HI SB707

Grants lessees of public land managed by the department the right to relinquish their lease at any time during the lease period.

Requires lessees to obtain an appraisal from a licensed real estate appraiser to determine the depreciated or residual value of improvements before relinquishing; allows for binding arbitration if the board disputes the valuation, with the lessee paying all costs except half the third appraiser's fee.

Upon relinquishment, the board must dispose of the land by public auction with an upset price equal to the greater of current ground rent or appraised fair market rent for vacant, unimproved land; the relinquishing lessee may bid on the new lease.

New lease terms must include a minimum 40-year period, and if awarded to another party, the new lessee must pay a premium equal to the appraised value of improvements, which goes to the relinquishing lessee.

Does not apply to lessees in arrears on taxes or rent, those with canceled leases within the previous five years, or leases subject to cancellation for non-compliance; takes effect July 1, 2030.