RELATING TO THE DEPARTMENT OF HAWAIIAN HOMELANDS.

HB606

HOUSE OF REPRESENTATIVES

H.B. NO.

606

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the department of hawaiian homelands
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION
1.
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The legislature finds that the
department of Hawaiian home lands plays a critical role in addressing the
longstanding housing needs of native Hawaiians through the provision of
residential, agricultural, and pastoral leases as set forth in the Hawaiian
Homes Commission Act, 1920, as amended.

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The
legislature further finds that, while Act 279, Session Laws of Hawaii 2022 (Act
279), marked a historic step forward by allocating $600,000,000 to the
department of Hawaiian home lands to eliminate the waitlist of applicants for
residential, agricultural, or pastoral leases for trust land managed by the
department, the funding addresses only six thousand seventy-five beneficiaries
out of the twenty-nine thousand individuals currently on the waitlist, leaving
tens of thousands still waiting for housing opportunities.
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The estimated cost to fulfill the entire
waitlist is approximately $6,000,000,000 dollars, requiring sustained
legislative action to fulfill the State's trust obligations under the Hawaiian
Homes Commission Act and the Hawaii State Constitution.

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The
legislature recognizes that certain unexpended and unencumbered funds
appropriated through Act 279 were deposited into the Act 279 special fund
established through Act 125, Session Laws of Hawaii 2024 (Act 125), to ensure
that the department of Hawaiian home lands has enough time to expend or
encumber those remaining funds.
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However,
the legislature believes that additional funding for the department of Hawaiian
home lands is necessary to further the goals of Act 279 in eliminating the
department's waitlist.

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The
legislature notes that this Act is introduced in response to an urgent,
community-driven call to action, representing the voices of native Hawaiian
beneficiaries and advocates from across the State.
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Initiated by grassroots organizations,
community leaders, and supporters of native Hawaiian self-determination, this
Act underscores the collective urgency to address the unmet housing needs of
beneficiaries on the department of Hawaiian home lands' waitlist.
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This Act represents the will and
determination of the native Hawaiian community to advocate for the resources
necessary to ensure housing access, economic security, and cultural
revitalization for its people.

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The
legislature recognizes the investment made through this Act will result in
profound benefits for the State, including:

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(1)
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Economic growth: Funding will create jobs,
boost local economies, and foster long-term financial stability for native
Hawaiian families.
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The development of
homestead communities will also spur construction, commerce, and
entrepreneurship, benefitting all residents of Hawaii;

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(2)
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Cultural revitalization: Providing native
Hawaiians with access to ancestral lands strengthens cultural continuity,
enabling the preservation and revitalization of cultural practices, language,
and traditions for future generations;

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(3)
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Public savings: By reducing reliance on social
services and addressing homelessness among native Hawaiians, the funding from
this Act will alleviate the strain on public resources and infrastructure; and

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(4)
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Stronger communities:
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Stable housing promotes family stability,
educational success for keiki, and healthier families, building thriving
communities across the State.

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The
purpose of this Act is to:

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(1)
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Extend the sunset date of the Act 279 special
fund until June 30, 2028;

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(2)
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Deposit funds into and appropriate funds out
of the Act 279 special fund to be used by the department of Hawaiian home lands
to fulfill its fiduciary duties to native Hawaiians as required by the Hawaii
State Constitution, Hawaiian Homes Commission Act, Act 279, and Act 125.

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SECTION
2.
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Act 125, Session Laws of Hawaii 2024,
is amended as follows:

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1.
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By amending subsection (b) of section 2 to
read:

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"(b)
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Moneys in the special fund shall be used by
the department of Hawaiian home lands to fulfill its fiduciary duties to
beneficiaries of this Act
; Act 125, Session Laws of Hawaii 2024;
and Act
279, Session Laws of Hawaii 2022, including:

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(1)
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Developing lots or
units;

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(2)
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Purchasing
available land or units;

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(3)
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Providing funding
for an applicant on the waiting list or a qualified relative of the applicant
similar to the qualified relative of a lessee as referenced in section 208(5)
of the Hawaiian Home Commission Act of 1920, as amended, who does not own a
principal residence to purchase;

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(4)
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Providing a
mortgage or rental subsidy to the applicant on the waiting list for the
applicant's principal residence in the State;

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(5)
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Exploring and
developing opportunities to generate additional revenue from lands the
department controls to fulfill the fiduciary duties required by this section;
and

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(6)
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Other services as
necessary to address the waiting list."

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2.
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By amending section 5 to read:

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"SECTION
5.
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On June 30, [
2026,
]
2028,

the Act 279 special fund shall be abolished and any unexpended and unencumbered
balance as of the close of business on June 30, [
2026,
]
2028,

shall lapse to the general fund on that date."

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3.
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By amending section 8 to read:

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"
SECTION
8.
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This Act shall take effect on
June 29, 2024; provided that:

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(1)
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Section 4 shall
take effect on July 1, 2024; and

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(2)
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Section 2 shall be
repealed on June 30, [
2026.
]
2028.
"

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SECTION
3.
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The department of Hawaiian home lands
shall submit a strategic plan to the legislature no later than December 10,
2025, detailing:

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(1)
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The anticipated number of waitlisted
beneficiaries served through the appropriation made pursuant to section 6 of
this Act;

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(2)
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Infrastructure and land development projects
to be funded by the appropriation made pursuant to section 6 of this Act; and

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(3)
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Recommendations for additional measures to
eliminate the waitlist entirely.

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SECTION 4.
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The department of Hawaiian home lands shall
submit a report to the legislature no later than twenty days prior to the
convening of each regular session, beginning with the regular session of 2026,
that includes:

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(1)
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A detailed accounting of the expenditures from
funds appropriated pursuant to this Act in the previous fiscal year;

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(2)
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Progress on lot development, land acquisition,
and other funded initiatives; and

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(3)
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The number of beneficiaries assisted and
remaining on the waiting list.

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SECTION
5
.
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There
is appropriated out of the general revenues of the State of Hawaii the sum of
$600,000,000 or so much thereof as may be necessary for fiscal year 2025-2026
to be deposited into the Act 279 special fund established pursuant to Act 125,
Session Laws of Hawaii 2024.

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SECTION
6
.
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There
is appropriated out of the Act 279 special fund the sum of $600,000,000 or so
much thereof as may be necessary for fiscal year 2025-2026 for the purposes of
the special fund.

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The sum appropriated shall be expended by
the department of Hawaiian home lands for the purposes of this Act and Act 279,
Session Laws of Hawaii 2022.

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SECTION
7.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.

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SECTION 8.
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This Act shall take effect on July 1, 2025,
and shall be repealed on June 30, 2028.

INTRODUCED BY:

_____________________________

Report Title:

Department
of Hawaiian Home Lands; Act 279 Special Fund; Reports; Appropriation

Description:

Extends
the Act 279 Special Fund to 6/30/2028.
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Deposits funds into the Act 279 Special Fund and appropriates funds out
of the Special Fund for the Department of Hawaiian Homelands to eliminate its
waitlist.
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Requires the Department of
Hawaiian Home Lands to submit a strategic plan detailing the anticipated uses
of the funds appropriated.
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Requires an
annual report.

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