HOUSE OF REPRESENTATIVES

H.B. NO.

66

THIRTY-FIRST LEGISLATURE, 2021

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to public lands.

 

 

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

 


SECTION 1. The legislature finds that in 2020, state revenues declined dramatically due to the SARS-CoV-2 pandemic. Governor Ige acknowledged that state employees will face furloughs as he strives to balance the State's budget and manage a projected $1,400,000,000 shortfall over each of the next four years. It is timely, therefore, that the legislature consider revenue-generating proposals to help balance the state budget.

The purpose of this Act is to generate state revenues by authorizing the board of land and natural resources to sell Sand Island Industrial Park parcels to a lessee under a master lease who has expressed a strong interest in purchasing the fee interest in their leasehold lots.

SECTION 2. Section 171-136, Hawaii Revised Statutes, is amended to read as follows:

"171-136 Disposition of public lands within industrial park. The board shall dispose of economic units within an industrial park only by lease to eligible lessees or lessees engaged in commercial uses as provided under paragraph (1)(B). The leases shall be issued by the board in accordance with this chapter, subject to the following:

(1) Only industrial uses shall be allowed on the public lands leased; provided that:

(A) The eligible lessee may be allowed to engage in nonindustrial uses and activities ancillary and necessary to the eligible lessee's industrial use; and

(B) The board may lease public lands within the industrial park for commercial uses if the uses are necessary or desirable to serve other lessees in the industrial park or their employees;

(2) Each eligible lessee shall be subject to a development plan formulated pursuant to section 171-41 and make the improvements to the leased public lands required under the development plan; and

(3) Each eligible lessee shall pay all assessments for improvements of infrastructure or other public or common facilities within the industrial park, if the board requires the improvements or assessments as conditions of the lease.

Notwithstanding any provision to the contrary, the board is authorized to sell the fee simple interest in a parcel of industrial park land to a lessee of that parcel under an existing lease. Revenues generated by the sale of fee simple interests in industrial park lands shall be distributed in equal amounts to the state general fund and the special land and development fund."

SECTION 3. The board of land and natural resources shall submit a report on its progress and consideration of the sale of industrial park lands to lessees under existing leases, to the legislature no later than twenty days prior to the convening of the regular session of 2022.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2021.

 

INTRODUCED BY:

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Report Title:

Board of Land and Natural Resources; Sand Island Industrial Park; Sale Under Master Lease

 

Description:

Authorizes the board of land and natural resources to sell parcels of Sand Island Industrial Park to a lessee under a master lease.

 

 

 

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