S.B. 1169 Summary

• Changes water disposition from "lease" to "license" terminology, with licenses limited to a maximum term of 30 years (compared to permits for temporary use on month-to-month basis, capped at one year)

• Allows the Board of Land and Natural Resources to dispose of water licenses through direct negotiation without public auction if fair market value is determined by independent appraisal and no more than one qualified bidder exists after publishing a request for interest statewide and in the relevant county

• Requires any new water license to include a watershed management plan jointly developed by the licensee and the Department of Land and Natural Resources that prioritizes water resource availability from forested watersheds

• Mandates the Board consult with the Commission on Water Resource Management to ensure proposed water dispositions are consistent with Chapter 174C

• Requires the Department of Land and Natural Resources to notify the Department of Hawaiian Home Lands before executing any new water license and jointly develop a water rights reservation to support current and future homestead needs