Haw. Code R. § 4-158-20 - Additional terms and conditions

(a) The lessee, within a-reasonable period of time and in accordance with the plan of development and utilization provided for in subsection (d), shall derive the major portion of the lessee's annual income from the production of livestock, poultry, crops or products for which the land is granted to the lessee; provided that this restriction shall not apply if failure to meet the restriction results from mental or physical disability or the loss of a spouse, or if the premises are fully utilized in the production of crops or products for which the disposition was granted. The lessee shall promptly provide information and documents requested by the administrator, including but not limited to copies of income tax returns, to verify that the income requirement is being met.

(b) The lessee shall furnish the department, prior to the issuance of the executed lease, the following:

(1) A certificate of comprehensive liability insurance to be maintained throughout the term of the lease with coverage in an amount to be determined by the administrator and approved by the board, subject to periodic review and adjustment at intervals specified in the lease. The certificate of insurance shall name the department as an additional insured and shall require a thirty-day notice to the department of any policy change or cancellation; and

(2) A performance bond to be maintained throughout the term of the lease in an amount equal to two times the annual base rental; provided that the bond requirement may be waived by the administrator upon evidence that the lessee is substantially in compliance with lease terms and the lessee's lot is substantially developed according to plans approved by the department; provided further that the department may reinstate the waived bond at any time during the term of the lease.

(c) The board, at its discretion, may permit a farm dwelling or dwellings on a leased lot if the need is clearly demonstrated. The farm dwelling or dwellings shall be used in connection with agricultural or aquacultural activities on the lot and shall not be used for rental purposes. The dwelling shall be subject to such additional terms and conditions as the board may require, including, but not limited to, adjustment of the base rental to reflect residential use.

(d) The lessee shall utilize the land only for the purposes specified in the lease, in accordance with a plan of development and utilization which shall be submitted for the administrator's approval prior to the issuance of the lease. The lessee shall not modify or deviate from the plan without the approval of the department and any unapproved modification or deviation from the plan may be cause for the termination of the lease.

(e) All construction on the leased lot shall be in accordance with plans approved by the administrator and shall be in accordance with all applicable federal, state, and county laws, ordinances, and rules, including but not limited to laws regarding environmental quality control.

(f) When a notice of lease disposition covers more than one lot or parcel, each lessee shall bear a pro rata share of the cost of the services referenced in subsection (b) and the pro rata share shall be determined by the administrator.

(g) " The administrator or the administrator's authorized representative has the right to inspect, at reasonable hours, the leased property and the improvements, crops, livestock, equipment, chattels, books, and records of the lessee in connection with the administration of the lease.

Notes

Haw. Code R. § 4-158-20

[Eff DEC 06 2007] (Auth: HRS § 166E-6; § 166E-8) (Imp: HRS § 166E-6; § 166E-8)