Bill Text: HI HB596 | 2019 | Regular Session | Introduced

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Bill Title: Relating To Public Land Dispositions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-01-22 - Referred to WLH, JUD, FIN, referral sheet 4 [HB596 Detail]

Download: Hawaii-2019-HB596-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	596
THIRTIETH LEGISLATURE, 2019
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to public land dispositions.

 

 

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

 

     SECTION 1.  The legislature finds that the public trust lands must be properly stewarded for future generations and that rigorous procedures are required to protect the public interest before public lands are dedicated to private uses.

     The purpose of this Act is to prohibit the board of land and natural resources from issuing a lease for the use of public land if doing so could adversely impact the public.

     SECTION 2.  Chapter 171, Hawaii Revised Statutes, is amended by adding a new section to part II, subpart A, to be appropriately designated and to read as follows:

     "§171-     Disposition of public lands; prohibitions.  The board of land and natural resources shall not dispose of public lands if the disposition:

     (1)  Would adversely impact any trail, historic site, cultural site, traditional practice, or natural resource;

     (2)  Would impair public access to a recreational area; or

     (3)  Is by lease or sale to a person who, within the past twenty years, has:

          (A)  Violated any law related to land use, environmental protection, historic and cultural property or resources, civil rights, occupational safety, or labor; or

          (B)  Breached any agreement made with a government agency relating to land use entitlement."

     SECTION 3.  Section 171-33, Hawaii Revised Statutes, is amended to read as follows:

     "§171-33  Planning; generally.  (a)  Prior to any notice of intended disposition, the board of land and natural resources shall:

     (1)  Classify the land according to its use or uses as provided in this chapter;

     (2)  Determine the specific use or uses for which the disposition is intended;

     (3)  Parcel land into units of minimum size areas related to the intended specific use or uses and sufficient for an economic operation, hereinafter called an "economic unit";

     (4)  Determine the requirements for the construction of building or other improvements, which are necessary or desirable to encourage the highest use of the land;

     (5)  Determine the upset price or lease rental, based upon the fair market value of the land employed to the specific use or uses for which the disposition is being made, with due consideration for all of the terms and conditions of the disposition;

     (6)  Determine the necessary conditions of disposition which will discourage speculation;

     (7)  In the case of leases, determine the minimum tenure necessary to support the intended use or uses and the necessity for periodic rent openings in long-term leases to assure the State a fair return;

     (8)  Prepare the proposed documents and make them available for public inspection;

     (9)  Determine, two years before the expiration of the term of any lease, whether the premises are to be demised for the same use or uses under a new lease or whether all or any part thereof is to be reserved for other use or uses and then promptly notify the lessee of the determination.

     (b)  Within ninety days of receipt of any notice of intended disposition and prior to issuing any lease, the board of land and natural resources shall complete an analysis of the intended disposition.  At a minimum, the analysis shall include:

     (1)  Alternative uses of the land and alternatives available to the prospective lessee; and

     (2)  A review of documents submitted by the prospective lessee regarding the amounts that the lessee would otherwise pay for a lease to use comparable private land."

     SECTION 4.  Section 171-59, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  A lease of public land may be disposed of through negotiation upon a finding by the board of land and natural resources that the public interest demands it[.] and that the disposition would comply with section 171-   (1) and (2).  Where the public land is being sought under this section by a sugar or pineapple company, and the company is the owner or operator of a mill or cannery, then, for the purposes of this section, the economic unit shall be that acreage of public land which when taken together with the lands already owned or controlled or available to the company, when cultivated is found by the board to be necessary for the company's optimum mill or cannery operation.  In all other cases, public land to be sold under this section shall be an economic unit as provided in section 171-33(3).

     After a determination is made to negotiate the disposition of a lease, the board shall:

     (1)  Give public notice as in public auction, in accordance with the procedure set forth in section 171-16(a), of its intention to lease public land through negotiation setting forth the minimum conditions thereunder, the use for which the public land will be leased.  Any person interested in securing the lease shall file an application with the board not later than forty-five days after the first publication of the notice[;], which shall include information regarding the amounts that the person would otherwise pay for a lease to use comparable private land;

     (2)  Establish reasonable criteria for the selection of the lessee; provided that where the intended use of the land is agriculture, the department of agriculture shall establish the criteria;

     (3)  Determine the applicants who meet the criteria for selection set by section 171-   (3) and the board or the department of agriculture, as the case may be, and notify all applicants of its determination.  Any applicant may examine the basis of the determination, which shall be in writing, to ascertain whether or not the conditions and criteria established by the board or the department of agriculture were followed; provided that if any applicant does not notify the board of the applicant's objections, and the grounds therefor, in writing, within twenty days of the receipt of the notice, the applicant shall be barred from proceeding to seek legal remedy for any alleged failure of the board to follow the conditions and criteria.

     If only one applicant meets the criteria for selection of the lessee, the board may, after notice as provided in (3), above, dispose of the lease by negotiation.

     If two or more applicants meet the criteria for the selection of the lessee, the board shall select the lessee who submits the highest offer contained in a sealed bid deposited with the board.

     (b)  Disposition of public lands for airline, aircraft, airport-related, agricultural processing, cattle feed production, aquaculture, marine, maritime, and maritime-related operations may be negotiated without regard to the limitations set forth in subsection (a) and section 171-16(c); provided that:

     (1)  The disposition encourages competition within the aeronautical, airport-related, agricultural, aquaculture, maritime, and maritime-related operations;

     (2)  The disposition shall not exceed a maximum term of thirty-five years, except in the case of:

          (A)  Maritime and maritime-related operations, which may provide for a maximum term of seventy years; and

          (B)  Aquaculture operations, which may provide for a maximum term of sixty-five years; provided that  aquaculture operations in good standing may seek to renew a lease issued under this section and, during the lease term, may engage in supportive activities that are related to or integrated with aquaculture; [and]

     (3)  The method of disposition of public lands for cattle feed production as set forth in this subsection shall not apply after December 31, 1988[.]; and

     (4)  The disposition does not violate section 171-   .

For the purposes of this subsection:

     "Agricultural processing" means the processing of agricultural products, including dairying, grown, raised, or produced in Hawaii.

     "Airport-related" means a purpose or activity that requires air transportation to achieve that purpose or activity; or an activity that generates revenue for the airport system as provided in section 261-7.

     "Aquaculture" means the propagation, cultivation, or farming of aquatic plants and animals in controlled or selected environments for research, commercial, or stocking purposes, including aquaponics or any growing of plants or animals with aquaculture effluents.

     "Maritime-related" means a purpose or activity that requires and is directly related to the loading, off-loading, storage, or distribution of goods and services of the maritime industry."

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Public Lands; DLNR; Leases

 

Description:

Requires the Board of Land and Natural Resources to analyze an intended lease disposition within 90 days.  Prohibits the board from issuing any lease that would impact certain cultural, historical, or recreational areas.  Prohibits the board from issuing any lease to a person that has previously violated certain laws.

 

 

 

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