HOUSE OF REPRESENTATIVES

H.B. NO.

331

TWENTY-SIXTH LEGISLATURE, 2011

H.D. 2

STATE OF HAWAII

S.D. 2

 

C.D. 1

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO PUBLIC LANDS.

 

 

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

 


     SECTION 1.  Section 171-36, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The board, from time to time, upon the issuance or during the term of any intensive agricultural, aquaculture, commercial, mariculture, special livestock, pasture, or industrial lease, may:

     (1)  Modify or eliminate any of the restrictions specified in subsection (a);

     (2)  Extend or modify the fixed rental period of the lease; provided that the aggregate of the initial term and any extension granted shall not exceed sixty-five years; or

     (3)  Extend the term of the lease,

to the extent necessary to qualify the lease for mortgage lending or guaranty purposes with any federal mortgage lending agency, to qualify the lessee for any state or private lending institution loan, private loan guaranteed by the State, or any loan in which the State and any private lender participates, or to amortize the cost of substantial improvements to the demised premises that are paid for by the lessee without institutional financing, such extension being based on the economic life of the improvements as determined by the board or an independent appraiser; provided that the approval of any extension shall be subject to the following:

     (1)  The demised premises have been used substantially for the purpose for which they were originally leased;

     (2)  The aggregate of the initial term and any extension granted shall not be for more than [fifty-five] sixty-five years;

     (3)  In the event of a reopening, the rental for any ensuing period shall be the fair market rental at the time of reopening;

     (4)  Any federal or private lending institution shall be qualified to do business in the State;

     (5)  Proceeds of any mortgage or loan shall be used solely for the operations or improvements on the demised premises;

     (6)  Where improvements are financed by the lessee, the lessee shall submit receipts of expenditures within a time period specified by the board, otherwise the lease extension shall be canceled; and

     (7)  The rules of the board, setting forth any additional terms and conditions, which shall ensure and promote the purposes of the demised lands."

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

     SECTION 3.  This Act shall take effect upon its approval.



 

Report Title:

Public Lands; Leases; Wildlife; Public Land Development Corporation

 

Description:

Allows the Board of Land and Natural Resources to extend the fixed rental period or term of certain leases; provided that the aggregate of the initial term and any extension granted does not exceed sixty-five years. (HB331 CD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.