THE SENATE	S.B. NO.	2745
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

A BILL FOR AN ACT

Relating to NON-AGRICULTURAL PARK LEASES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 166E-11, Hawaii Revised Statutes, is amended to read as follows:

"[[]§166E-11[]] Lease negotiation. (a) The department may negotiate and enter into leases with any person who:

(1) Holds a revocable permit for agricultural purposes;

(2) Has formerly held an agricultural lease or a holdover lease of public land that expired within the last ten years and has continued to occupy the land; or

(3) Is determined by the department to have a beneficial impact on agriculture.

(b) Lands eligible for lease negotiations under this section are limited to lands that are:

(1) Zoned and used for agricultural purposes;

(2) Set aside for agricultural uses only, by the governor through an executive order to the department; and

(3) Not needed by any state or county agency for any other public purpose.

(c) In negotiating and executing a lease as authorized, the board shall:

(1) Require the appraisal of the parcel using standards of national appraiser organizations to determine the rental, including percentage rent;

(2) Require the payment of a premium, computed at twenty-five per cent of the annual lease rent, with the premium to be added to the annual lease rent for each year of the lease equal to the number of years the lessee has occupied the land[, except]; provided that the premium period shall not exceed four years; and

(3) Recover from the lessee the costs of expenditures required by the department to convert the parcel into leasehold.

(d) The department shall notify in writing those eligible for lease negotiations under this section and shall inform the applicants of the terms, conditions, and restrictions provided by this section. Any eligible person may apply for a lease by submitting a written application to the department within thirty days from the date of receipt of notification; provided that the department may require documentary proof from any applicant to determine that the applicant meets eligibility and qualification requirements for a lease.

(e) Notwithstanding any other law to the contrary, if any lessee holds a lease having a remaining term of fewer than fifteen years, the department may extend the term of the lease for an additional thirty years; provided that the land covered by the lease is not greater than twenty-five acres."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

DLNR; Non-Agricultural Parks; Lease Negotiations

Description:

Authorizes the Department of Land and Natural Resources to extend the term by thirty years of any lease covering a non-agricultural park no greater than twenty-five acres and with fewer than fifteen years remaining in the term.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.