Bill Text: HI HB2567 | 2018 | Regular Session | Introduced
Bill Title: Relating To Proprietary Interest Protection Agreements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-29 - Referred to LAB/WAL, JUD, FIN, referral sheet 9 [HB2567 Detail]
Download: Hawaii-2018-HB2567-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2567 |
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TWENTY-NINTH LEGISLATURE, 2018 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
Relating to Proprietary Interest Protection Agreements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that municipalities and states have used proprietary interest protection agreements to protect the public's interest in public contracts and leases that are offered to private entities. Proprietary interest protection agreements, also known as labor peace agreements, are used to avoid future labor disputes where the public has a financial stake in the private activity. A proprietary interest protection agreement typically consists of an agreement between management and labor to not take economic action against each other, such as management disallowing union drives or workers picketing or striking.
The legislature further finds that the State enters into agreements with private businesses and individuals to lease numerous land parcels across the State. As a result of leasing the land, the State has a financial and proprietary interest in any business activities that occur on the land. A labor dispute with one of the lessees could result in interrupted services and threaten the business's financial health and viability, which could in turn affect the lessee's ability to remit rent to the State. While the terms of the land lease place certain conditions on lessees, none protect against a labor-related disruption in a lessee's business activity.
The purpose of this Act is to require lessees of public land to enter into proprietary interest protection agreements when requested.
SECTION 2. Section 171-36, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Except as otherwise provided, the following restrictions shall apply to all leases:
(1) Options for renewal of terms are prohibited;
(2) No lease shall be for a longer term than sixty-five years, except in the case of a residential leasehold which may provide for an initial term of fifty-five years with the privilege of extension to meet the requirements of the Federal Housing Administration, Federal National Mortgage Association, Federal Land Bank of Berkeley, Federal Intermediate Credit Bank of Berkeley, Berkeley Bank for Cooperatives, or Department of Veterans Affairs requirements; provided that the aggregate of the initial term and extension shall in no event exceed seventy-five years;
(3) No lease shall be made for any land under a lease which has more than two years to run;
(4) No lease shall be made to any person who is in arrears in the payment of taxes, rents, or other obligations owing the State or any county;
(5) No lease shall be transferable or assignable, except by devise, bequest, or intestate succession; provided that with the approval of the board of land and natural resources, the assignment and transfer of a lease or unit thereof may be made in accordance with current industry standards, as determined by the board; provided further that prior to the approval of any assignment of lease, the board shall have the right to review and approve the consideration to be paid by the assignee and may condition its consent to the assignment of the lease on payment by the lessee of a premium based on the amount by which the consideration for the assignment, whether by cash, credit, or otherwise, exceeds the depreciated cost of improvements and trade fixtures being transferred to the assignee; provided further that with respect to state agricultural leases, in the event of foreclosure or sale, the premium, if any, shall be assessed only after the encumbrances of record and any other advances made by the holder of a security interest are paid;
(6) The lessee shall not sublet the whole or any part of the demised premises except with the approval of the board; provided that prior to the approval, the board shall have the right to review and approve the rent to be charged to the sublessee; provided further that in the case where the lessee is required to pay rent based on a percentage of its gross receipts, the receipts of the sublessee shall be included as part of the lessee's gross receipts; provided further that the board shall have the right to review and, if necessary, revise the rent of the demised premises based upon the rental rate charged to the sublessee including the percentage rent, if applicable, and provided that the rent may not be revised downward;
(7) The lease shall be for a specific use or uses and shall not include waste lands, unless it is impractical to provide otherwise;
(8) Mineral and metallic rights and surface and
ground water shall be reserved to the State; [and]
(9) No lease of public lands, including submerged
lands, nor any extension of any such lease, shall be issued by the State to any
person to construct, use, or maintain a sunbathing or swimming pier or to use
the lands for such purposes, unless such lease, or any extension thereof,
contains provisions permitting the general public to use the pier facilities on
the public lands and requiring that a sign or signs be placed on the pier,
clearly visible to the public, which indicates the public's right to the use of
the pier. The board, at the earliest practicable date, and where legally
possible, shall cause all existing leases to be amended to conform to this
paragraph. The term "lease", for the purposes of this paragraph,
includes month-to-month rental agreements and similar tenancies[.];
and
(10) The lease shall obligate the lessee to enter into a proprietary interest protection agreement with any labor organization that actively seeks to represent the lessee's employees assigned to work at the leased premises. For the purposes of this paragraph, "proprietary interest protection agreement" means a written enforceable agreement that complies with the requirements of the National Labor Relations Act and contains provisions requiring, at a minimum, the lessee to maintain a neutral posture with respect to efforts by the labor organization to represent the lessee's employees, the parties to adhere to a card check procedure, and the labor organization and its members to refrain from engaging in picketing, work stoppages, boycotts, or other economic interference with the lessee's operation."
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on August 1, 2018.
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INTRODUCED BY: |
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Report Title:
Proprietary Interest Protection Agreements; Public Land Lease; Labor Relations
Description:
Requires public land leases to obligate a lessee to enter into a proprietary interest protection agreement with any labor organization representing the lessee's employees.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
