RELATING TO THE DEPARTMENT OF LAND AND NATURAL RESOURCES.

SB1017

THE SENATE

S.B. NO.

1017

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the department of land and natural resources
.

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

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SECTION
1
.
�
Section 171-6, Hawaii Revised Statutes, is
amended to read as follows:

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"
�171-6
�
Powers.
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Except as
otherwise provided by law, the board of land and natural resources shall have
the powers and functions granted to the heads of departments and the board of
land and natural resources under chapter 26.

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In addition to the foregoing, the
board may:

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(1)
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Adopt a seal;

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(2)
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Administer oaths;

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(3)
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Prescribe forms of instruments and
documents;

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(4)
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Adopt rules which, upon compliance with
chapter 91, shall [
have
]
:

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(A)
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Have
the force and effect of
law;
and

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(B)
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Implement any federal regulation as
it existed on January 1, 2025, in the area of public lands of the State and
minerals thereon and all water and coastal areas of the State except commercial
harbor areas of the State, including soil conservation function, forests and
forest reserves, aquatic life, wildlife resources, state parks, historic sites,
and all activities including boating, ocean recreation, and coastal areas
programs that it deems are in the public interest;

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(5)
�
Set, charge, demand, and collect
reasonable fees for the preparation of documents to be issued, for the
surveying of public lands, and for the issuing of certified copies of its
government records, which fees, when collected, shall be deposited into the state
general fund, unless otherwise specified in this chapter;

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(6)
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Establish additional restrictions,
requirements, or conditions, consistent with those prescribed in this chapter,
relating to the use of particular land being disposed of, the terms of sale,
lease, license, or permit, and the qualifications of any person to draw, bid,
or negotiate for public land;

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(7)
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Reduce or waive the lease rental at the
beginning of the lease on any lease of public land to be used for any
agricultural or pastoral use, or for resort, commercial, industrial, or other
business use where the land being leased requires substantial improvements to
be placed thereon; provided that the reduction or waiver shall not exceed two
years for land to be used for any agricultural or pastoral use, or exceed one
year for land to be used for resort, commercial, industrial, or other business
use.
�
When a lease for resort,
commercial, industrial, or other business or residential purposes requires a
lessee to demolish existing improvements or provide basic infrastructure,
including drainage, sewer, water, electricity, and other utilities, before the
lessee can make productive use of the land, the board may approve a reduction
or waiver of lease rental for a period of up to twenty years; provided that the
aggregate amount of the reduced or waived lease rental shall not exceed the
amount of the lessee's total expenditures for demolition or provision of the
infrastructure;

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(8)
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Delegate to the chairperson or
employees of the department of land and natural resources, subject to the board's
control and responsibility, powers and duties as may be lawful or proper for
the performance of the functions vested in the board;

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(9)
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Use arbitration under chapter 658A to
settle any controversy arising out of any existing or future lease;

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(10)
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Set, charge, and collect reasonable
fees in an amount sufficient to defray the cost of performing or otherwise
providing for the inspection of activities permitted upon the issuance of a
land license involving a commercial purpose;

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(11)
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Appoint hearing officers to conduct
public hearings as provided by law and under conditions as the board by rules
shall establish;

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(12)
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Bring actions as may be necessary to
remove or remedy encroachments upon public lands.
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Any person causing an encroachment upon
public land shall:

���������
(A)
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Be fined no more than $1,000 a day for
the first offense;

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(B)
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Be fined no less than $1,000 nor more
than $4,000 per day upon the second offense and thereafter;

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(C)
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If required by the board, restore the
land to its original condition if altered and assume the costs thereof;

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(D)
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Assume costs as may result from adverse
effects from restoration; and

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(E)
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Be liable for administrative costs
incurred by the department and for payment of damages;

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(13)
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Set, charge, and collect interest and a
service charge on delinquent payments due on leases, sales, or other
accounts.
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The rate of interest shall not
exceed one per cent a month and the service charge shall not exceed $50 a month
for each delinquent payment; provided that the contract shall state the
interest rate and the service charge and be signed by the party to be charged;

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(14)
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Set, charge, and collect additional
rentals for the unauthorized use of public lands by a lessee, licensee,
grantee, or permittee who is in violation of any term or condition of a lease,
license, easement, or revocable permit, retroactive to the date of the
occurrence of the violation.
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The amounts
shall be considered delinquent payments and shall be subject to interest and
service charges as provided in paragraph (13);

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(15)
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Set, charge, and collect reasonable
fines for violation of this chapter or any rule adopted thereunder.
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Any person engaging in any prohibited use of
public lands or conducting any prohibited activity on public lands, or
violating any of the other provisions of this chapter or any rule adopted
thereunder, for which violation a penalty is not otherwise provided, shall be:

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(A)
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Fined no more than $5,000 per violation
for a first violation or a violation beyond five years of the last violation;
provided that, after written or verbal notification from the department, an
additional $1,000 per day per violation may be assessed for each day in which
the violation persists;

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(B)
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Fined no more than $10,000 per
violation for a second violation within five years of the last violation;
provided that, after written or verbal notification from the department, an
additional $2,000 per day per violation may be assessed for each day in which
the violation persists;

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(C)
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Fined no more than $20,000 per
violation for a third or subsequent violation within five years of the last
violation; provided that, after written or verbal notification from the
department, an additional $4,000 per day per violation may be assessed for each
day in which the violation persists; and

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(D)
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Liable for administrative costs and
expenses incurred by the department and for payment for damages, including but
not limited to natural resource damages.

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In
addition to the fines, administrative costs, and damages provided for
hereinabove, for damage to or theft of natural resources, the board may also
set, charge, and collect a fine that, in its discretion, is appropriate
considering the value of the natural resource that is damaged or the subject of
the theft.
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In arriving at an appropriate
fine, the board may consider the market value of the natural resource damaged
or taken and any other factor it deems appropriate, such as the loss of the
natural resource to its natural habitat and environment and the cost of
restoration or replacement.
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The remedies
provided for in this paragraph are cumulative and in addition to any other
remedies allowed by law.

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No
person shall be sanctioned pursuant to this section for the exercise of native
Hawaiian gathering rights and traditional cultural practices as authorized by
law or as permitted by the department pursuant to article XII, section 7, of
the Hawaii state constitution;

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(16)
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Issue revenue bonds, subject to the
approval of the legislature.
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All revenue
bonds shall be issued pursuant to part III of chapter 39, except as provided in
this chapter.
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All revenue bonds shall be
issued in the name of the department and not in the name of the State.
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The final maturity date of the revenue bonds
may be any date not exceeding thirty years from the date of issuance;

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(17)
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Pledge or assign all or any part of the
receipts and revenues of the department.
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The revenue bonds shall be payable from and secured solely by the
revenue derived by the department from the industrial park or parks for which
the bonds are issued;

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(18)
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Reimburse the state general fund for
debt service on general obligation bonds or reimbursable general obligation
bonds issued by the State for purposes of this chapter;

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(19)
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Notwithstanding part II of chapter 205A
to the contrary, plan, design, construct, operate, and maintain any lands or
facilities under the jurisdiction of the division of boating and ocean
recreation of the department without the need to obtain a special management
area minor permit or special management area use permit; and

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(20)
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Do any and all things necessary to
carry out its purposes and exercise the powers granted in this chapter."

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SECTION 2.
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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 3.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

BLNR;
Rules; Federal Regulations; Public Lands

Description:

Authorizes
the Board of Land and Natural Resources to adopt by rule, any federal rule or
regulation relating to the public lands of the State as it existed on 1/1/2025
that it deems are in the public interest.

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