HI HB2417

Department of Land and Natural Resources must review the final report from House Resolution No. 164 (2021) investigative committee to conduct a policy analysis on the State's land lease policy, including expert analysis from the University of Hawaii's Ka Huli Ao center and comparison of best practices in comparable states.

Policy analysis must examine conditions for lease extensions, costs and revenue of space leases versus ground leases, and statutory improvements for the State to obtain compensation from lessees who fail to maintain parcels or complete promised improvements.

Department must develop proposed legislation to standardize lease extension provisions in Hawaii Revised Statutes Chapter 171, including requiring all lease extensions use current lease forms and practices, allowing rent premiums on extended leases, and requiring lessees to pay for appraisal costs.

Proposed legislation must explore using a request for interest process prior to all lease dispositions and allow the department to negotiate direct leases for five to ten years with basic appraisal for properties showing no public auction interest.

Appropriates funds for fiscal year 2022-2023 to conduct the policy analysis and implement recommendations; takes effect July 1, 2050.