SB 2596: Land Use; State Government; Leases
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2026-03-27
Current Status:
Failed
(2026-03-30: Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Lowen, Perruso, Quinlan excused (4).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
What does this bill do?
This bill requires that when one state agency leases land or buildings to another state agency, the rent be no more than $1 per year. The leased space must be used in ways that match the owning agency’s mission and cannot be subleased, and the $1 rule does not apply if a department is using the property to meet a core responsibility (its main duty).
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Requires that real property leases between state government entities cost no more than $1 per year except if the real property subject to the lease is being used by a department to meet a core responsibility of that department. Effective 7/1/3000. (HD1)
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)
Requires that real property leases between state government entities cost no more than $1 per year.
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THE SENATE |
S.B. NO. |
2596 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 1 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO GOVERNMENT LEASES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§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 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 on July 1, 3000.
Report Title:
Land Use; State Government; Leases
Description:
Requires that real property leases between state government entities cost no more than $1 per year except if the real property subject to the lease is being used by a department to meet a core responsibility of that department. Effective 7/1/3000. (HD1)
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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THE SENATE |
S.B. NO. |
2596 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO GOVERNMENT LEASES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§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)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
2596 |
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THIRTY-THIRD LEGISLATURE, 2026 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to government leases.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§171- Intrastate government leases. (a) 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 lessee's mission; and
(2) The lessee shall not sublease the real property.
(b) 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.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
Land Use; State Government; Leases
Description:
Requires that real property leases between state government entities cost no more than $1 per year.
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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Date
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Status
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| Mar 30, 2026 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Lowen, Perruso, Quinlan excused (4). |
| Mar 30, 2026 | Reported from WAL (Stand. Com. Rep. No. 1526-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN. |
| Mar 24, 2026 | The committee on WAL recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Hashem, Morikawa, Ichiyama, Poepoe, Woodson; Ayes with reservations: Representative(s) Iwamoto, Shimizu, Souza; Noes: none; and 1 Excused: Representative(s) Belatti. |
| Mar 20, 2026 | Bill scheduled to be heard by WAL on Tuesday, 03-24-26 9:00AM in House conference room 411 VIA VIDEOCONFERENCE. |
| Mar 12, 2026 | Referred to WAL, FIN, referral sheet 17 |
| Mar 12, 2026 | Pass First Reading |
| Mar 10, 2026 | Received from Senate (Sen. Com. No. 266) in amended form (SD 1). |
| Mar 10, 2026 | Report adopted; Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Mar 6, 2026 | 48 Hrs. Notice 03-10-26. |
| Mar 6, 2026 | Reported from WAM (Stand. Com. Rep. No. 3003) with recommendation of passage on Third Reading, as amended (SD 1). |
| Mar 2, 2026 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Feb 25, 2026 | The committee(s) on WAM deferred the measure until 03-02-26 10:01AM; Conference Room 211 & Videoconference. |
| Feb 23, 2026 | The committee(s) on WAM will hold a public decision making on 02-25-26 10:55AM; Conference Room 211 & Videoconference. |
| Feb 20, 2026 | Report adopted; Passed Second Reading and referred to WAM. |
| Feb 20, 2026 | Reported from WLA/GVO (Stand. Com. Rep. No. 2671) with recommendation of passage on Second Reading and referral to WAM. |
| Feb 19, 2026 | The committee(s) on GVO recommend(s) that the measure be PASSED, UNAMENDED. The votes in GVO were as follows: 4 Aye(s): Senator(s) McKelvey, Gabbard, Hashimoto, Moriwaki; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Awa. |
| Feb 19, 2026 | The committee(s) on WLA recommend(s) that the measure be PASSED, UNAMENDED. The votes in WLA were as follows: 5 Aye(s): Senator(s) Lee, C., Inouye, Chang, Lamosao, DeCorte; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Feb 13, 2026 | The committee(s) on WLA/GVO has scheduled a public hearing on 02-19-26 3:10PM; Conference Room 225 & Videoconference. |
| Jan 28, 2026 | Referred to WLA/GVO, WAM. |
| Jan 23, 2026 | Passed First Reading. |
| Jan 23, 2026 | Introduced. |
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Date
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Description
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Location
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Votes
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| Mar 24, 2026 | The committee on WAL recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Water & Land |
Passed |
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| Mar 10, 2026 | Third Reading | Senate Floor |
Passed |
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| Mar 2, 2026 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Ways and Means |
Passed |
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| Feb 19, 2026 | The committee(s) on GVO recommend(s) that the measure be PASSED, UNAMENDED | Senate Standing Committee on Government Operations |
Passed |
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| Feb 19, 2026 | The committee(s) on WLA recommend(s) that the measure be PASSED, UNAMENDED | Senate Standing Committee on Water, Land, Culture and the Arts |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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| Department of Transportation | *** Against | Mar 24, 2026 |
STAND. COM. REP. NO. 3003
Honolulu, Hawaii
RE: S.B. No. 2596
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred S.B. No. 2596 entitled:
"A BILL FOR AN ACT RELATING TO GOVERNMENT LEASES,"
begs leave to report as follows:
The purpose and intent of this measure is to increase the utilization of state property.
Specifically, this measure requires real property leases between state government entities to cost no more than $1 per year.
Your Committee received written comments in support of this measure from one individual.
Your Committee received written comments on this measure from the Department of Land and Natural Resources and University of Hawaii.
Your Committee finds that state agencies should work together for the public good and that, therefore, real property leases between state agencies should not be for profit. Your Committee further finds that capping the cost of certain intergovernmental leases will help to increase the utilization and productivity of state property.
Your Committee has amended this measure by:
(1) Adding language that exempts leases in which 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, Hawaii Revised Statutes; and
(2) Making a technical nonsubstantive edit for purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2596, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2596, S.D. 1.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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________________________________ DONOVAN M. DELA CRUZ, Chair |
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STAND. COM. REP. NO. 2671
Honolulu, Hawaii
President of the Senate
Thirty-Third State Legislature
State of Hawaii
Sir:
Your Committees on Water, Land, Culture and the Arts and Government Operations, to which was referred S.B. No. 2596 entitled:
"A BILL FOR AN ACT RELATING TO GOVERNMENT LEASES,"
beg leave to report as follows:
The purpose and intent of this measure is to require real property leases between state government entities to cost no more than one dollar per year.
Your Committees received comments on this measure from the Department of Land and Natural Resources.
Your Committees find that being able to effectively and affordably establish real property leases between state government entities is essential to the Department of Land and Natural Resources' ability to fulfill its responsibilities. Your Committees believe that real property leases between state government entities should not be for profit. This measure will therefore increase the utilization of state property.
Your Committees note the concerns raised in testimony and discussed at the public hearing on this measure. Due to the time constraints of the legislative calendar, your Committees have not amended this measure at this time; however, your Committees intend to continue working with stakeholders to address the concerns raised in testimony and to resolve outstanding issues as the measure moves forward through the legislative process.
As affirmed by the records of votes of the members of your Committees on Water, Land, Culture and the Arts and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2596 and recommend that it pass Second Reading and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committees on Water, Land, Culture and the Arts and Government Operations,
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________________________________ ANGUS L.K. MCKELVEY, Chair |
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________________________________ CHRIS LEE, Chair |
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Date
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Testimony PDF
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| Mar 24, 2026 | SB2596_SD1_TESTIMONY_WAL_03-24-26_.PDF |
| Feb 24, 2026 | SB2596_TESTIMONY_WAM_02-25-26_.PDF |
| Feb 19, 2026 | SB2596_TESTIMONY_WLA-GVO_02-19-26_.PDF |
Discussed in Hearing
5MIN
House Standing Committee on Water & Land
1MIN
House Standing Committee on Water & Land
29SEC
Senate Standing Committee on Ways and Means
24SEC
Senate Standing Committee on Government Operations
24SEC
Senate Standing Committee on Public Safety and Military Affairs
24SEC
Senate Standing Committee on Water, Land, Culture and the Arts
1MIN
Senate Standing Committee on Government Operations
1MIN
Senate Standing Committee on Public Safety and Military Affairs
Bill Author
