RELATING TO PROPERTY.

SB1006

THE SENATE

S.B. NO.

1006

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO PROPERTY
.

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 security is vital to the safety of the State.
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The legislature believes that this security
is compromised when foreign actors own land in close proximity to military
installations or lands.

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Accordingly, the purpose of this Act is to prohibit
foreigners from owning lands within ten miles of military installations or
lands.

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SECTION 2.
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The Hawaii Revised Statutes is amended by adding a new chapter to title
11 to be appropriately designated and to read as follows:

"
Chapter

LANDS NEAR MILITARY
INSTALLATIONS OR LANDS;

FOREIGN OWNERSHIP
PROHIBITED

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� -1
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Definitions.
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As used in this chapter, unless the context
otherwise requires:

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"Interest in proximate land"
means all direct interest acquired, transferred, or held in land, including,
without limitation, a lease of proximate land:

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(1)
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For
a term of one year or longer; or

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(2)
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That
is renewable by option for terms that, if exercised, would be for a term of one
year or longer.

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"Prohibited foreign party" means:

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(1)
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Any
natural person who is not a United States citizen; or

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(2)
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Any
business, entity, or organization in which a significant interest or
substantial control is directly or indirectly held or is capable of being
exercised by natural persons who are not United States citizens.

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"Proximate land" means land or
real property located within ten miles of any military or land within Hawaii.

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"Real property" means lands,
structures, and interests therein and natural resources including water,
minerals, and all things connected with land, including lands under water and
riparian rights, space rights, air rights, and any and all other things and
rights usually included within the term.

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"Resident alien" means a person
who:

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(1)
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Is
not a citizen of the United States; and

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(2)
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Is
a resident of a United States state, territory, trusteeship, or protectorate.

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"Significant interest" or
"substantial control" means:

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(1)
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An
interest of thirty-three per cent or more held by a prohibited foreign party;

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(2)
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An
interest of thirty-three per cent or more held by more than one prohibited
foreign party if the parties are acting in concert with respect to the
interest, even if no single prohibited foreign party holds an interest of
thirty-three per cent or more; or

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(3)
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An
interest of fifty per cent or more, in aggregate, held by prohibited foreign
parties, regardless of whether the prohibited foreign parties are acting in
concert.

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� -2
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Office of intelligence; established.
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There
is established within the department of defense an office of intelligence,
which, for the purposes of this chapter, shall:

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(1)
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Collect
and analyze information concerning the unlawful sale or possession of land by
foreign parties; and

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(2)
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Administer
and enforce the provisions of this chapter, including the reporting of
violations to the attorney general as provided in section -5.

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� -3
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Restrictions on ownership of lands in close
proximity to military installations or lands.
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(a)
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Notwithstanding any other law to the contrary, a prohibited foreign
party shall not acquire by grant, purchase, devise, descent, or otherwise, any
interest in proximate land in the State.

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(b)
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A person shall not hold proximate land as an agent, trustee, or other
fiduciary for a prohibited foreign party in violation of this chapter.

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(c)
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A prohibited foreign party that acquires proximate land in violation of
this chapter remains in violation as long as the prohibited foreign party holds
an interest in the land.

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� -4
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Divestment.
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A prohibited foreign party that owns
proximate land shall sell, transfer, or divest an interest it holds in proximate
land no later than
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years of the
effective date of Act
��
, Session Laws of
Hawaii 2025.
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If the prohibited foreign
party fails to do so, the attorney general shall initiate a civil action pursuant
to section
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-5.

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� -5
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Enforcement.
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(a)
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If
the office of intelligence determines a prohibited foreign party has acquired
or is maintaining its interests in proximate land in the State in violation of
this chapter, the office shall report the violation to the attorney general.

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(b)
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Upon receiving a report under subsection (a), the attorney general may investigate
to determine if there is a violation of this chapter.
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In conducting the investigation, the attorney
general may issue subpoenas requiring the:

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(1)
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Appearance
of witnesses;

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(2)
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Production
of relevant records; and

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(3)
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Giving
of relevant testimony.

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(c)
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Following the investigation, if the attorney general concludes that a
violation of this chapter has occurred, the attorney general shall initiate a
civil action in the circuit court in the county in which the proximate land is
located for the forfeiture of the interest in proximate land.

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(d)
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If the circuit court determines that the interest in proximate land is
being held in violation of this chapter, the circuit court shall order that the
interest in proximate land be sold as provided in section -7.

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� -6
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Filings required.
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The attorney general shall promptly record
the following filings with the bureau of conveyances:

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(1)
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Upon
commencement of an action under this chapter, a notice of the pendency of the
action; and

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(2)
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An
order for the sale of proximate land under section
�
-5(d).

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� -7
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Court-ordered sale of proximate land.
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If the court orders the sale of an interest
in proximate land under section
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-5(d),
the proximate land shall be sold subject only to the rights and interests of
bona fide lienholders.
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Proceeds from the
sale, if any, shall be disbursed to lien holders, in the order of priority,
except for liens that, under the terms of the sale, are to remain with the proximate
land.

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� -8
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Penalty.
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A prohibited foreign party that violates this chapter shall be guilty of
a class C felony.

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� -9
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Resident aliens; no affirmative defense.
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It shall not be an affirmative defense to
prosecution under this chapter that a prohibited foreign party is a resident
alien.

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� -10
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Title to land not invalid.
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Title to proximate land is not invalid or
subject to divesture due to a violation of this chapter by any:

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(1)
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Former
owner; or

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(2)
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Other
person holding or owning a former interest in the proximate land.

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� -11
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No duty to inquire.
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No person who is not subject to this chapter
shall be required to determine or inquire whether another person is subject to
this chapter.

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� -12
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Rules.
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The department of the attorney general may adopt rules pursuant to
chapter 91 necessary for the purposes of this chapter."

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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 $ or so
much thereof as may be necessary for fiscal year 2025-2026 and the same sum or
so much thereof as may be necessary for fiscal year 2026-2027 to establish an
office of intelligence, including the establishment of
full-time equivalent ( FTE) positions.

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The sums

appropriated shall be expended by the department of defense for
the purposes of this Act.

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SECTION 4.
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This Act does not affect rights and duties that matured, penalties that
were incurred, and proceedings that were begun before its effective date.

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SECTION 5.
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This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

Real
Property; Proximate lands; AG; Restrictions on Foreign Ownership;
Appropriations

Description:

Prohibits
certain foreign parties from owning, purchasing, or acquiring an interest in lands
located with 10 miles of a military installation or land within the State.
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Establishes an Office of Intelligence within
the Department of Defense to investigate claims that land is unlawfully owned
by a prohibited foreign party.
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Requires
the Attorney General to undertake enforcement activities.
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Appropriates moneys.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.