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Land‑exchange bill draws DLNR concerns over public trust and oversight
Summary
SB 739, which would authorize expedited land exchanges for housing and transit‑oriented development, prompted DLNR to ask that the Board of Land and Natural Resources retain approval authority and for reversion clauses to protect public‑trust lands. Farm and ag groups supported the bill with caveats.
Lawmakers considered SB 739, a bill proposing a streamlined process for state land exchanges intended to facilitate affordable housing and transit‑oriented development near rail stations.
DLNR testified the bill as drafted gave broad discretion to the governor and could allow exchanges of public‑trust (ceded) lands without the typical public Board of Land and Natural Resources (BLNR) review. “When we’re talking about public‑land trust lands…this bill, as written, would allow the governor sole authority to engage in those land exchanges,” said Ryan Kanakauole of DLNR. DLNR recommended amending the bill so exchanges remain subject to BLNR approval and public transparency.
DLNR also urged a reversionary clause to ensure that lands transferred into private hands would carry enforceable obligations — for example, to deliver affordable housing — and revert to state control if conditions were not met. The department offered suggested amended language to the chairs.
Supporters including the Hawaii Farm Bureau described the bill as a tool to protect agricultural lands by exchanging state lands near transit for privately owned agricultural properties. Brian Miyamoto said the measure could prevent development pressure on farmland by creating land‑swap options tied to rail station areas.
Committee members questioned the bill’s scope and whether the BLNR or the governor should have final approval. DLNR emphasized that board review provides transparency and public notice, which would be lost under the governor‑only approach.
The committee adopted DLNR’s suggested changes: technical edits, deferral of the effective date for drafting, and language clarifying that land‑exchange approvals remain subject to the BLNR and to reversionary protections when appropriate. Representative Iwamoto recorded a no vote on final passage; the committees otherwise approved the chairs’ recommendation.
