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SB1078
THE SENATE
S.B. NO.
1078
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
relating
to the waiakea community development district
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
����
SECTION 1.
�
Chapter 206E, Hawaii Revised Statutes, is
amended by adding a new part to be appropriately designated and to read as
follows:
"
Part .
�
Waiakea peninsula community development
district
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�206E-
�
Waiakea peninsula community development
district; findings; purpose.
�
The
legislature finds that:
����
(1)
�
The Waiakea
peninsula area in east Hawaii is in need of renewal, renovation, or improvement
to enhance the economic, cultural, and social value of the area to the State;
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(2)
�
The close
proximity of the Waiakea peninsula to the cruise ship terminal and Hilo town
makes the area suitable for revitalization activities that foster community,
promote cultural activities, and support economic sustainability;
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(3)
�
Regaining state
control over lands in the district in the near term is essential and necessary
in revitalizing the area;
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(4)
�
Through the
authority, the area can be revitalized in such a way that hotel, commercial,
public, and cultural uses can coexist;
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(5)
�
Conditions such as
lack of a sense of safety and security in the district, the condition of the
historic banyan trees, lack of landscaping, poor lighting, and poor pedestrian
experience, along with other blight conditions, need to be addressed; and
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(6)
�
Facilities that
support residents and visitors, including recreational, educational, and
entertainment facilities, are needed.
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�206E-
�
Definitions.
�
As used in this part:
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"District" means the Waiakea
peninsula community development district.
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"Fund" means the Waiakea
peninsula community development district special fund.
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�206E-
�
District established; boundaries.
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The Waiakea peninsula community development
district is hereby established.
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The
district shall include all lands makai of the area as follows:
�
the western boundary is the Waialoa river; the
southern boundary begins at the Waialoa river and follows kamehameha avenue to
its intersection with Kalanianaole street and then follows Kalanianaole street to
Banyan way; the eastern boundary is Reeds bay.
�
The district shall also include Moku Ola, also known as Coconut island.
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�206E-
�
Development policies and guidelines.
�
The following development guidance policies
shall generally govern the authority's actions in the district:
����
(1)
�
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)
�
Hawaiian
archaeological, historic, and cultural sites shall be preserved and protected;
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(3)
�
Land use and
redevelopment activities within the district shall be coordinated with and, to
the extent possible, complement existing county and state policies, plans, and
programs affecting the district;
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(4)
�
Public facilities
within the district shall be planned, located, and developed so as to support
the redevelopment 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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Development shall
consider the impacts of climate change, sea level rise, inundation risk, and climate‑resilient
development in the design and siting of buildings;
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(6)
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Development shall
consider the inclusion of mobility solutions; and
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(7)
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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.
�
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-
�
Financial aid from the federal government;
contracts with the federal government.
�
(a)
�
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-
�
Additional powers.
�
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.
�
The authority may also adopt
rules pursuant to chapter 91 to implement the program.
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�206E-
�
Waiakea community development district
special fund.
�
(a)
�
There is established in the state treasury
the Waiakea community development district special fund into which shall be
deposited:
����
(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;
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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
assessments and fees 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
.
�
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; 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; [
and
] 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 Wai
a
kea peninsula community development district, consisting of one
resident of the district or
the Waiakea ahupua
ʻ
a (zone 2, sections 1, 2, or 4 of the
third tax map key division)
, and one owner of a small
business or one officer or director of a nonprofit organization in the district
or
the town of Hilo (zone 2, sections 1
through 5 of the third tax map key division)
.
����
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, or their respective
designees shall be appointed by the governor pursuant to section 26-34.
�
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.
�
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 authority shall be organized and
shall exercise jurisdiction as follows:
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(1)
�
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:
���������
(A)
�
The director of
finance or the director's designee;
���������
(B)
�
The director of
transportation or the director's designee;
���������
(C)
�
The director of
business, economic development, and tourism or the director's designee;
���������
(D)
�
The director of
planning and permitting for the county in which the Heeia community development
district is located or the director's designee;
���������
(E)
�
The
cultural specialist;
���������
(F)
�
The
two at-large members; and
���������
(G)
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The
two representatives of the Heeia community development district;
����
(2)
�
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:
���������
(A)
�
The director of
finance or the director's designee;
���������
(B)
�
The director of
transportation or the director's designee;
���������
(C)
�
The director of
business, economic development, and tourism or the director's designee;
���������
(D)
�
The director of
planning and permitting for the county in which the Kalaeloa community
development district is located or the director's designee;
���������
(E)
�
The
cultural specialist;
���������
(F)
�
The
two at-large members; and
���������
(G)
�
The
two representatives of the Kalaeloa community development district;
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(3)
�
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)
�
The director of
finance or the director's designee;
���������
(B)
�
The director of
transportation or the director's designee;
���������
(C)
�
The director of
business, economic development, and tourism or the director's designee;
���������
(D)
�
The director of
planning and permitting for the county in which the Kakaako community
development district is located or the director's designee;
���������
(E)
�
The
cultural specialist;
���������
(F)
�
The
two at-large members; and
���������
(G)
�
The
two representatives of the Kakaako community development district; [
and
]
����
(4)
�
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)
�
The director of
finance or the director's designee;
���������
(B)
�
The director of
transportation or the director's designee;
���������
(C)
�
The director of
business, economic development, and tourism or the director's designee;
���������
(D)
�
The director of
planning for the county in which the Pulehunui community development district
is located or the director's designee;
���������
(E)
�
The chairperson of the
board of land and natural resources or the chairperson's designee;
���������
(F)
�
The
cultural specialist;
���������
(G)
�
The two at-large
members; and
���������
(H)
�
The two representatives
of the Pulehunui community development district[
.
]
; and
����
(5)
�
For matters
affecting the Waiakea peninsula community development district, the following
members shall be considered in determining quorum and majority and shall be
eligible to vote:
���������
(A)
�
The
director of finance or the director's designee;
���������
(B)
�
The
director of transportation or the director's designee;
���������
(C)
�
The
director of business, economic development, and tourism or the director's
designee;
���������
(D)
�
The
director of planning for the county in which the Waiakea peninsula community
development district is located or the director's designee;
���������
(E)
�
The
cultural specialist;
���������
(F)
�
The
two at-large members; and
���������
(G)
�
The
two representatives of the Waiakea peninsula community development district.
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In the event of a vacancy, 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 shall run concurrently with each official's term of
office.
�
The terms of the appointed
voting members shall be for four years, commencing on July 1 and expiring on
June 30.
�
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.
����
The governor may remove or suspend for cause any
member after due notice and public hearing.
����
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.
�
All members
shall continue in office until their respective successors have been appointed
and qualified.
�
Except as herein provided,
no member appointed under this subsection shall be an officer or employee of
the State or its political subdivisions.
����
For purposes
of this section, "small business" means a business that is
independently owned and that is not dominant in its field of operation.
"
����
SECTION
3.
�
(a)
�
To implement this Act, the department of land and natural resources
shall, subject to the terms and conditions to be agreed upon in the memorandum
of agreement described in subsection (c), transfer to the Hawaii community
development authority title to all lands and existing leases within the Waiakea
community development district established pursuant to this Act that are owned
by the department of land and natural resources, except lands within the
district that have been set aside to the county of Hawaii by the governor
pursuant to section 171-11, Hawaii Revised Statutes, at no cost to the Hawaii
community development authority, by June 30, 2026.
�
Title to any lands or leases that are not
accepted by the Hawaii community development authority pursuant to the
memorandum of agreement described in subsection (c) shall remain with the
department of land and natural resources.
����
(b)
�
Pursuant to section 171-2, Hawaii Revised
Statutes, the land and leases transferred to the Hawaii community development
authority will no longer be classified as public lands.
�
Any proceeds from transferred lands and
leases on the Waiakea peninsula, however, shall remain subject to the public
trust provisions of section 171-18, Hawaii Revised Statutes.
����
(c)
�
The Hawaii community development authority
and department of land and natural resources shall enter into a memorandum of
agreement regarding the transfer of the lands and leases to the authority by
December 31, 2025.
�
The memorandum of
agreement shall provide the Hawaii community development authority with one
hundred twenty calendar days from the effective date of the memorandum of
agreement to review and approve all aspects of the lands and leases, which
shall be referred to as the due diligence period.
�
Within thirty calendar days from the
effective date of the memorandum of agreement, the department of land and
natural resources shall make available to the Hawaii community development
authority all documented information it possesses or to which it has access
relating to the ownership and management of the lands and leases.
�
The Hawaii community development authority
shall have discretion to reject all or some of the lands and leases for any
reason prior to the expiration of the due diligence period.
����
SECTION
4.
�
(a)
�
The jurisdiction, powers, functions, and duties of the department of
land and natural resources relating to the transferred land and leases in the
Waiakea community development district established pursuant to this Act shall
be transferred to and conferred upon the Hawaii community development authority
and shall be performed and enforced in the same manner as previously
authorized, entitled, or obligated for the remainder of the existing lease
terms except as otherwise authorized, directed, or instructed by this Act.
�
As to the leases in the Waiakea community
development district transferred to the Hawaii community development authority,
the authority shall succeed to all of the rights and powers previously
exercised and all of the duties and obligations incurred by the department of
land and natural resources in the exercise of the jurisdiction, powers,
functions, and duties transferred, whether such jurisdiction, powers,
functions, and duties are mentioned in or granted by any law, contract, or
other document.
����
(b)
�
All rules, policies, procedures, guidelines,
and other material adopted or developed by the department of land and natural
resources relating to the existing leases in the Waiakea community development
district shall remain in full force and effect until superseded, amended, or
repealed, pursuant to chapter 91, Hawaii Revised Statutes, by the Hawaii
community development authority except as otherwise authorized, directed, or
instructed by this Act.
�
Effective upon
the completed transfer of the lands and leases, every reference to the
department of land and natural resources or the board of land and natural
resources in those rules, policies, procedures, guidelines, and other material
shall be construed as a reference to the Hawaii community development authority
as applicable.
����
(c)
�
All appropriations to the department of land
and natural resources, records, deeds, leases, contracts, loans, agreements,
permits, or other documents heretofore made, used, acquired, held by, executed
or entered into by or on behalf of the department of land and natural resources
relating to the transferred land or leases in the Waiakea community development
district shall remain in full force and effect until amended.
�
Effective upon the completed transfer of the
lands and leases, every reference to the department of land and natural
resources or the board of land and natural resources in those appropriations,
records, deeds, leases, contracts, loans, agreements, permits, or other
documents relating to the transferred land or leases in the Waiakea community
development district shall be construed as a reference to the Hawaii community
development authority as applicable.
����
SECTION
5.
�
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.
����
SECTION
6.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.
����
SECTION 7.
�
This Act shall take effect on July 1, 2025.
INTRODUCED BY:
_____________________________
Report Title:
Waiakea
Peninsula Community Development District; Establishment; Hawaii Community
Development Authority; Department of Land and Natural Resources
Description:
Establishes
the Waiakea Peninsula Community Development District.
�
Provides for the transfer of land and leases
within the Waiakea Peninsula Community Development District from the Department
of Land and Natural Resources to the Hawaii Community Development Authority.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.