HI HB1688

Grants lessees of public land the right to extend a 65-year lease (or lease eligible for 65-year extension) for up to 30 additional years if extension is needed to secure financing for capital improvements, beginning 10 years before lease expiration.

Requires lessee to be in good standing, demonstrate qualified financing dependent on lease extension with lender documentation, and limits aggregate lease term to no more than 85 years total.

Permits only one lease extension per lessee under this section, with no further extensions allowed; extended lease terminates at expiration and becomes subject to public auction.

Establishes that renewal rent shall be based on fair market value of land excluding improvements made by lessee; if parties cannot agree, rent determined by appraisal under existing statute.

Requires the state to reimburse lessees for depreciated value of improvements if they waive extension rights or reject extension terms; excludes lessees with tax/rent arrears or prior defaults on other public land agreements.

Takes effect July 1, 2030.