RELATING TO NON-AGRICULTURAL PARK LEASES.

SB2745

THE SENATE

S.B. NO.

2745

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

Relating
to NON-AGRICULTURAL PARK LEASES
.

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

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SECTION
1
.
�
Section 166E-11, Hawaii Revised Statutes, is
amended to read as follows:

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"
[
[
]�166E-11[
]
]
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Lease negotiation.
�
(a)
�
The department may negotiate and enter into
leases with any person who:

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(1)
�
Holds
a revocable permit for agricultural purposes;

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(2)
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Has
formerly held an agricultural lease or a holdover lease of public land that
expired within the last ten years and has continued to occupy the land; or

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(3)
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Is
determined by the department to have a beneficial impact on agriculture.

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(b)
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Lands eligible for lease negotiations under this section are limited to
lands that are:

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(1)
�
Zoned
and used for agricultural purposes;

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(2)
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Set
aside for agricultural uses only, by the governor through an executive order to
the department; and

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(3)
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Not
needed by any state or county agency for any other public purpose.

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(c)
�

In

negotiating and executing
a lease as authorized, the board shall:

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(1)
�
Require
the appraisal of the parcel using standards of national appraiser organizations
to determine the rental, including percentage rent;

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(2)
�
Require
the payment of a premium, computed at twenty-five per cent of the annual lease
rent, with the premium to be added to the annual lease rent for each year of
the lease equal to the number of years the lessee has occupied the land[
,
except
]
; provided
that the premium period shall not exceed four
years; and

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(3)
�
Recover
from the lessee the costs of expenditures required by the department to convert
the parcel into leasehold.

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(d)
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The department shall notify in writing those eligible for lease
negotiations under this section and shall inform the applicants of the terms,
conditions, and restrictions provided by this section.
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Any eligible person may apply for a lease by
submitting a written application to the department within thirty days from the
date of receipt of notification; provided that the department may require
documentary proof from any applicant to determine that the applicant meets
eligibility and qualification requirements for a lease.

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(e)
�

Notwithstanding any other law to the contrary, if any lessee holds a
lease having a remaining term of fewer than fifteen years, the department may
extend the term of the lease for an additional thirty years; provided that the
land covered by the lease is not greater than twenty-five acres.
"

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SECTION 2.
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Statutory material to be repealed is bracketed and stricken.
�
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:

DLNR;
Non-Agricultural Parks; Lease Negotiations

Description:

Authorizes
the Department of Land and Natural Resources to extend the term by thirty years
of any lease covering a non-agricultural park no greater than twenty-five acres
and with fewer than fifteen years remaining in the term.

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