HI SB1247

Allows lessees of public lands to relinquish their leases during the second half of the lease term by providing at least 90 days' written notice to the board.

Requires lessees to hire a licensed appraiser to determine the residual value of improvements to the land; if the board disagrees with the valuation, disputes are resolved through arbitration with costs split equally.

Permits relinquishing lessees to remain on the land without removing improvements unless specifically required by the board, except regarding pollution or contamination claims.

Mandates that relinquished land be disposed of through public auction at an upset price equal to the greater of current ground rent or appraised fair market rent for vacant land; the relinquishing lessee may bid on the new lease.

Requires that if a new lessee wins the auction, they must pay a premium equal to the residual value of improvements, which goes to the relinquishing lessee; if the relinquishing lessee is the sole bidder, new lease rent must not be less than the old lease rent.