RELATING TO PUBLIC LANDS.

HB2406

HOUSE OF REPRESENTATIVES

H.B. NO.

2406

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to public lands
.

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

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SECTION
1
.
�
Section 171-95, Hawaii Revised Statutes, is
amended to read as follows:

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"
�171-95
�

Disposition to governments, governmental agencies, public utilities, and
renewable energy producers.
�
(a)
�
Notwithstanding any limitations to the
contrary, the board of land and natural resources may, without public auction:

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(1)
�
Sell public lands at such price and on such
other terms and conditions as the board may deem proper to governments,
including the United States, city and county, counties, other governmental
agencies authorized to hold lands in fee simple and public utilities;

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(2)
�
Lease to the governments, agencies, public
utilities, and renewable energy producers public lands for terms up to, but not
in excess of, sixty-five years at such rental and on such other terms and
conditions as the board may determine;

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(3)
�
Grant licenses and easements to the
governments, agencies, public utilities, and renewable energy producers on such
terms and conditions as the board may determine for road, pipeline, utility,
communication cable, and other rights-of-way;

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(4)
�
Exchange public lands with the governments and
agencies;

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(5)
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Execute quitclaim deeds to the governments and
agencies, with or without consideration, releasing any claim to the property
involved made upon disputed legal or equitable grounds, whenever the board in
its discretion deems it beneficial to the State; and

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(6)
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Waive or modify building and other
requirements and conditions contained in deeds, patents, sales agreements, or
leases held by the governments and agencies whenever such waiver or
modification is beneficial to the State.

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(b)
�
In any disposition to public utilities under
this section:

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(1)
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The sale price or lease rental shall be no
less than the value determined in accordance with section 171‑17(b);
provided that such sale price or lease rental may be on a nominal basis, if the
board finds that such easement is required in connection with a government
project;

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(2)
�
The board shall provide that in case the land
ceases to be used at any future time for the use for which the disposition was
made, the board shall have the right to repurchase the land at the original
sale price or fair market value, whichever is lower, and to purchase
improvements thereon at the depreciated value or fair market value, whichever
is lower;

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(3)
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Disposition shall not be made to any public
utility if the utility has suitable lands of its own;

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(4)
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The disposition to public utilities shall be
subject to disapproval by the legislature by two-thirds vote of either the
senate or the house of representatives or by majority vote of both, in any
regular or special session next following the date of the disposition; and

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(5)
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For the purposes of this section, the
definition of "public utility" as defined in section 269-1 is hereby
incorporated herein by reference.

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(c)
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Any disposition of more than one thousand
acres of public lands to governments under subsection (a) shall be subject to
approval by a majority vote of both houses of the legislature in any regular or
special session following the date of the board of land and natural resources'
approval of the disposition.
�
The
government party to the disposition shall submit for introduction to the
legislature a resolution for review of action on any disposition to be
consummated by the board with the following information:

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(1)
�
The
specific location and size in square feet or in other precise measure of the
parcels of land subject to the disposition;

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(2)
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The
value of the lands to be subject to the disposition;

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(3)
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The
name or names of the appraiser or appraisers;

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(4)
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The
date of the appraisal valuation;

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(5)
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The
purpose for which the lands are subject to the disposition;

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(6)
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A
detailed summary of any development plans for the land subject to the
disposition; and

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(7)
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A
statement of whether the land is, or is not, land that was classed as
government or crown lands before August 15, 1895, or was acquired by the State
in exchange for lands before August 15, 1895, and a detailed explanation of how
the government made the determination.

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A copy of the draft resolution shall
also be submitted to the office of Hawaiian affairs at least three months
before the convening of a regular or special session of the legislature to
allow the office to determine whether the land was classed as government or
crown lands before August 15, 1895, or was acquired by the State in exchange
for government or crown lands before August 15, 1895.

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[
(c)
]

(d)
�
For the purposes of this
section, "renewable energy producer" means:

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(1)
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Any producer or developer of renewable energy,
as defined in section 269-91;

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(2)
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Any grower or producer of plant or
animal materials used primarily for the production of biofuels or other fuels;
provided that nothing herein is intended to prevent the waste product or
byproduct of the plant or animal material grown or produced for the production
of biofuel, biogas, hydrogen, or other fuels from being used for other useful
purposes; or

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(3)
�
Any producer of renewable energy, as defined in section
269-91, that uses the renewable energy to provide district heating or cooling
services
;

provided that nothing in this definition shall be
construed to allow wheeling of electricity over electric public utility lines
or infrastructure that is not otherwise authorized by law or rule or order of
the public utilities commission
."

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SECTION 2.
�

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

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SECTION 3.
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Statutory material to be repealed is bracketed and stricken.
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New statutory material is underscored.

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SECTION 4.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

BLNR;
OHA; Disposition of Public Lands; Legislative Approval; Requirement

Description:

Requires
any disposition of more than one thousand acres of public lands to governments by
the Board of Land and Natural Resources to be subject to approval by a majority
vote of both houses of the Legislature.
�

Requires the government seeking the disposition of the public land to
submit for introduction to the Legislature a resolution containing certain
information.
�
Requires a copy of the
draft resolution to be sent to the Office of Hawaiian Affairs.

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