SB 1517: BLNR; Public Lands; Recreation-residence Use Leases; Public Lottery

A BILL FOR AN ACT

RELATING TO PUBLIC LANDS.

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

     SECTION 1.  The purpose of this Act is to establish a lottery system for the leasing of cabins on public lands for recreation-residence use.

     SECTION 2.  Section 171-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Good standing" means the status of a lessee being in full compliance with the lessee's obligations under the lease."

     SECTION 3.  Section 171-7, Hawaii Revised Statutes, is amended to read as follows:

     "§171-7  General duties of the board.  Except as provided by law, the board of land and natural resources through the chairperson shall:

     (1)  Maintain an accurate inventory of public lands;

     (2)  Prevent illegal activities on, unlawful occupation of, or trespassing on public lands;

     (3)  Cause all trespassers and persons unlawfully occupying public lands, and their effects, and all animals trespassing on the lands to be removed therefrom and to impound the animals according to law;

     (4)  Enter on any public land in order to take possession thereof, and to resume possession of any public land in case of surrender, forfeiture, or escheat;

     (5)  Enforce contracts respecting sales, leases, licenses, permits, or other disposition of public lands;

     (6)  Conduct all public auctions, lotteries, and sales pertaining to the disposition of public lands and other property authorized by the board;

     (7)  Recover money due the State for damage done to any public lands by wrongful entry and occupation or by wrongful removal therefrom or destruction of any property;

     (8)  Bring such actions and proceedings as may be necessary to carry out the powers and duties of the board in the name of the State and to defend such actions brought against the State as may be authorized;

     (9)  Keep a record of all official transactions, relating to public lands within the chairperson's jurisdiction and such record shall be a public record; and

    (10)  Administer oaths in all matters pertaining to the administration of the public lands."

     SECTION 4.  Section 171-44, Hawaii Revised Statutes, is amended to read as follows:

     "§171-44  Lease for recreation-residence use.  [[](a)[]]  Notwithstanding any limitations to the contrary, the board of land and natural resources may lease, by direct negotiation or by public lottery and without recourse to public auction, lands within a state park or forest reserve and other lands set aside under executive orders, for recreation-residence use for a period not to exceed [twenty] five years on such terms and conditions as may be prescribed by the board[.]; provided that:

     (1)  A lessee determined to be in good standing by the board at the expiration of the lessee's lease may directly negotiate with the board to extend the lease for an additional term not to exceed five years;

     (2)  Any extensions of a lease shall be based on the fair market value of the leased land, excluding any on site improvements; and

     (3)  A lessee shall notify the board in writing no less than sixty days before the termination of the lease if the lessee intends to extend the lease.

     [[](b)[]]  The [[]board[]] of land and natural resources shall enforce all provisions of recreation-residential use lease agreements and shall establish a schedule of penalties and fines for any breach of the provisions of a recreation-residential use lease agreement unless penalties and fines are specified in the lease agreement.

     (c)  Recreation-residence use leases offered by public lottery shall:

     (1)  Be offered at fair market value, to be determined by appraisal pursuant to section 171-17; and

     (2)  Be limited to one person per recreation-residence; provided that if two or more lessees intend to jointly reside in the same recreation-residence, only one lessee may enter the public lottery.

     (d)  The board may limit participation in the public lottery of recreation-residence use leases to residents of the same county in which the land to be leased is located; provided that limiting participation in the public lottery to residents of the county will be for the benefit of the residents of the county; ensure premises leased will be properly maintained by the lessee; and preserve the environmental, cultural, and scenic values of the leased premises.  If the number of county residents participating in the public lottery is fewer than the number of leases available, the board shall open the public lottery to all residents of the State, followed by nonresidents.

     (e)  Any transfer or assignment of a recreation-residence use lease shall be subject to a fee of $1,200, to be paid to the board.  The board shall annually increase or decrease the fee to reflect changes to the implicit price deflator for the gross domestic product as published by the Bureau of Economic Analysis, applied on a five-year rolling average."

     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 on April 23, 2057.

Report Title:

BLNR; Public Lands; Recreation-residence Use Leases; Public Lottery

Description:

Authorizes the Board of Land and Natural Resources to lease public lands for recreational-residential use by public lottery and restrict participation in the public lottery to residents of the county in which the leased land is located.  Lowers the maximum term for a lease of public lands for recreational‑residential use to five years.  Effective 4/23/2057.  (SD1)

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

A BILL FOR AN ACT

relating to public lands.

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

     SECTION 1.  The purpose of this Act is to establish a lottery system for the leasing of cabins on public lands for recreation-residence use.

     SECTION 2.  Section 171-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Good standing" means the status of a lessee being in full compliance with the lessee's obligations under the lease."

     SECTION 3.  Section 171-7, Hawaii Revised Statutes, is amended to read as follows:

     "§171-7  General duties of the board.  Except as provided by law, the board of land and natural resources through the chairperson shall:

     (1)  Maintain an accurate inventory of public lands;

     (2)  Prevent illegal activities on, unlawful occupation of, or trespassing on public lands;

     (3)  Cause all trespassers and persons unlawfully occupying public lands, and their effects, and all animals trespassing on the lands to be removed therefrom and to impound the animals according to law;

     (4)  Enter on any public land in order to take possession thereof, and to resume possession of any public land in case of surrender, forfeiture, or escheat;

     (5)  Enforce contracts respecting sales, leases, licenses, permits, or other disposition of public lands;

     (6)  Conduct all public auctions, lotteries, and sales pertaining to the disposition of public lands and other property authorized by the board;

     (7)  Recover money due the State for damage done to any public lands by wrongful entry and occupation or by wrongful removal therefrom or destruction of any property;

     (8)  Bring such actions and proceedings as may be necessary to carry out the powers and duties of the board in the name of the State and to defend such actions brought against the State as may be authorized;

     (9)  Keep a record of all official transactions, relating to public lands within the chairperson's jurisdiction and such record shall be a public record; and

    (10)  Administer oaths in all matters pertaining to the administration of the public lands."

     SECTION 4.  Section 171-44, Hawaii Revised Statutes, is amended to read as follows:

     "§171-44  Lease for recreation-residence use.  [[](a)[]]  Notwithstanding any limitations to the contrary, the board of land and natural resources may lease, by direct negotiation or by public lottery and without recourse to public auction, lands within a state park or forest reserve and other lands set aside under executive orders, for recreation-residence use for a period not to exceed twenty years on such terms and conditions as may be prescribed by the board[.]; provided that:

     (1)  A lessee determined to be in good standing by the board at the expiration of the lessee's lease may directly negotiate with the board to extend the lease for an additional term not to exceed twenty years;

     (2)  Any extensions of a lease shall be based on the fair market value of the leased land, excluding any on site improvements; and

     (3)  A lessee shall notify the board in writing no less than sixty days prior to the termination of the lease if the lessee intends to extend the lease.

     [[](b)[]]  The [[]board[]] of land and natural resources shall enforce all provisions of recreation-residential use lease agreements and shall establish a schedule of penalties and fines for any breach of the provisions of a recreation-residential use lease agreement unless penalties and fines are specified in the lease agreement.

     (c)  Recreation-residence use leases offered by public lottery shall:

     (1)  Be offered at fair market value, to be determined by appraisal pursuant to section 171-17; and

     (2)  Be limited to one person per recreation-residence; provided that if two or more lessees intend to jointly reside in the same recreation-residence, only one lessee may enter the public lottery.

     (d)  The board may limit participation in the public lottery of recreation-residence use leases to residents of the same county in which the land to be leased is located; provided that limiting participation in the public lottery to residents of the county will be for the benefit of the residents of the county; ensure premises leased will be properly maintained by the lessee; and preserve the environmental, cultural, and scenic values of the leased premises.  If the number of county residents participating in the public lottery is fewer than the number of leases available, the board shall open the public lottery to all residents of the State, followed by nonresidents.

     (e)  Any transfer or assignment of a recreation-residence use lease shall be subject to a fee of $1,200, to be paid to the board.  The board shall annually increase or decrease the fee to reflect changes to the implicit price deflator for the gross domestic product as published by the Bureau of Economic Analysis, applied on a five-year rolling average."

     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.

Report Title:

Public Lands; Recreation-residence Use Leases; Public Lottery

Description:

Authorizes the Board of Land and Natural Resources to lease public lands for recreational-residential use by public lottery and restrict participation in the public lottery to residents of the county in which the leased land is located.

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

STAND. COM. REP. NO. 992

Honolulu, Hawaii

RE:    S.B. No. 1517

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred S.B. No. 1517 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC LANDS,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the Board of Land and Natural Resources to lease public lands for recreational-residential use by public lottery and restrict participation in the public lottery to residents of the county in which the leased land is located.

     Your Committee received testimony in support of this measure from the Department of Land and Natural Resources, Kōkeʻe Leaseholders Association, and numerous individuals.

     Your Committee finds that the State has a unique asset in the recreational residential cabins in Kokee and Waimea Canyon State Parks, which were intended for temporary residence to allow families to gather and commune with nature while maintaining the parks.  However, many cabins have become unaffordable for local families to rent due to increases in rent appraisals and the auctioning off of unencumbered cabins at higher bid prices.  This measure will increase the accessibility of the cabins to local families by establishing a fairer and more equitable process for the affordable leasing of cabins on public lands for recreational‑residential use.

     Your Committee has amended this measure by:

     (1)  Lowering the maximum term for a lease of public lands for recreational-residential use to five years;

     (2)  Inserting an effective date of April 23, 2057, to encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1517, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1517, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

STAND. COM. REP. NO. 601

Honolulu, Hawaii

RE:    S.B. No. 1517

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Water and Land, to which was referred S.B. No. 1517 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC LANDS,"

begs leave to report as follows:

     The purpose and intent of this measure is to establish a lottery system for the leasing of cabins on public lands for recreation-residence use.

     Your Committee received testimony in support of this measure from the Department of Land and Natural Resources, Kōkeʻe Leaseholders Association, and numerous individuals.

     Your Committee finds that the rents charged for cabins on public lands are not affordable for local families.  This measure establishes a more fair and equitable process for prospective lessees to acquire affordable leases for cabins on public lands for recreation-residence use.

     As affirmed by the record of votes of the members of your Committee on Water and Land that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1517 and recommends that it pass Second Reading and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Water and Land,