Report Title:

Maximum commercial lease term; Hawaiian Homes Commission Act

Description:

Extends the maximum term on commercial leases on Hawaiian home lands from 65 to 99 years.  (PROPOSED SB3048 HD1)

THE SENATE	S.B. NO.	3048
TWENTY-FOURTH LEGISLATURE, 2008		S.D. 1
STATE OF HAWAII		H.D. 1
		PROPOSED

A BILL FOR AN ACT

RELATING TO THE HAWAIIAN HOMES COMMISSION ACT.

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

     SECTION 1.  Section 220.5 of the Hawaiian Homes Commission Act, 1920, as amended, is amended by amending subsection (d) to read as follows:

     "(d)  Any project developer agreement entered into pursuant to this section may provide for options for renewal of the term of the project developer agreement; provided that:

     (1)  The [term] initial term and any extension thereof of any one project developer agreement shall not exceed [sixty-five] ninety-nine years[;] altogether;

     (2)  Any lands disposed of under a project developer agreement shall be subject to withdrawal at any time during the term of the agreement, with reasonable notice; and

     (3)  The rental shall be reduced in proportion to the value of the portion withdrawn and the developer shall be entitled to receive from the department the proportionate value of the developer's permanent improvements so taken in the proportion that they bear to the unexpired term of the agreement, with the value of the permanent improvements determined on the basis of fair market value or depreciated value, whichever is less; or the developer, in the alternative, may remove and relocate the developer's improvements to the remainder of the lands occupied by the developer."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2008.