Disposition
HRS §166E-8
in effect166E-8. Disposition
(a) Any provision of this chapter to the contrary notwithstanding, the department may dispose of:
(1) Public lands and related facilities set aside and
designated for use pursuant to this chapter; and
(2) Other lands and facilities under the jurisdiction
of the department pursuant to section 166E‑9 and notwithstanding chapter 171,
by negotiation, drawing of lot, conversion, or
public auction.
Except as provided by subsection (d), the
department shall dispose of public lands by lease.
(b) In all dispositions, the department shall
be subject to the requirements set forth in rules adopted by the board
consistent with section 166E-6 and subject to the following:
(1) All land and facilities shall be disposed of for
purposes of agricultural or aquacultural activities only;
(2) Each lessee shall derive a major portion of the
lessee's total annual income earned from the lessee's activities on the
premises; provided that this restriction shall not apply if:
(A) Failure to meet the restriction results
from mental or physical disability or the loss of a spouse; or
(B) The premises are fully used in the
production of crops or products for which the disposition was granted;
(3) The lessee shall comply with all federal and
state laws regarding environmental quality control;
(4) The board shall:
(A) Determine the specific uses for which the
disposition is intended;
(B) Parcel the land into minimum size
economic units sufficient for the intended uses;
(C) Make, or require the lessee to make,
improvements that are required to achieve the intended uses;
(D) Set the upset price or lease rent based
upon an appraised evaluation of the property value, adjustable to the specified
use of the lot;
(E) Set the term of the lease that shall be
not less than fifteen years nor more than sixty-five years, including any
extension granted for mortgage lending or guarantee purposes; and
(F) Establish other terms and conditions it
deems necessary, including but not limited to restrictions against alienation
and provisions for withdrawal by the board; and
(5) Any transferee, assignee, or sublessee of a
non-agricultural park lease shall first qualify as an applicant under this
chapter. For the purpose of this paragraph, any transfer, assignment, sale, or
other disposition of any interest, excluding a security interest, by any legal
entity that holds a non-agricultural park lease shall be treated as a transfer
of the non-agricultural park lease and shall be subject to the approval of the
board and to reasonable terms and conditions, consistent with this chapter or
rules of the board that the board may deem necessary. No transfer shall be
approved by the board if the disposition of the stock or assets or other
interest of the legal entity would result in the failure of the entity to
qualify for a non-agricultural park land lease.
(c) After notice of the breach or default as
provided in rules adopted by the board consistent with section 166E-6, a
violation of any provision in this section shall be cause for the board to
cancel the lease and take possession of the land.
(d) The board may issue easements, licenses,
permits, and rights-of-entry for uses that are consistent with the purposes for
which the lands were set aside or are otherwise subject to the authority of the
department pursuant to section 166E‑9.
[L 2006, c 157, pt of §1]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol03_Ch0121-0200D/HRS0166E/HRS_0166E-0008.htmFetched: 11/10/2026