lease provisions; generally.  Every lease issued
 
22 by the board of land and natural resources shall contain:
 
23      (1)  The specific use or uses to which the land is to be
 

 
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 1           employed;
 
 2      (2)  The improvements required; provided that a minimum
 
 3           reasonable time be allowed for the completion of the
 
 4           improvements;
 
 5      (3)  Restrictions against alienation as set forth in section
 
 6           171-36;
 
 7      (4)  The rent, as established by the board or at public
 
 8           auction, which shall be payable not more than one year
 
 9           in advance, in monthly, quarterly, semiannual, or
 
10           annual payments;
 
11      (5)  Where applicable, adequate protection of forests,
 
12           watershed areas, game management areas, wildlife
 
13           sanctuaries, and public hunting areas, reservation of
 
14           rights-of-way and access to other public lands, public
 
15           hunting areas, game management areas, or public
 
16           beaches, and prevention of nuisance and waste; [and]
 
17      (6)  Such other terms and conditions as the board deems
 
18           advisable to more nearly effectuate the purposes of the
 
19           state constitution and of this chapter[.]; and
 
20      (7)  An appraisal of all improvements and the value thereof
 
21           that was made by a lessee; provided that:
 
22           (A)  Appraisal costs shall be shared equally between
 
23                the lessee and the new tenant; and
 

 
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 1           (B)  A subsequent lessee as a new tenant shall purchase
 
 2                these improvements, at the time of transfer of the
 
 3                lease."
 
 4      SECTION 6.  Statutory material to be repealed is bracketed.
 
 5 New statutory material is underscored.
 
 6      SECTION 7.  This Act shall take effect upon its approval.
 
 7 
 
 8                              INTRODUCED BY:______________________