HI SB2967

Grants lessees of public land under 65-year leases the right of first refusal to renew or extend their lease before the land is offered at public auction, notwithstanding existing section 171-14.

Requires renewed or extended leases to provide rent at fair market value of the land, determined without considering the value of improvements made by the lessee, with disputes resolved through appraisal under section 171-17(b).

Requires the board to either reimburse the lessee for depreciated improvement value or require restoration of the land to its previous state if the lessee waives the right of first refusal or parties fail to reach renewal agreement.

Excludes lessees from the right of first refusal if they are in arrears on taxes, rents, or other state or county obligations, or have had a previous public land sale, lease, license, permit, or easement canceled for failure to meet terms within the preceding five years.

Effective upon approval; does not affect rights, duties, penalties, or proceedings that matured or began before the effective date.