REPORT TITLE:
Public Lands; Trust


DESCRIPTION:
Adds definition of ceded lands and Hawaiian lands to laws
relating to agriculture, agribusiness development corp., and
public lands.  Requires OHA to be a signatory to all transfers,
dispositions, sales, and conveyances of Hawaiian lands.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           462
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO PUBLIC TRUST LANDS.



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

 1      SECTION 1.  Section 163D-2, Hawaii Revised Statutes, is
 
 2 amended by adding two new definitions to be appropriately
 
 3 inserted and to read as follows:
 
 4      ""Ceded lands" means the lands ceded to the United States by
 
 5 the Republic of Hawaii under the joint resolution of annexation
 
 6 approved by Congress on July 7, 1898, and thereafter granted to
 
 7 the State of Hawaii by the Admission Act and pursuant to article
 
 8 XVI, section 7, of the state constitution, excluding therefrom
 
 9 lands defined as "available lands" by section 203 of the Hawaiian
 
10 Homes Commission Act, 1920, as amended, which are held by the
 
11 State as a trust in part for Hawaiians.
 
12      "Hawaiian lands" means and includes ceded lands, territorial
 
13 and state lands, United States fee simple lands, trust lands, and
 
14 all other lands of any description which, as of the effective
 
15 date of this Act, shall have been designated or exchanged for the
 
16 use, benefit, enjoyment, or betterment of the condition of
 
17 Hawaiians, or which shall hereafter be so designated or
 
18 exchanged."
 
19      SECTION 2.  Section 163D-16, Hawaii Revised Statutes, is
 

 
Page 2                                                     
                                     S.B. NO.           462
                                                        
                                                        

 
 1 amended by amending subsection (b) to read as follows:
 
 2      "(b)  If state lands under the control and management of
 
 3 other public agencies are required by the corporation for its
 
 4 purposes, the agency having the control and management of those
 
 5 required lands, upon request by the corporation and with the
 
 6 approval of the governor, may lease the lands to the corporation
 
 7 upon such terms and conditions as may be agreed to by the
 
 8 parties[.]; provided that any other law to the contrary
 
 9 notwithstanding, the office of Hawaiian affairs shall be a
 
10 necessary party signatory to all dispositions, demises,
 
11 transfers, conveyances, special dispositions, sales, and dealings
 
12 of all description regarding Hawaiian lands.  Nothing in this
 
13 chapter shall be deemed a waiver or avoidance of this
 
14 requirement.  Any such transactions made without compliance with
 
15 this part shall be voidable at the discretion of the office of
 
16 Hawaiian affairs."
 
17      SECTION 3.  Section 166-2, Hawaii Revised Statutes, is
 
18 amended by adding two new definitions to be appropriately
 
19 inserted and to read as follows:
 
20      ""Ceded lands" means the lands ceded to the United States by
 
21 the Republic of Hawaii under the joint resolution of annexation
 
22 approved by Congress on July 7, 1898, and thereafter granted to
 
23 the State of Hawaii by the Admission Act and pursuant to article
 

 
Page 3                                                     
                                     S.B. NO.           462
                                                        
                                                        

 
 1 XVI, section 7, of the state constitution, excluding therefrom
 
 2 lands defined as "available lands" by section 203 of the Hawaiian
 
 3 Homes Commission Act, 1920, as amended, which are held by the
 
 4 State as a trust in part for Hawaiians.
 
 5      "Hawaiian lands" means and includes ceded lands, territorial
 
 6 and state lands, United States fee simple lands, trust lands, and
 
 7 all other lands of any description which, as of the effective
 
 8 date of this Act, shall have been designated or exchanged for the
 
 9 use, benefit, enjoyment, or betterment of the conditions of
 
10 Hawaiians, or which shall hereafter be so designated or
 
11 exchanged."
 
12      SECTION 4.  Section 166-6, Hawaii Revised Statutes, is
 
13 amended by amending subsection (a) to read as follows:
 
14      "(a)  Any provision of this chapter to the contrary
 
15 notwithstanding, the board may by negotiation, drawing of lot, or
 
16 public auction, directly dispose of public lands and related
 
17 facilities set aside and designated for use as agricultural
 
18 parks, and any other lands and facilities under the jurisdiction
 
19 of the department pursuant to section 166-3 and notwithstanding
 
20 chapter 171[.]; provided that any other law notwithstanding, the
 
21 office of Hawaiian affairs shall be a necessary party signatory
 
22 to all dispositions, demises, transfers, conveyances, special
 
23 dispositions, sales, and dealings of all description regarding
 

 
Page 4                                                     
                                     S.B. NO.           462
                                                        
                                                        

 
 1 Hawaiian lands.  Nothing in this chapter shall be deemed a waiver
 
 2 or avoidance of this requirement.  Any such transactions made
 
 3 without compliance with this part shall be voidable at the
 
 4 discretion of the office of Hawaiian affairs.  Except as provided
 
 5 by subsection (c), dispositions may be by lease and shall be
 
 6 subject to the requirements set forth in rules adopted by the
 
 7 board in conformity with section 166-9, and subject also to the
 
 8 following limitations:
 
 9      (1)  The property shall be disposed of for agricultural or
 
10           aquacultural purposes only;
 
11      (2)  The lessee shall derive the major portion of the
 
12           lessee's total annual income from the lessee's
 
13           activities on the premises; provided that this
 
14           restriction shall not apply if failure to meet the
 
15           restriction results from mental or physical disability
 
16           or the loss of a spouse, or if the premises are fully
 
17           utilized in the production of crops or products for
 
18           which the disposition was granted;
 
19      (3)  The lessee shall comply with all federal and state laws
 
20           regarding environmental quality control;
 
21      (4)  The board shall determine the specific uses for which
 
22           the disposition is intended; parcel the land into
 
23           minimum size economic units sufficient for the intended
 

 
Page 5                                                     
                                     S.B. NO.           462
                                                        
                                                        

 
 1           uses; make, or require the lessee to make improvements
 
 2           as are required to achieve the intended uses; set the
 
 3           upset price or lease rent based upon an appraised
 
 4           evaluation of the property value adjustable as provided
 
 5           in rules adopted in accordance with chapter 91 to the
 
 6           specified use of the lot; set the term of the lease,
 
 7           which shall be not less than fifteen years nor more
 
 8           than fifty-five years, including any extension granted
 
 9           for mortgage lending or guarantee purposes; and
 
10           establish other terms and conditions as it may deem
 
11           necessary, including but not limited to restrictions
 
12           against alienation and provisions for withdrawal by the
 
13           board;
 
14      (5)  No lease shall be made to any person who is in arrears
 
15           in the payment of taxes, rents, or other obligations
 
16           owing the State or any county; and
 
17      (6)  Any transferee, assignee, or sublessee of an
 
18           agricultural park lease shall first qualify as an
 
19           applicant under this chapter.  For the purpose of this
 
20           paragraph, any transfer, assignment, sale, or other
 
21           disposition of any interest, excluding a security
 
22           interest, of any legal entity which holds an
 
23           agricultural park lease shall be treated as a transfer
 

 
Page 6                                                     
                                     S.B. NO.           462
                                                        
                                                        

 
 1           of the agricultural park lease and shall be subject to
 
 2           the approval of the board of agriculture upon
 
 3           reasonable terms and conditions, not inconsistent with
 
 4           this chapter or rules of the board, which the board may
 
 5           deem necessary.  No transfer shall be approved by the
 
 6           board if the disposition of the stock, or assets or
 
 7           other interest of the legal entity would result in the
 
 8           failure of the entity to qualify for an agricultural
 
 9           park lease."
 
10      SECTION 5.  Section 166-11, Hawaii Revised Statutes, is
 
11 amended by amending subsection (b) to read as follows:
 
12      "(b)  The land eligible for lease negotiations under this
 
13 section are limited to those lands:
 
14      (1)  Zoned and used for agricultural purposes;
 
15      (2)  Set aside by governor's executive order to the
 
16           department of agriculture for agricultural uses only;
 
17           and
 
18      (3)  Not needed by any state or county agency for any other
 
19           public purpose.
 
20 Any other law to the contrary notwithstanding, the office of
 
21 Hawaiian affairs shall be a necessary party signatory to all
 
22 dispositions, demises, transfers, conveyances, special
 
23 dispositions, sales, and dealings of all description regarding
 

 
Page 7                                                     
                                     S.B. NO.           462
                                                        
                                                        

 
 1 Hawaiian lands, and nothing in this chapter shall be deemed a
 
 2 waiver or avoidance of this requirement.  Any such transactions
 
 3 made without compliance with this part shall be voidable at the
 
 4 discretion of the office of Hawaiian affairs."
 
 5      SECTION 6.  Section 171-1, Hawaii Revised Statutes, is
 
 6 amended by adding two new definitions to be appropriately
 
 7 inserted and to read as follows:
 
 8      ""Ceded lands" means the lands ceded to the United States by
 
 9 the Republic of Hawaii under the joint resolution of annexation
 
10 approved by Congress on July 7, 1898, and thereafter granted to
 
11 the State of Hawaii by the Admission Act and pursuant to article
 
12 XVI, section 7, of the state constitution, excluding therefrom
 
13 lands defined as "available lands" by section 203 of the Hawaiian
 
14 Homes Commission Act, 1920, as amended, which are held by the
 
15 State as a trust in part for Hawaiians.
 
16      "Hawaiian lands" includes ceded lands, territorial, and
 
17 state lands, United States fee simple lands, trust lands of any
 
18 description which, as of the effective date of this Act, shall
 
19 have been designated or exchanged for the use, benefit,
 
20 enjoyment, or betterment of the condition of Hawaiians, or which
 
21 shall hereafter be so designated or exchanged."
 
22      SECTION 7.  Section 171-6, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
Page 8                                                     
                                     S.B. NO.           462
                                                        
                                                        

 
 1      "171-6 Powers.  Except as otherwise provided by law, the
 
 2 board of land and natural resources shall have the powers and
 
 3 functions granted to the heads of departments and the board of
 
 4 land and natural resources under chapter 26.
 
 5      In addition to the foregoing, the board may:
 
 6      (1)  Adopt a seal;
 
 7      (2)  Administer oaths;
 
 8      (3)  Prescribe forms of instruments and documents;
 
 9      (4)  Adopt rules which, upon compliance with chapter 91,
 
10           shall have the force and effect of law; provided that
 
11           any other law to the contrary notwithstanding, the
 
12           office of Hawaiian affairs shall be a necessary party
 
13           signatory to all dispositions, demises, transfers,
 
14           conveyances, special dispositions, sales, and dealings
 
15           of all description regarding Hawaiian lands.  Nothing
 
16           in this chapter shall be deemed a waiver or avoidance
 
17           of this requirement and any such transactions made
 
18           without compliance with this part shall be voidable at
 
19           the discretion of the office of Hawaiian affairs;
 
20      (5)  Set, charge, demand, and collect reasonable fees for
 
21           the preparation of documents to be issued, for the
 
22           surveying of public lands, and for the issuing of
 
23           certified copies of its government records, which fees,
 

 
Page 9                                                     
                                     S.B. NO.           462
                                                        
                                                        

 
 1           when collected, shall be deposited into the state
 
 2           general fund, unless otherwise specified in this
 
 3           chapter;
 
 4      (6)  Establish additional restrictions, requirements, or
 
 5           conditions, not inconsistent with those prescribed in
 
 6           this chapter, relating to the use of particular land
 
 7           being disposed of, the terms of sale, lease, license,
 
 8           or permit, and the qualifications of any person to
 
 9           draw, bid, or negotiate for public land;
 
10      (7)  Reduce or waive the lease rental at the beginning of
 
11           the lease on any lease of public land to be used for
 
12           any agricultural or pastoral use, or for resort,
 
13           commercial, industrial, or other business use where the
 
14           land being leased requires substantial improvements to
 
15           be placed thereon; provided that such reduction or
 
16           waiver shall not exceed two years for land to be used
 
17           for any agricultural or pastoral use, or exceed one
 
18           year for land to be used for resort, commercial,
 
19           industrial, or other business use;
 
20      (8)  Delegate to the chairperson or employees of the
 
21           department of land and natural resources, subject to
 
22           the board's control and responsibility, such powers and
 
23           duties as may be lawful or proper for the performance
 

 
Page 10                                                    
                                     S.B. NO.           462
                                                        
                                                        

 
 1           of the functions vested in the board;
 
 2      (9)  Utilize arbitration under chapter 658 to settle any
 
 3           controversy arising out of any existing or future
 
 4           lease;
 
 5     (10)  Set, charge, and collect reasonable fees in an amount
 
 6           sufficient to defray the cost of performing or
 
 7           otherwise providing for the inspection of activities
 
 8           permitted upon the issuance of a land license involving
 
 9           a commercial purpose;
 
10     (11)  Appoint masters or hearing officers to conduct public
 
11           hearings as provided by law and under such conditions
 
12           as the board by rules shall establish;
 
13     (12)  Bring such actions as may be necessary to remove or
 
14           remedy encroachments upon public lands.  Any person
 
15           causing an encroachment upon public land shall be
 
16           subject to a fine of not more than $500 a day for the
 
17           first offense and shall be liable for administrative
 
18           costs incurred by the department and for payment of
 
19           damages.  Upon the second offense and thereafter, the
 
20           violator shall (A) be fined not less than $500 nor more
 
21           than $2,000 per day; (B) if required by the board,
 
22           restore the land to its original condition if altered
 
23           and assume the costs thereof; and (C) assume such costs
 

 
Page 11                                                    
                                     S.B. NO.           462
                                                        
                                                        

 
 1           as may result from adverse effects from such
 
 2           restoration;
 
 3     (13)  Set, charge, and collect interest and a service charge
 
 4           on delinquent payments due on leases, sales, or other
 
 5           accounts.  The rate of interest shall not exceed one
 
 6           per cent a month and the service charge shall not
 
 7           exceed $50 a month for each delinquent payment;
 
 8           provided that the contract shall state the interest
 
 9           rate and the service charge and be signed by the party
 
10           to be charged;
 
11     (14)  Set, charge, and collect additional rentals for the
 
12           unauthorized use of public lands by a lessee, licensee,
 
13           grantee, or permittee who is in violation of any term
 
14           or condition of a lease, license, easement, or
 
15           revocable permit, retroactive to the date of the
 
16           occurrence of the violation.  Such amounts shall be
 
17           considered delinquent payments and shall be subject to
 
18           interest and service charges as provided in paragraph
 
19           (13);
 
20     (15)  Set, charge, and collect reasonable fines for violation
 
21           of this chapter or any rule adopted thereunder.  Any
 
22           person violating any of the provisions of this chapter
 
23           or any rule adopted thereunder, for which violation a
 

 
Page 12                                                    
                                     S.B. NO.           462
                                                        
                                                        

 
 1           penalty is not otherwise provided, shall be fined not
 
 2           more than $500 a day and shall be liable for
 
 3           administrative costs incurred by the department and for
 
 4           payment for damages;
 
 5     (16)  Issue revenue bonds, subject to the approval of the
 
 6           legislature.  All revenue bonds shall be issued
 
 7           pursuant to part III of chapter 39, except as provided
 
 8           in this chapter.  All revenue bonds shall be issued in
 
 9           the name of the department and not in the name of the
 
10           State.  The final maturity date of the revenue bonds
 
11           may be any date not exceeding thirty years from the
 
12           date of issuance;
 
13     (17)  Pledge or assign all or any part of the receipts and
 
14           revenues of the department.  The revenue bonds shall be
 
15           payable from and secured solely by the revenue derived
 
16           by the department from the industrial park or parks for
 
17           which the bonds are issued;
 
18     (18)  Reimburse the state general fund for debt service on
 
19           general obligation bonds or reimbursable general
 
20           obligation bonds issued by the State for purposes of
 
21           this chapter; and
 
22     (19)  Do any and all things necessary to carry out its
 
23           purposes and exercise the powers granted in this
 

 
Page 13                                                    
                                     S.B. NO.           462
                                                        
                                                        

 
 1           chapter."
 
 2      SECTION 8.  Statutory material to be repealed is bracketed.
 
 3 New statutory material is underscored.
 
 4      SECTION 9.  This Act shall take effect upon its approval.
 
 5 
 
 6                              INTRODUCED BY:______________________