RELATING TO PUBLIC LAND DISPOSITIONS.

SB2758

THE SENATE

S.B. NO.

2758

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to public land dispositions
.

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

����
SECTION 1.
�
The
legislature finds that Article XI, Section 1 of the Hawaii State
Constitution provides that:
�
"For
the benefit of present and future generations, the State and its political
subdivisions shall conserve and protect Hawaii's natural beauty and all natural
resources, including land, water, air, minerals and energy sources, and shall
promote the development and utilization of these resources in a manner
consistent with their conservation and in furtherance of the self-sufficiency
of the State.
�
All public natural
resources are held in trust by the State for the benefit of the people."
�
Additionally, Article XII, Section 4 of the Hawaii
State Constitution provides that:
�
"The
lands granted to the State of Hawaii by Section 5(b) of the Admission Act and
pursuant to Article XVI, Section 7, of the State Constitution, excluding
therefrom lands defined as 'available lands' by Section 203 of the Hawaiian
Homes Commission Act, 1920, as amended, shall be held by the State as a public
trust for native Hawaiians and the general public."

����
The legislature further finds that as the
Hawaii Supreme Court recognized in the landmark
Ching v. Case
decision, the
State's duty of care as trustee of the public lands trust is especially
heightened in the context of ceded land held in trust for the benefit of native
Hawaiians and the public under Article XII, Section 4 of the Hawaii State
Constitution.
�
The ceded lands recognized
by this section are comprised of the former crown and government lands of the
Hawaiian Kingdom.

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In 1993, both the United States Congress
and the legislature recognized the Native Hawaiian community's unrelinquished
claims to the former crown and government lands of the Hawaiian Kingdom - the United
States Congress through the "Apology Resolution" (Public Law 103-150,
November 23, 1993), and the legislature through Acts 354, 359, 329, and 340,
Session Laws of Hawaii 1993.
�
With
respect to the overthrow of the Hawaiian Kingdom, the legislature found that "the
actions by the United States were illegal and immoral" and pledged "its
continued support to the native Hawaiian community by taking steps to promote
the restoration of the rights and dignity of native Hawaiians
.
"

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The legislature additionally finds that in
1997, the legislature again found that the events of history relating to the
State and native Hawaiians, including those set forth in the Apology Resolution,
continue to contribute today to a deep sense of injustice among many native
Hawaiians and others.
�
The legislature
also recognized that the lasting reconciliation so desired by all people of the
State is possible only if it fairly acknowledges the past while moving into the
State's future.
�
Additionally, the legislature
finds that "[O]ver the last few decades, the people of Hawaii through
amendments to their state constitution, the acts of their legislature, and
other means, have moved substantially toward this permanent reconciliation.
�
Foremost among these achievements have been
the creation of the office of Hawaiian affairs and the allocation by
legislative action to the office of Hawaiian affairs of substantial funds out
of a portion of the public lands trust established by section 5(f) of the
Admission Act.
�
The overriding purpose of
this Act is to continue this momentum, through further executive and
legislative action in conjunction with the people of Hawaii, toward a
comprehensive, just, and lasting resolution
.
"

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The legislature finds that, consistent with
the Hawaii State Constitution, decisions of the Hawaii Supreme Court, and
recognized principles of prudent fiduciary care and action, public lands should
be managed in the spirit of m
ā
lama
ʻ
āina
and in a manner that does not cause the permanent alienation of ceded lands
prior to resolution of native Hawaiians' unrelinquished claims to those lands.
�
The legislature believes that the bombing of
public land and other live-fire activities are inconsistent with the principle
of mālama
ʻ
āina and other
constitutional rights.
�
The legacy of
military use of Kaho
ʻ
olawe, Waikāne,
Mākua, and Pōhakuloa illustrate the tragic effects of live-fire
training and bombing on public lands, including precluding Native Hawaiians and
members of the public from freely accessing those lands for, among other
purposes, the exercise of traditional and customary rights.

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Moreover, the legislature finds that the
effects of live‑fire activities are long-lasting and have generational
effects that are often irreparable even when returned and after the cessation
of live-fire activities.
�
For example, the
Navy failed to clear all unexploded ordnance from Kaho
ʻ
olawe,
which has rendered free-ranging access unsafe to this day.
�
Additionally, a federal court determined that
in M
ā
kua Valley, the Army "failed to use good faith
efforts to develop a plan and secure funding for clearing UXO from the high
priority sites that the Army was supposed to identify" as required by a
settlement agreement limiting even hosted access to sacred and historical sites.

�
Portions of the state public lands at P
ō
hakuloa
are, according to a state circuit court, heavily contaminated on the surface
with material potentially presenting an explosive hazard which poses a
significant danger to public health and welfare.

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The legislature finds that it is time to
ensure the proper stewardship of public lands and preservation of Hawaiian
Kingdom crown and government lands by prohibiting live-fire training activities
and requiring the board of land and natural resources to consult with the
office of Hawaiian affairs prior to approving lease dispositions to other
governments, governmental agencies, public utilities, and renewable energy
producers.

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Accordingly, the purpose of this Act is to:

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(1)
�
Require
the board of land and natural resources to consult with the office of Hawaiian
affairs before approving a long-term lease of public lands to another
government, governmental agency, utility, or renewable energy developer;

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(2)
�
Prohibit
the board of land and natural resources from extending leases allowing the
live-fire training and bombing of public lands, except for a one-time extension
of up to five years to phase out existing leases allowing the live-fire
training and bombing of public lands; and

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(3)
�
Exclude
lands set aside to the department of Hawaiian home lands or lands designated
for return to the State from the one-time extension.

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SECTION
2
.
�
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:

����
(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[
;
]
after
consultation with the office of Hawaiian affairs;

����
(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[
;
]
after consultation with the
office of Hawaiian affairs;

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

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(4)
�
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)
�
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)
�
For the purposes of this section,
"renewable energy producer" means:

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(1)
�
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

����
(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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(d)
�
The board of land and natural resources shall
not approve any land disposition that allows for or facilitates the bombing of
public land or any live-fire training activity, except as authorized under
section 171-95.1.
"

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SECTION
3
.
�
Section 171-95.1, Hawaii Revised Statutes, is
amended to read as follows:

����
"[
[
]
�171-95.1[
]
]
�
Authority of board to extend leases under
certain circumstances.
�
(a)

Notwithstanding the lease restrictions established pursuant to section
171-36, the board may, without public auction, extend a public land lease that
is issued to a school or government entity pursuant to section 171‑95
beyond the sixty-five year maximum lease term.
�

The authority established pursuant to this section to extend a lease
shall not apply to [
any
]
:

����
(1)
�
Any

lease to the University of Hawaii of lands within a conservation district of
which the University of Hawaii has subleased a portion for the purpose of
constructing an astronomical observatory[
.
]
; or

����
(2)
�
Any lease that allows for
or facilitates bombing of public land or live-fire training activity, except as
provided in subsection (b).

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(b)
�

The

board may authorize a one-time extension of an
existing lease that allows for or facilitates bombing of public lands or
live-fire training activity for a period not to exceed five years for the sole purpose
of enabling the lessee to conduct further due diligence and community
consultation including as required by chapter 343; provided that:

����
(1)
�
Prior to the
extension, the lessee provides a detailed description of the type of training
activities the lessee plans to conduct to the board, the office of Hawaiian
affairs, and the public; and

����
(2)
�
The lessee
provides to the board, the office of Hawaiian affairs, and the public an annual
report on December 1 of each year of the lease extension that describes and
documents for the prior year:

���������
(A)
�
The training activities conducted on the leased lands, including
the type, frequency, and duration of such activities and the reason any bombing
or live-fire training activities could not have been conducted in another
location;

���������
(B)
�
Compliance with all conditions of the lease including
environmental, cultural, and access requirements;

���������
(C)
�
Any stewardship expenditures made;

���������
(D)
�
Any violations, incidents, or adverse impacts occurring on the
leased lands, and any corrective measures undertaken;

���������
(E)
�
Additional studies, due diligence, and community consultation
conducted to comply with chapter 343, if any; and

���������
(F)
�
The estimated timeframe for the lessee to submit the final
environmental impact statement to the accepting authority pursuant to section
343-5.

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(c)
�
The authority of the
board to authorize a one-time extension for existing leases pursuant to
subsection (b) shall expire on January 1, 2029, and shall not apply to:

����
(1)
�
Lands already
identified by the lessee for return to the State at the end of the current
lease term; or

����
(2)
�
Lands that are
defined as "available lands" by section 203 of the Hawaiian Homes
Commission Act, 1920, as amended;

provided
that the lands described in paragraphs (1) and (2) shall be immediately
returned to the State at the expiration of the current lease term, subject to
other governing law.
"

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SECTION 4.
�

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

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SECTION 5.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

BLNR;
OHA; Public Lands; Military Leases; Extension; Live-Fire Training; Bombing;
Prohibition

Description:

Requires the Board of Land and Natural Resources to
consult with the Office of Hawaiian Affairs before approving a long-term lease
of public lands to another government, governmental agency, utility, or
renewable energy developer.
�
Prohibits
the Board from extending leases allowing the live-fire training and bombing of
public lands, except for a one-time extension of up to five years to phase out
existing leases allowing the live‑fire training and bombing of public
lands.
�
Excludes lands set aside to the
Department of Hawaiian Home Lands or lands designated for return to the State
from the one-time extension.

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