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HB1847
HOUSE OF REPRESENTATIVES
H.B. NO.
1847
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to the banyan drive community development district
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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Chapter 206E, Hawaii Revised Statutes, is
amended by adding a new part to be appropriately designated and to read as
follows:
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"
PART
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.
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BANYAN DRIVE COMMUNITY DEVELOPMENT DISTRICT
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�206E-
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Banyan Drive community development
district; findings; purpose.
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The
legislature finds that the Waiakea peninsula area in east Hawaii island, which includes
Banyan Drive, is underutilized.
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The area
lacks a sense of safety and security due to a lack of landscaping, the
conditions of the banyan trees, the poor lighting, and other blight conditions
that make for an unpleasant pedestrian experience.
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In addition, the area is deficient in basic public
facilities that support residents and visitors, including recreational,
educational, and entertainment facilities.
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Despite the current condition, the area has exceptional potential for revitalization.
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The close proximity to the cruise ship
terminal, Merrie Monarch Festival sites, and Hilo town makes the area suitable
for economic and tourism development activities that foster community, promote
cultural activities, and support economic sustainability.
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Regaining state control over lands in the
district in the near term is essential and necessary to revitalize the area.
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Through the Hawaii community development authority,
the area can be revitalized in such a way that hotel, commercial, public, and cultural
uses can coexist while providing value to the island of Hawaii and the State.
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�206E-
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Definitions.
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As used in this part:
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"District"
means the Banyan Drive community development district.
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"Fund"
means the Banyan Drive community development district special fund.
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�206E-
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District established; boundaries.
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The Banyan Drive community development
district is hereby established.
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The
district shall include the area bounded by the Wailoa river on the west; Kamehameha
avenue, inclusive, from its intersection with the Wailoa river to Kalanianaole
street on the south;
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Kalanianaole street,
inclusive, from Kamehameha avenue to its intersection with Banyan way on the
southeast; Banyan way, inclusive, from Kalanianaole street to Reeds bay on the
east; and all lands from any parcel in those boundaries makai to the ocean in
addition to Moku Ola, also known as Coconut island, on the north.
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�206E-
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Banyan Drive redevelopment agency;
chairperson; established.
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(a)
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The Banyan Drive redevelopment agency is
hereby established.
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The Banyan Drive redevelopment
agency shall be an entity of the authority and responsible for implementing
this part.
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(b)
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The Banyan Drive redevelopment agency shall be headed by a chairperson to
be known as the chairperson of the Banyan Drive redevelopment agency.
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The chairperson of the Banyan Drive
redevelopment agency shall be appointed by and shall serve at the pleasure of
the authority.
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�206E-
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Development guidance policies.
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(a)
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The following development guidance policies
shall generally govern the authority's actions in the district:
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(1)
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Development shall seek to promote
cultural activities, provide community facilities, and foster sustainable economic
growth by encouraging diverse land uses and private sector investments;
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(2)
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Hawaiian archaeological, historic, and
cultural sites shall be preserved and protected;
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(3)
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Land use and redevelopment activities
within the district shall be coordinated with and, to the extent possible,
complement existing state and county policies, plans, and programs affecting
the district;
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(4)
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Public facilities within the district
shall be planned, located, and developed so as to support their development
policies for the district established by this chapter and plans and rules
adopted pursuant to this chapter;
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(5)
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The design and siting of buildings
shall consider the impacts of climate change, sea level rise, inundation risk,
and climate-resilient development; and
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(6)
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Development shall consider the
inclusion of mobility solutions.
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(b)
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The authority may engage in planning,
design, and construction activities within and outside the district; provided
that activities outside the district relate to infrastructure development,
area-wide drainage improvements, roadway realignments and improvements,
business and industrial relocation, and any other activities the authority
deems necessary to carry out redevelopment of the district and implement this
chapter.
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Studies or coordinating
activities may be undertaken by the authority in conjunction with the county
and appropriate state agencies and may address, without limitation, facility
systems, industrial relocation, and other activities.
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�206E-
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Financial aid from the federal
government; contracts with the federal government.
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(a)
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The authority may secure financial aid from
the federal government for any planning, design, development, construction, and
maintenance work that the authority is authorized to undertake pursuant to this
part.
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(b)
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In
addition, and supplemental to the powers granted to the authority under section
206E-4, the authority may:
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(1)
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Borrow moneys or accept grants from the
federal government in aid of or for any development project the authority is
authorized to undertake pursuant to this part;
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(2)
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Issue bonds or other evidence of
indebtedness and pledge revenues and other assets as security for indebtedness
incurred pursuant to this part;
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(3)
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Repay any indebtedness, including any
interest incurred thereon by the authority pursuant to this part;
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(4)
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Procure insurance or loan guarantees
from the federal government for the payment of any debts or parts thereof
secured by mortgages made or held by the authority;
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(5)
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Execute contracts with the federal
government in accordance with this part; and
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(6)
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Comply with terms and conditions
required by the federal government in any contract or grant for federal
assistance.
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(c)
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It is the purpose and intent of this section
to authorize the authority to do all things necessary to secure the cooperation
of and financial aid from the federal government for any planning, design,
development, construction, and maintenance work that the authority is
authorized to undertake pursuant to this part.
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�206E-
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Additional powers.
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In addition, and supplemental to the
powers granted to the authority by law, the authority may establish a district
improvement and maintenance program to establish a mechanism to improve and
maintain the district and do all things necessary to effectuate the
establishment and operation of the district improvement and maintenance
program, including but not limited to determining and assessing a service or
regulatory fee in accordance with applicable law.
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The authority may also adopt rules pursuant to
chapter 91 to implement the program.
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�206E-
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Banyan Drive community development district
special fund.
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(a)
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There is established in the state treasury the
Banyan Drive community development district special fund into which shall be
deposited:
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(1)
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All revenues, income, and receipts of
the authority for the district, notwithstanding any other law to the contrary,
including section 206E-16; provided that revenues, income, and receipts derived
from leases are paid to the agency that owns or manages the property;
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(2)
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Moneys directed, allocated, or
disbursed to the district from government agencies or private individuals or
organizations, including grants, gifts, awards, donations, and moneys collected
from the district improvement and maintenance program, for costs to administer
and operate the district; and
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(3)
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Moneys appropriated to the fund by the
legislature.
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(b)
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Moneys in the fund shall be used only for the
purposes of this part.
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(c)
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Investment earnings credited to the assets of
the fund shall become assets of the fund."
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SECTION
2
.
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Section 206E-3,
Hawaii Revised Statutes, is amended by amending subsection (b) to read as
follows:
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"
(b)
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The
authority shall consist of
the director of finance or the director's
designee; the director of transportation or the director's designee; the
director of business, economic development, and tourism or the director's
designee; the chairperson of the board of land and natural resources; the
director of planning or planning and permitting of each county in which a
community development district is located or the director's designee;
the
chairperson of the Banyan Drive redevelopment agency;
a cultural
specialist; an at‑large member nominated by the president of the senate;
an at‑large member nominated by the speaker of the house of
representatives; two representatives of the Heeia community development
district, comprising one resident of that district or the Koolaupoko district,
which consists of sections 1 through 9 of zone 4 of the first tax map key
division, and one owner of a small business or one officer or director of a
nonprofit organization in the Heeia community development district or
Koolaupoko district; two representatives of the Kalaeloa community development
district, comprising one resident of the Ewa zone (zone 9, sections 1 through
2) or the Waianae zone (zone 8, sections 1 through 9) of the first tax map key
division, and one owner of a small business or one officer or director of a
nonprofit organization in the Ewa or Waianae zone; two representatives of the
Kakaako community development district, comprising one resident of the district
and one owner of a small business or one officer or director of a nonprofit
organization in the district; two representatives of the Pulehunui community
development district, consisting of one resident of the island of Maui, and one
owner of a small business or one officer or director of a nonprofit
organization on the island of Maui; [
and,
]
two representatives of the
Banyan Drive community development district, consisting of one resident of the
Waiakea ahupuaa (zone 2, sections 1, 2, or 4 of the third tax map key division),
and one owner of a small business or an officer or director of a nonprofit
organization located in the town of Hilo (zone 2, sections 1 through 5 of the
third tax map key division); and
for the purposes of part X of this chapter
only, two experts on transit-oriented development, to be appointed one each by
the president of the senate and the speaker of the house of representatives;
and the following ex officio, nonvoting members:
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the chairpersons of the respective senate and
house of representatives standing committees having jurisdiction over
transportation, and the chairpersons of the respective senate and house of
representatives standing committees having jurisdiction over housing.
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All
members except the director of finance; director of transportation; county
directors of planning or planning and permitting; director of business,
economic development, and tourism; chairperson of the board of land and natural
resources;
the
two experts on transit-oriented
development appointed by the president of the senate and speaker of the house
of representatives, respectively; the chairpersons of the respective senate and
house of representatives standing committees having jurisdiction over transportation;
the chairpersons of the respective senate and house of representatives standing
committees having jurisdiction over housing; or, where relevant, their
respective designees
; and the chairperson of the Banyan Drive redevelopment agency,
shall be appointed by the governor pursuant to section 26-34.
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The two at-large members nominated by the
president of the senate and speaker of the house of representatives shall each
be invited to serve and appointed by the governor from a list of three nominees
submitted for each position by the nominating authority specified in this
subsection.
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The
president of the senate and the speaker of the house of representatives shall
each submit a list of six nominees for each district to the governor to fill
the two district representative positions for each community development
district.
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For each community development
district, the governor shall appoint one member from a list of nominees
submitted by the president of the senate and one member from a list of nominees
submitted by the speaker of the house of representatives, and of the two
appointees, one shall meet the district residency requirement and one shall
meet the district small business owner or nonprofit organization officer or
director requirement.
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The
president of the senate and the speaker of the house of representatives shall
each appoint a member having expertise and experience in urban planning and
community development to fill the two positions designated for experts on
transit-oriented development.
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The
authority shall be organized and shall exercise jurisdiction as follows:
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(1)
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For matters affecting the Heeia
community development district, the following members shall be considered in
determining quorum and majority and shall be eligible to vote:
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(A)
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The director of finance or the
director's designee;
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(B)
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The director of transportation or the
director's designee;
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(C)
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The director of business, economic
development, and tourism or the director's designee;
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(D)
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The director of planning and permitting
for the county in which the Heeia community development district is located or
the director's designee;
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(E)
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The cultural specialist;
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(F)
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The two at-large members; and
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(G)
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The two representatives of the Heeia
community development district;
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(2)
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For matters affecting the Kalaeloa
community development district, the following members shall be considered in
determining quorum and majority and shall be eligible to vote:
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(A)
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The director of finance or the
director's designee;
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(B)
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The director of transportation or the
director's designee;
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(C)
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The director of business, economic
development, and tourism or the director's designee;
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(D)
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The director of planning and permitting
for the county in which the Kalaeloa community development district is located
or the director's designee;
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(E)
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The cultural specialist;
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(F)
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The two at-large members; and
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(G)
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The two representatives of the Kalaeloa
community development district;
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(3)
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For matters affecting the Kakaako
community development district, the following members shall be considered in
determining quorum and majority and shall be eligible to vote:
���������
(A)
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The director of finance or the
director's designee;
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(B)
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The director of transportation or the
director's designee;
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(C)
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The director of business, economic
development, and tourism or the director's designee;
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(D)
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The director of planning and permitting
for the county in which the Kakaako community development district is located
or the director's designee;
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(E)
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The cultural specialist;
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(F)
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The two at-large members; and
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(G)
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The two representatives of the Kakaako
community development district;
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(4)
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For matters affecting the Pulehunui
community development district, the following members shall be considered in
determining quorum and majority and shall be eligible to vote:
���������
(A)
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The director of finance or the
director's designee;
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(B)
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The director of transportation or the
director's designee;
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(C)
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The director of business, economic
development, and tourism or the director's designee;
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(D)
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The director of planning for the county
in which the Pulehunui community development district is located or the
director's designee;
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(E)
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The chairperson of the board of land and
natural resources or the chairperson's designee;
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(F)
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The cultural specialist;
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(G)
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The two at-large members; and
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(H)
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The two representatives of the
Pulehunui community development district; [
and
]
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(5)
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For matters affecting part X of this
chapter only, the following members shall be considered in determining quorum
and majority and shall be eligible to vote:
���������
(A)
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The director of finance or the
director's designee;
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(B)
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The director of transportation or the
director's designee;
���������
(C)
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The director of business, economic
development, and tourism or the director's designee;
���������
(D)
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The chairperson of the board of land
and natural resources or the chairperson's designee;
���������
(E)
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The director of planning for the county
in which the program area is located or the director's designee;
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(F)
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The cultural specialist;
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(G)
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The two at-large members; and
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(H)
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The two experts on transit-oriented
development appointed by the president of the senate and the speaker of the
house of representatives[
.
]
; and
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(6)
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For matters affecting the Banyan
Drive community development district, the following members shall be considered
in determining quorum and majority and shall be eligible to vote:
���������
(A)
�
The director of business, economic
development, and tourism or the director's designee;
���������
(B)
�
The director of finance or the
director's designee;
���������
(C)
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The chairperson of the board of land
and natural resources or the chairperson's designee;
���������
(D)
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The director of transportation or
the director's designee;
���������
(E)
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The director of planning for the
county in which the Banyan Drive community development district is located or
the director's designee;
���������
(F)
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The chairperson of the Banyan Drive
redevelopment agency;
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(G)
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The cultural specialist;
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(H)
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The two at-large members; and
���������
(I)
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The two representatives of the
Banyan Drive community development district;
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provided
that for all matters involving the appointment or termination of the
chairperson of the Banyan Drive Hawaii redevelopment agency, the member under
subparagraph (F) shall not be considered a member.
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[
In the event of
]
If
a vacancy[
,
]
occurs,
a member shall be appointed to fill the
vacancy in the same manner as the original appointment within thirty days of
the vacancy or within ten days of the senate's rejection of a previous
appointment, as applicable.
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The
terms of the director of finance; director of transportation; county directors
of planning and permitting; director of business, economic development, and
tourism; [
and
]
chairperson of the board of land and natural
resources;
or their respective designees
;
and the chairperson of the Banyan Drive redevelopment agency,
shall run
concurrently with each official's term of office.
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The terms of the appointed voting members
shall be for four years, commencing on July 1 and expiring on June 30.
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The governor shall provide for staggered
terms of the initially appointed voting members so that the initial terms of
four members selected by lot shall be for two years, the initial terms of four
members selected by lot shall be for three years, and the initial terms of the
remaining three members shall be for four years.
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The terms on the authority of the
chairpersons of the senate and house of representatives standing committees
having jurisdiction over housing and the chairpersons of the senate and house
of representatives standing committees having jurisdiction over transportation
shall run concurrently with that respective legislator's term as the
chairperson of that respective committee.
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The
governor may remove or suspend for cause any member after due notice and public
hearing.
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Notwithstanding
section 92-15, a majority of all eligible voting members as specified in this
subsection shall constitute a quorum to do business, and the concurrence of a
majority of all eligible voting members as specified in this subsection shall
be necessary to make any action of the authority valid.
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All members shall continue in office until
their respective successors have been appointed and qualified.
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Except as herein provided, no member
appointed under this subsection shall be an officer or employee of the State or
its political subdivisions.
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For purposes of this section, "small
business" means a business that is independently owned and that is not
dominant in its field of operation.
"
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SECTION 3.
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There is appropriated out of the general revenues of the State of Hawaii
the sum of $2,000,000 or so much thereof as may be necessary for fiscal year
2026-2027 for the Hawaii community development authority to implement this Act
and to:
����
(1)
�
Adopt
rules under chapter 91, Hawaii Revised Statutes, for purposes of this Act; and
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(2)
�
Prepare
an environmental assessment or environmental impact statement under chapter
343, Hawaii Revised Statutes, for any property within the Banyan Drive
community development district.
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The sum appropriated shall be expended by
the Hawaii community development authority for the purposes of this Act.
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SECTION 4.
�
There is appropriated out of the general revenues of the State of Hawaii
the sum of $
��������
�
�
or so
much thereof as may be necessary for fiscal year 2026-2027 for deposit into the
Banyan Drive community development district special fund.
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SECTION 5.
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There is appropriated out of the Banyan Drive community development
district special fund the sum of $
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or
so much thereof as may be necessary for fiscal year 2026-2027 for the
establishment of one full-time equivalent (1.0 FTE) position within the Hawaii
community development authority.
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The sum appropriated shall be expended the
Hawaii community development authority for the purposes of this Act.
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SECTION 6.
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This Act shall be liberally construed in order to accomplish the
purposes set forth herein.
�
If any
provision of this Act, or the application thereof to any person or circumstance
is held invalid, the invalidity does not affect other provisions or
applications of the Act that can be given effect without the invalid provision
or application, and to this end the provisions of this Act are severable.
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SECTION 7.
�
Statutory material to be repealed is bracketed and stricken.
�
New statutory material is underscored.
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SECTION 8.
�
This Act shall take effect on July 1, 2026.
INTRODUCED BY:
_____________________________
Report Title:
Banyan
Drive; Establishment of the Banyan Drive Community Development District; HCDA;
Special Fund.
Description:
Establishes
the Banyan Drive Community Development District and the Banyan Drive Community
Development District Special Fund.
�
Specifies
the powers and duties of the Hawaii Community Development Authority as it
relates to the new development district.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.