HI HB2501

Allows annual holdovers for water rights lease applications that seek to continue previously authorized dispositions, up to three consecutive one-year holdovers or until the pending application is finally resolved, whichever occurs sooner, with a maximum three-year total holdover period.

Requires any holdover to be consistent with the public trust doctrine and maintains existing provisions requiring legislative disapproval by two-thirds vote of either chamber or majority vote of both chambers.

Permits leasing of water used for nonconsumptive purposes (returned to the same water source with no significant effect on volume, quality, or biota) with prior governor approval and legislative authorization by concurrent resolution.

Requires the Department of Land and Natural Resources to submit annual reports to the legislature before each regular session from 2017 through 2020 detailing the status and actions on water rights disposition applications.

The Act takes effect upon approval and applies to applications pending or filed before June 30, 2019; the amended statute will revert to its prior form on June 30, 2019, though holdovers already applied for may continue beyond that date.