HI SB1251

Authorizes the Board of Land and Natural Resources to extend commercial or industrial leases on public land that will expire within a specified timeframe, provided lessees commit to making substantial improvements (costing at least 30% of the market value of existing improvements).

Requires lessees to submit development plans and specifications for board review and approval of a development agreement before any lease extension can be granted, with extension length not to exceed 40 years beyond the original lease term.

Allows the board to modify, extend, or eliminate lease restrictions upon showing of significant economic hardship caused by state disasters (seismic events, hurricanes, floods, etc.) or government takings of 10% or more of leased area, subject to rental at least equal to the preceding term.

Requires lessees to file a performance bond before construction begins and to submit expenditure receipts within board-specified timeframes; applicants must pay all costs incurred by the department for processing and analyzing extension requests.

Act takes effect December 31, 2050, and includes a repeal provision with a blank effective date for the repeal.