HI HB1326

Extends the maximum number of consecutive one-year holdover permits for water rights from three to six years, allowing applicants more time to complete lease applications while maintaining existing water use.

Requires holdover authorizations exceeding two million gallons of water per day to be issued with a final written decision that includes conditions minimizing impacts to public trust purposes and limits water use to demonstrated actual, reasonable beneficial needs.

Mandates that holdover permits continue without board action while contested case proceedings are pending, protecting permit holders during legal challenges.

Requires the board of land and natural resources to hold a public hearing and adopt administrative rules on water rights disposition by lease at public auction and water valuation, and to retain a certified appraiser knowledgeable in real property and water law before approving any holdovers after January 1, 2020.

Exempts instream, in-watershed water use for wetland kalo cultivation done in a traditional manner from water rights disposition statutes and requires a report to the legislature by 2020 on the effectiveness of water rights provisions.