Review and Remediation of Existing Leases

(a)The Commission is directed to review each lease it has entered into prior to the effective date of this Section with an eligible beneficiary and identify whether the issuance of the lease occurred contrary to any law or regulation of the Commission. The Commission shall also determine whether the current lessee is in compliance with the terms of their lease, including complying with §§ 75A108 and 75A109 of this Article. The Commission shall serve the lessee with a notice of the Commission’s determination under this Subsection

(a)at the lessee’s address of record on file with the Commission.

(b)If the Commission makes a finding that:

(1)the lease was issued in a manner contrary to the regulations of the Commission; and

(2)the lessee is otherwise in full compliance with the terms of their lease, the law, and the Commission’s regulations, the Commission shall issue the lessee a new lease for a term to equal the terms of the lessee’s existing lease. Any other provisions of a new lease shall be substantially the same as the terms of any prior lease.

(3)For purposes of this Section, “full compliance” means that the lessee has complied with all other legal obligations to obtain and maintain their lease except for compliance with laws or regulations regarding the initial issuance of the lease. For purposes of determining full compliance as required by Subsection 2 of this Section, a lessee whose lease exceeds the authorized acreage limits set out at § 75A107(a) and who is otherwise in compliance with all other lease obligations shall be deemed in full compliance with the terms of the lease. Any new lease issued to a lessee whose original lease exceeds the authorized acreage limits set out at § 75A107(a) shall require that the leased acreage comply with the authorized acreage limits of § 75A107(a) as enacted at the time of original award or a maximum of two

(2)acres, not later than a transfer of the lease to other than a spouse pursuant to § 75A109(a) or 18 GARR, Chapter 6A, § 6A128. The Commission and a lessee are authorized to enter into a lease modification at any time to bring the leased acreage into compliance with the authorized acreage limits of § 75A107(a). The Commission and a lessee are authorized to enter into a commercial agriculture or aquaculture lease, if applicable, for acreage exceeding two

(2)acres in the original lease.

(c)If the Commission makes a finding that: CH. 75A CHAMORRO LAND TRUST COMMISSION EFFECTIVE JANUARY 1, 2021

(1)the lease was issued in a manner consistent or contrary to the regulations of the Commission; and

(2)the lessee is otherwise not in full compliance with the terms of their lease, the law, or the Commission’s regulations, the Commission shall issue the lessee a Notice to Remediate. The Notice to Remediate shall identify the lessee’s noncompliance with the terms of their lease and shall direct the lessee to come into compliance within one

(1)year. Any Notice to Remediate shall be appealable in accordance with the Commission’s regulations. If the lessee comes into compliance, the Commission shall issue the lessee a new lease in accordance with Subsection

(b)of this Section. If the lessee fails to come into full compliance with the Notice to Remediate, the Commission shall seek to terminate any leasehold claims the lessee may have, in accordance with the Commission’s regulations.

(3)For purposes of this Section, “full compliance” means that the lessee has complied with all other legal obligations to obtain and maintain their lease except for compliance with laws or regulations regarding the initial issuance of the lease. For purposes of determining full compliance as required by Subsection 2 of this Section, a lessee whose lease exceeds the authorized acreage limits set out at § 75A107(a) and who is otherwise in compliance with all other lease obligations shall be deemed in full compliance with the terms of the lease. Any new lease issued to a lessee whose original lease exceeds the authorized acreage limits set out at § 75A107(a) shall require that the leased acreage comply with the authorized acreage limits of § 75A107(a) as enacted at the time of original award or a maximum of two

(2)acres, not later than a transfer of the lease to other than a spouse pursuant to § 75A109(a) or 18 GARR, Chapter 6A, § 6A128. The Commission and a lessee are authorized to enter into a lease modification at any time to bring the leased acreage into compliance with the authorized acreage limits of § 75A107(a). The Commission and a lessee are authorized to enter into a commercial agriculture or aquaculture lease, if applicable, for acreage exceeding two

(2)acres in the original lease.

(d)The Commission shall complete the requirements of Subsection

(a)no later than December 31, 2027.

(e)The Commission shall complete the requirements of Subsections

(b)and

(c)not later than December 31, 2029.

(f)Where the Commission makes a finding that a lessee should be issued a new lease pursuant to Subsection

(b)of this Section, but the lessee has not executed a new lease by December 31, 2029, the Commission shall seek to terminate any leasehold claims the lessee may have, in accordance with the Commission’s regulations.

(g)When the Commission executes a new lease pursuant to Subsection

(b)of this Section the Commission may execute such additional documents as may be necessary to reaffirm any loans or loan guarantees that the lessee may have previously entered into with the consent of the Commission.

(h)Where the Commission has determined that any land subject to a Commission lease is unregistered, the Commission shall move to register the land pursuant to Title 21, Chapter 29. Upon registration, if the lessee is otherwise in full compliance with the terms of the lease, the law, and the Commission’s regulations, the Commission shall issue the lessee a new lease pursuant to Subsection

(b)of this Section. Where the lessee is not in full compliance with the terms of the lease, the law, or the Commission’s regulations, the Commission shall issue a Notice to Remediate pursuant to Subsection

(c)of this Section.

(i)The Commission shall use its best efforts to issue new leases to eligible beneficiaries who have not received a Commission lease concurrent with its duties under this Section. Where the Commission offers a lease to an eligible beneficiary who declines the lease offer, in writing, the eligible beneficiary shall retain their priority for additional leases. If the Commission has offered an eligible beneficiary three

(3)leases CH. 75A CHAMORRO LAND TRUST COMMISSION EFFECTIVE JANUARY 1, 2021 and the eligible beneficiary declines each opportunity to lease, the eligible beneficiary shall be deemed to have terminated their rights to any benefits provided by the Commission.