Vetoed by Governor Linda Lingle

Vote Smart's Synopsis:

Vote to adopt a conference report that extends the repeal date of a law requiring rent amounts for leases of commercial or industrial property, when subject to renegotiation, to be "fair and reasonable" ("Act 189") from June 30, 2010 to June 30, 2013.

Highlights:

-Extends the repeal date of the following regulations from June 30, 2010 to June 30, 2013 (Sec. 1):

-Requires any lease of commercial or industrial leasehold properties that provide for renegotiation of the rental amount or other requirements, and the renegotiated amount is based on a "fair and reasonable" annual rent, to meet the following requirements:
-Be "fair and reasonable" to both the lessor and lessee; and -Take into account circumstances relating to the lease, including the use and intensity of use of the property, and the surface and subsurface characteristics of the property and surrounding neighborhood on the renegotiation date;
-Requires a master lessee to limit any sublease rental amount renegotiated or renewed to the "fair and reasonable" amount or the rental amount calculated under the renegotiation or renewal provisions of the sublease; -Requires master lessees to make a "good faith effort" to require sublessors to comply with these requirements when determining sublease rental amounts; and -Defines "commercial or industrial leasehold property" as any ground lease of real property in the state that meets the following criteria:
-The property is zoned by a county for commercial or industrial use; -Is subject to a lease with a term of 10 years or more and an unexpired term of 5 years or more; and -The lessor is the owner, directly or indirectly, of 50,000 square feet or more of industrial and commercial property in the state.

Full Bill Text