RELATING TO THE DEPARTMENT OF LAND AND NATURAL RESOURCES.

SB2976

THE SENATE

S.B. NO.

2976

THIRTY-THIRD LEGISLATURE, 2026

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:

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

����
"
�171-6
�
Powers.
�
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.

����
In
addition to the foregoing, the board may:

����
(1)
�
Adopt
a seal;

����
(2)
�
Administer
oaths;

����
(3)
�
Prescribe
forms of instruments and documents;

����
(4)
�
Adopt
rules [
which, upon compliance with
]
pursuant to
chapter 91[
,
]

that
shall [
have
]
:

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

���������
(B)
�
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;

����
(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;

����
(6)
�
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;

����
(7)
�
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;

����
(8)
�
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;

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

���
(10)
�
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;

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

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

���������
(A)
�
Be fined [
no
]
not
more
than $1,000 a day for the first offense;

���������
(B)
�
Be fined [
no
]
not
less
than $1,000 nor more than $4,000 per day upon the second offense and
thereafter;

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

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

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

���
(13)
�
Set, charge, and collect interest and a
service charge on delinquent payments due on leases, sales, or other
accounts.
�
The rate of interest shall not
exceed one per cent a month and the service charge shall not exceed $50 [
a
]

per
month for each delinquent payment; provided that the contract shall
state the interest rate and the service charge and
shall
be signed by
the party to be charged;

���
(14)
�
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.
�
The amounts
shall be considered delinquent payments and shall be subject to interest and
service charges as provided in paragraph (13);

���
(15)
�
Set, charge, and collect reasonable
fines for violation of this chapter or any rule adopted thereunder.
�
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:

���������
(A)
�
Fined [
no
]
not
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;

���������
(B)
�
Fined [
no
]
not
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;

���������
(C)
�
Fined [
no
]
not
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

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

���������
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
for damage to or theft of natural
resources
that, in its discretion, is appropriate considering the value of
the natural resource that is damaged or the subject of the theft.
�
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.
�
The remedies provided for
in this paragraph are cumulative and in addition to any other remedies allowed
by law.

���������
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;
]
State Constitution;

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

���
(17)
�
Pledge or assign all or any part of the
receipts and revenues of the department.
�

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;

���
(18)
�
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;

���
(19)
�
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

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

����
SECTION 2.
�

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

����
SECTION 3.
�

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 regulation
relating to the public lands of the State as it existed on 1/1/2025 that it
deems is 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.