SB638 HD1.DOC

PART I

SECTION 1. In 1965, the State condemned the ahupua‘a o Kahana for use as a state park, making it the only landowner in the State of Hawai‘i, outside of the Robinson family on Ni‘ihau, to own an intact ahupua‘a. An ahupua‘a, a triangular slice of land running from the mountains to the ocean, was the major land division used by pre-contact Hawaiians, as it included all of the elements necessary for their existence: the uplands, the lowlands, the shore, and the ocean.

While the families living in Kahana at the time of the condemnation were of varied ethnic backgrounds, many of them were native Hawaiian, and the people of Kahana in general lived a simple, subsistence lifestyle in harmony with native Hawaiian values and traditions. The people of Kahana lobbied the legislature after the condemnation to allow them to stay in Kahana and preserve this rural native Hawaiian-influenced lifestyle. In 1970, a governor's task force proposed the concept of a living park that would allow the families to stay and in some way participate in the park. The governor recommended the concept to the department of land and natural resources. The residents were allowed to stay on the land under revocable leases.

The State determined that as a condition of their lease each Kahana family would contribute twenty-five hours of interpretive services per month to the park, to preserve, restore, and share the history and rural lifestyle of the ahupua‘a with the public.

Act 5, Session Laws of Hawaii 1987, authorized the department of land and natural resources to issue long-term residential leases to persons who had lived continuously in Kahana valley or had permits allowing them to reside on certain parcels of land within Kahana valley. As a condition of holding a lease, these qualified persons agreed to participate in interpretive programs in Kahana valley state park.

The purpose of this part is to:

(1) Establish a two-year moratorium on evictions of persons who at the time of the enactment of this Act, reside in Kahana valley state park, have participated in interpretive programs for Kahana valley state park, and have continuously lived there since before 1987 or hold or have held a long-term lease or permit to reside there;

(2) Authorize the board of land and natural resources to negotiate and enter into long-term residential leases within state parks with qualified persons; and

(3) Establish the planning council to assist in the development and implementation of a master plan for Kahana valley state park.

SECTION 2. (a) Notwithstanding any other law to the contrary, including chapter 171, Hawaii Revised Statutes, there is established a two-year moratorium from the effective date of this Act on the eviction of persons who at the time of the enactment of this Act:

(1) Reside in Kahana valley state park;

(2) Have participated in interpretive programs for Kahana valley state park; and

(3) Have:

(A) Continuously lived there since before 1987; or

(B) Held a long-term lease or permit to reside there.

(b) For a two-year period from the effective date of this Act, the board of land and natural resources is authorized to enter into negotiations and execute long-term leases with qualified applicants for residential sites:

(1) Within any state park with acreage greater than five thousand acres but not more than six thousand acres;

(2) For long-term residential leases with a term not exceeding fifty years; and

(3) With persons who:

(A) Have participated in interpretive programs within the state park; and

(B) (i) Have continuously resided in the state park since 1987; or

(ii) Hold or have held a long-term lease or permit to reside within the state park.

SECTION 3. (a) The department of land and natural resources, together with the Kahana planning council, shall develop a Kahana living park master plan and submit a report on the Kahana living park master plan, including any recommended legislation, to the legislature no later than twenty days prior to the convening of the 2011 regular session. The Kahana living park master plan shall include:

(1) A comprehensive management plan for a culturally sensitive and ahupua‘a-based entity;

(2) A list of priorities and guidelines to promote cooperation between government agencies and residents of Kahana valley state park with respect to managing the ahupua‘a, its people, and its resources; and

(3) Any proposed legislation necessary to implement the Kahana living park master plan.

(b) There is established within the department of land and natural resources for administrative purposes the Kahana planning council consisting of seven members:

(1) One member shall be the president of the Kahana Valley Association or the president's designee;

(2) Two members shall be lease holders or residents in Kahana valley state park, designated by the president of the Kahana Valley Association;

(3) One member shall be a faculty member from the University of Hawai‘i at Manoa, department of urban and regional planning, to be designated by the faculty chairperson of the department;

(4) One member shall be a member of the senate, to be designated by the senate president;

(5) One member shall be a member of the house of representatives, to be designated by the speaker of the house of representatives; and

(6) One member shall be the chairperson of the board of land and natural resources or the chairperson's designee.

(1) Complete the Kahana living park master plan as required by subsection (a);

(2) Provide input for the Kahana living park master plan to advise and assist residents in the management of the Kahana valley state park;

(3) Determine the location for long-term residents' homes;

(4) Establish criteria for eligibility for future issuance of long-term leases, including:

(A) Participation in interpretive programs;

(B) Lineal descendents of Kahana valley families prior to 1965;

(D) Whether, and under what circumstances, leases may be assigned, or new long-term leases issued, to third parties;

(5) Increase community participation and input into the Kahana living park master plan for the enhancement of community education and cultural awareness of the Kahana valley state park; and

(6) Work with the community to implement the Kahana living park master plan.

(d) The members of the Kahana planning council shall select a chairperson from among the planning council members and shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

PART II

SECTION 4. The Hawaiian Homes Commission Act, 1920, is amended by adding a new section to be appropriately designated and to read as follows:

"§ . Commercial projects. Notwithstanding the provisions of sections 171-36(a)(2) and 171-95(a)(2), the department may negotiate leases for commercial projects that have been or shall be developed pursuant to a land disposition authorized under section 204(a)(2) with a qualified developer, or a project developer agreement authorized under section 220.5 with a qualified developer, whether the project developer agreement is existing or entered into pursuant to this section. As part of this process, the department of Hawaiian home lands may enter into consultation with the beneficiaries of the trust. The initial term of the lease of commercial property and any extensions thereof may be for a period in excess of sixty-five years; provided that the aggregate of the initial term and any extensions of the term shall in no event exceed ninety-nine years. Upon expiration of the negotiated term of the lease, the lease may be offered for public auction as provided in this title; provided that the previous lease holder shall be offered the right of first refusal in accordance with the terms of the lease; and provided further that the lease holder shall agree to match the highest bid offered at the public auction.

As used in this section, "consultation with the beneficiaries of the trust" means a process, as established by the department, of engaging those beneficiaries residing within the geographical area of the property subject to the lease in a process that provides for the timely dissemination of information and the gathering of input and allows for a reasonable time and reasonable access to relevant information for evaluation and consideration."

SECTION 5. 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 sections, 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 the effectiveness of the remainder of these amendments or the application thereof shall not be affected.

PART III

SECTION 6. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 7. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 8. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2009.

THE SENATE	S.B. NO.	638
TWENTY-FIFTH LEGISLATURE, 2009		S.D. 2
STATE OF HAWAII		H.D. 1