HB2927.DOC

HOUSE OF REPRESENTATIVES	H.B. NO.	2927
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

relating to lands controlled by the state.

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

PART I

SECTION 1. Section 205, Hawaiian Homes Commission Act, 1920, as amended, is amended to read as follows:

"§205. Sale or lease, limitations on. (a) Available lands shall be sold or leased only:

(1) In the manner and for the purposes set out in this title; or

(2) As may be necessary to complete any valid agreement of sale or lease in effect at the time of the passage of this Act;

except that such limitations shall not apply to the unselected portions of lands from which the department has made a selection and given notice thereof, or failed so to select and give notice within the time limit, as provided in paragraph (3) of section 204 of this title.

(b) Notwithstanding any other law to the contrary, the department may grant title to lands in fee simple to native Hawaiian lessees, subject to any conditions or qualifications as determined by the department; provided that the department shall have the right of first refusal."

SECTION 2. Section 207, Hawaiian Homes Commission Act, 1920, as amended, is amended by amending subsection (b) to read as follows:

"(b) The title to lands so leased [~~shall remain in the State.~~] may be granted to the lessee in fee simple, as determined by the department; provided that the department shall have the right of first refusal. Applications for tracts shall be made to and granted by the department, under such regulations, not in conflict with any provisions of this title, as the department may prescribe. The department shall, whenever tracts are available, enter into such a lease with any applicant who, in the opinion of the department, is qualified to perform the conditions of such lease."

SECTION 3. Section 207.5, Hawaiian Homes Commission Act, 1920, as amended, is amended to read as follows:

"[[]§207.5.[]] Housing development. The department is authorized to develop and construct single-family and multifamily units for housing native Hawaiians[.] and make those units available in fee simple for native Hawaiians; provided that the department shall have the right of first refusal. The method of disposition, including rentals, as well as the terms, conditions, covenants, and restrictions as to the use and occupancy of such single-family and multifamily units shall be prescribed by rules adopted by the department pursuant to chapter 91."

SECTION 4. The provisions of the amendments made by this part to the Hawaiian Homes Commission Act, 1920, as amended, are declared to be severable, and if any section, sentence, clause, or phrase, or the application thereof to any person or circumstances is held ineffective because there is a requirement of having the consent of the United States to take effect, then that portion only shall take effect upon the granting of consent by the United States and effectiveness of the remainder of these amendments or the application thereof shall not be affected.

PART II

SECTION 5. (a) Notwithstanding section 171-99, Hawaii Revised Statutes, the board of land and natural resources may transfer to every existing occupier or lessee of a homestead lease title to the lands in fee simple for below fair market value. Any other applicable terms and conditions enumerated in section 171-99, Hawaii Revised Statutes, shall remain in effect.

(b) If the board of land and natural resources agrees to transfer fee title for minimal or no compensation, the occupier or lessee shall be responsible for any costs related to the transfer of the title.

(c) For the purposes of this section, "homestead lease" means the same as defined in section 171-97, Hawaii Revised Statutes.

(d) The board of land and natural resources may exercise the authority provided in this section until the close of business on December 31, 2013.

(e) Regardless of whether the title has been transferred, any agreement to transfer title under the authority of this section shall be valid if made prior to December 31, 2013; provided that all terms and conditions of the agreement are met.

(f) The board of land and natural resources shall submit a report on the progress of the dispositions to the legislature no later than twenty days prior to the convening of the 2012 regular session, and shall submit a final report to the legislature no later than twenty days prior to the convening of the 2014 regular session.

PART III

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________