REPORT TITLE:
State Leases; Farmers


DESCRIPTION:
Provides that at the time of expiration of an agricultural
lease, the current lessee shall have a right of first refusal to
lease the property.  Credits the appraised value of all
infrastructure installed by the current lessee, which is directly
related to an agriculture operation, excluding residences, toward
the price the current lessee must match in exercising the
lessee's right of first refusal.  Allows the department of land
and natural resources to adopt rules to carry out the provisions
in the bill.  Specifies that within six months from the bill's
effective date, the department of land and natural resources
shall notify all agricultural lessees of the terms, conditions,
and restrictions under the bill.  (HB1998 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1998
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO STATE LEASES.



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

 1      SECTION 1.  Chapter 171, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "�171-     Agricultural leases.  (a) Notwithstanding any
 
 5 other provisions of this chapter, at the time of expiration of an
 
 6 agricultural lease, the current lessee shall have a right of
 
 7 first refusal to lease the property.  The right shall lapse
 
 8 unless the department is notified in writing of the exercise of
 
 9 the right within       days after the auction.  The appraised
 
10 value of all infrastructure installed by the current lessee,
 
11 which is directly related to an agriculture operation, excluding
 
12 residences, shall be credited toward the price the current lessee
 
13 must match in exercising the lessee's right of first refusal.
 
14      (b)  The department may adopt rules, pursuant to chapter 91,
 
15 relating to appraisals, lease terms and duration, cost recovery,
 
16 and other issues necessary to carry out this section."
 
17      SECTION 2.  Within six months from the effective date of
 
18 this Act, the department of land and natural resources shall
 

 
Page 2                                                     1998
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 notify all agricultural lessees of the terms, conditions, and
 
 2 restrictions under this Act.
 
 3      SECTION 3.  New statutory material is underscored.
 
 4      SECTION 4.  This Act shall take effect upon its approval.