THE SENATE	S.B. NO.	2596
THIRTY-THIRD LEGISLATURE, 2026		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO GOVERNMENT LEASES.

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

SECTION 1. Chapter 171, Hawaii Revised Statutes, is amended by adding a new section to subpart B of part II to be appropriately designated and to read as follows:

"§171- Intrastate government leases. (a) Except as provided in subsection (b), any real property leased by a state entity to another state entity shall be at a cost of not more than $1 per year; provided that:

(1) The lessee's use of the real property shall align with the lessor's mission; and

(2) The lessee shall not sublease the real property.

(b) A lease shall be exempt from this section if the real property subject to the lease is being used by a department to meet a core responsibility of that department, as expressly provided in sections 26-5 through 26‑21.

(c) For purposes of this section, "state entity" has the same meaning as defined in section 27-46."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

Report Title:

Land Use; State Government; Leases

Description:

Requires that real property leases between state government entities cost no more than $1 per year. Exempts leases from this requirement if the real property subject to the lease is being used by a department to meet a core responsibility of that department. (SD1)

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