§171-44  Lease for recreation-residence use.  (a)  Notwithstanding any limitations to the contrary, the board of land and natural resources shall lease, by public lottery and without recourse to public auction, lands within a state park or forest reserve and other lands set aside under executive orders, for recreation-residence use for a period not to exceed twenty years on terms and conditions as may be prescribed by the board; provided that:

     (1)  A lessee determined to be in good standing by the board at the expiration of the lessee's lease may directly negotiate with the board to renew the lease for an additional term not to exceed twenty years;

     (2)  The annual rent for any renewed lease shall be adjusted by the board to reflect changes to the implicit price deflator for the gross domestic product as published by the Bureau of Economic Analysis, applied on a five-year rolling average; and

     (3)  A lessee shall notify the board in writing no less than sixty days before the termination of the lease if the lessee intends to renew the lease.

     (b)  The board of land and natural resources shall enforce all provisions of recreation-residence use lease agreements and shall establish a schedule of penalties and fines for any breach of the provisions of a recreation-residence use lease agreement unless penalties and fines are specified in the lease agreement.

     (c)  Recreation-residence use leases offered by public lottery shall be:

     (1)  Offered at fair market value, to be determined by appraisal pursuant to section 171-17;

     (2)  Limited to one person per recreation-residence; provided that if two or more lessees intend to jointly reside in the same recreation-residence, only one lessee may enter the public lottery; and

     (3)  For vacant recreation-residences, offered within twelve months of the recreation-residence becoming vacant.

     (d)  The board shall limit participation in the public lottery of recreation-residence use leases to residents of the same county in which the land to be leased is located; provided that limiting participation in the public lottery to residents of the county will be for the benefit of the residents of the county; ensure premises leased will be properly maintained by the lessee; and preserve the environmental, cultural, and scenic values of the leased premises.  If the number of county residents participating in the public lottery is fewer than the number of leases available, the board shall open the public lottery to all residents of the State, followed by nonresidents.

     (e)  Any transfer or assignment of a recreation-residence use lease shall be subject to a fee of $1,200, to be paid to the board.  The board shall annually increase or decrease the fee to reflect changes to the implicit price deflator for the gross domestic product as published by the Bureau of Economic Analysis, applied on a five-year rolling average. [L 1965, c 239, §38; Supp, §103A-42.8; HRS §171-44; am L 2008, c 223, §4; am L 2025, c 225, §4]

Revision Note

  Subsection (b) is codified to this section pursuant to §23G-15.