Prohibits real property lease provision that precludes rent reduction upon renegotiation of lease.

A BILL FOR AN ACT

SECTION 1. Section 519-1, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Whenever any agreement or document for the lease of private lands provides for the renegotiation of the rental amount or other recompense during the term of the lease and such renegotiated rental amount or other recompense is based, according to the terms of the lease, in whole or in part upon the fair market value of the land, or the value of the land as determined by its highest and best use, or words of similar import, such value, for the purposes of determining the amount of rental or other recompense, shall be calculated upon the use to which the land is restricted by the lease document. Any lease provision entered into on or after the effective date of this Act that prohibits or precludes a renegotiated rent in an amount less than the current rent shall be void."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.