Bill Text: HI SB3160 | 2024 | Regular Session | Amended


Bill Title: Relating To Inspections On Public Land.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-02-14 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC/WAM. [SB3160 Detail]

Download: Hawaii-2024-SB3160-Amended.html

THE SENATE

S.B. NO.

3160

THIRTY-SECOND LEGISLATURE, 2024

S.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO INSPECTIONS ON PUBLIC LAND.

 

 

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

 


     SECTION 1.  The legislature finds that under chapter 171, Hawaii Revised Statutes, and the terms and conditions of the various land dispositions approved by the board of land and natural resources, the department of land and natural resources (department) has authority to periodically inspect the premises under lease, license, or revocable permit.  However, due to staff constraints, the department's land agents are not able to conduct regular inspections of every property under lease, license, or revocable permit.  Additionally, the department's land agents are typically not architects, engineers, or licensed contractors and may not be qualified to identify components of existing structures on the premises in need of repair or replacement.  Furthermore, to the extent the department's land agents are able to identify items requiring repair or replacement, existing lease terms and conditions do not provide the department with sufficient leverage to compel the lessee to make the necessary repair or replacement.  This is particularly problematic at the end of a long-term lease when the lessee has little incentive to invest significant funds in the upkeep of the property.

     The legislature further finds that the house investigative committee (committee), established under House Resolution No. 164 during the 2021 regular session, was tasked with, among other things, reviewing audit report No. 19-12 by the state auditor, on the department's special land and development fund.  Rather than having the department's land agents conduct the inspections, the committee recommended that the department require lessees to pay for third-party inspectors selected by the department to conduct physical inspections of the leased property every five years.  The committee further recommended that, if the third-party inspector finds any defaults with the lease terms, the lessee should be required to take any corrective actions recommended by the inspector.

     The purpose of this Act is to establish a statutory framework for inspections of public land leases, licenses, and revocable permits by the department, provided that:

     (1)  The inspections may be conducted by qualified third-party inspectors contracted by the department but paid for by the lessee, licensee, or permittee, as applicable; and

     (2)  If the inspection identifies items needing repair or replacement, the lessee, licensee, or permittee will be required to make the necessary repair or replacement at its expense or risk termination of its land disposition.

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

     "§171-    Inspection of demised premises.  (a)  The department may conduct inspections of all public land subject to a lease, license, or revocable permit to ensure that:

     (1)  The land is being used for the purpose for which it was originally leased or an alternative use as provided and approved by the board pursuant to section 171-36;

     (2)  No unauthorized activities are taking place on the land;

     (3)  The lease or license has not been transferred or assigned in violation of section 171-36 and the revocable permit has not been transferred or assigned in violation of its terms and conditions;

     (4)  No portion of the land has been sublet in violation of section 171-36 or the terms and conditions of the lease, license, or revocable permit;

     (5)  No hazardous materials are present on the land, except as specifically authorized under and in conformity with the applicable lease, license, or revocable permit; and

     (6)  All structures, buildings, and improvements to the land are maintained in acceptable condition so that:

          (A)  The purpose of the lease, license, or revocable permit may be adequately and safely fulfilled;

          (B)  The use or conditions of the land do not endanger the health and safety of individuals present on the land or the public; and

          (C)  All property and improvements that may revert to the State at the termination of the lease, license, or revocable permit are present and maintained in functional and safe condition.

Notice of inspections shall be given in accordance with the terms and conditions of lease, license, or revocable permit, as applicable, or in the event the applicable disposition document is silent as to the notice required, then in writing to the lessee, licensee, or permittee at least five business days prior to the inspection.  No notice shall be required for inspections conducted in response to an emergency.  For the purposes of this subsection, "emergency" means any occurrence, or imminent threat thereof, that results or may likely result in substantial injury or harm to a natural person or substantial damage to or loss of property or substantial damage to or loss of the environment.

     (b)  Inspections pursuant to this section may be conducted by a disinterested third-party inspector contracted by the department; provided that any land agent of the department and any party to the lease, license, or revocable permit may be present during the inspection and may observe the inspection.  All costs of the inspection shall be paid by the lessee, licensee, or permittee.  Inspectors shall submit a report of findings and recommendations to the department no later than fifteen days after the inspection has been completed.  The department may use the inspector's report as a basis for taking any corrective action in regard to the lease, license, revocable permit, or land that is allowable under this chapter.  Any action taken by the department pursuant to the inspector's report shall be carried out in conformity with the requirements of this chapter.  The lessee, licensee, or permittee shall be responsible for the cost of and for carrying out any corrective action required under this section.

     (c)  It shall be a violation of the provisions of the applicable lease, license, or permit for any lessee, licensee, or permittee to:

     (1)  Prevent, interfere with, unduly influence, obstruct, refuse to cooperate with, hinder, or unreasonably delay any inspection required by this section or attempt to do so;

     (2)  Harass, interfere with, unduly influence, obstruct, refuse to cooperate with, hinder, or unreasonably delay any inspector, land agent, or officer or employee of the department acting in accordance with this section or attempt to do so; or

     (3)  Refuse to comply with, interfere with, obstruct, refuse to cooperate with, hinder, or unreasonably delay any corrective action ordered by the department pursuant to an inspector's report submitted pursuant to this section or attempt to do so;

provided that the board may impose any penalty allowable for violation of this chapter including termination of the lease, license, or revocable permit, assessment of administrative penalties, and imposition of fines.

     This section shall be incorporated as a provision of all the board's hereafter entered into leases, licenses, and revocable permits by operation of law as of the effective date of the Act establishing this section."

     SECTION 3.  If any provision of this Act or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.


 


 

Report Title:

DLNR; Public Land; Inspections

 

Description:

Establishes a statutory framework for inspections of public land leases, licenses, and revocable permits by the Department of Land and Natural Resources.  Takes effect 7/1/2050.  (SD1)

 

 

 

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

 

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