RELATING TO COMMUNITY DISTRICTS.

SB1103

THE SENATE

S.B. NO.

1103

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to community districts
.

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

PART I

����
SECTION
1.
�
Chapter 206E, Hawaii Revised
Statutes, is amended by adding a new part to be appropriately designated and to
read as follows:

"
Part
.

COMMUNITY
DISTRICTS

Established
BY CONCURRENT RESOLUTION

����
�2
06E-A

�
Definitions.
�
As used in this part, unless the context otherwise
requires:

����
"Board"
means the applicable community district board.

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"District"
means the applicable community district.

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"Fund"
means the applicable community special fund.

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�2
06E-B
�
Establishment of community districts
by concurrent resolution.
�
(a)
�
Subject to this part, the legislature may
establish community districts by concurrent resolution.

����
(b)
�

The concurrent resolution shall:

����
(1)
�
Designate
the name of the community district;

����
(2)
�
Clearly
designate the boundaries of the community district through tax may key numbers,
streets, waterways, or other existing boundaries; and

����
(3)
�
Establish
a date upon which the community district shall be terminated.

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�206E-C
�
Community district board; established;
members; terms.
�
(a)
�
Each community district that is established
under this part shall be:

����
(1)
�
Placed
under the authority and within the department of business, economic
development, and tourism for administrative purposes; and

����
(2)
�
Governed
by a board of nine members who shall be residents of the district.

����
(b)
�
The board shall have the powers and
responsibilities that would otherwise be assigned to the authority under
section 206E-4, except powers and responsibilities that bear no relation to the
district.

����
(c)
�
The board shall carry out the duties and
responsibilities as set forth in this part.

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(d)
�
Pursuant to section 92-15, a majority of all
members of the board shall constitute a quorum to do business, and the
concurrence of a majority of all board members shall be necessary to make any
action of the board valid.

����
(e)
�
The nine members of the board shall be
elected under applicable law.
�
The term
of office of each member shall begin
on the day of the election held in
conjunction with the general election of the year in which they are elected and
ending on the day of the election held in conjunction with the following
general election
.

����
(f)
�
The board may establish one or more advisory
groups, consisting of individuals who are not board members, to advise the
board on matters related to this part.

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�2
06E-D
�
State lands
within community districts.
�
(a)
�
After planning for the district is completed,
the board shall determine what state-owned lands, if any, shall be transferred
to the Hawaii community development authority; provided that lands under the
jurisdiction of the department of Hawaiian home lands shall not be transferred.
�

����
(b)
�

No later than three calendar years prior to the established termination
date of the district, the board, the Hawaii community development authority,
and any other relevant state agency shall execute a memorandum of agreement
specifying:

����
(1)
�
The
manner in which the state-owned lands that were transferred to the Hawaii
community development authority under subsection (a) shall be disposed;
provided that the disposition shall be effective on the termination date of the
district;

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(2)
�
Any
responsibilities of the Hawaii community development authority after the
termination date of the district;

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(3)
�
Any
responsibilities of the agency to which the land is disposed after the
termination date of the district; and

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(4)
�
Any
other matters deemed relevant by the parties.

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�206E-E
�
Board; Hawaii community development
authority; relationship.
�
(a)
�
Except as provided in this section, the board
shall have sole jurisdiction over the district.
�

The authority shall not have jurisdiction over the district except:

����
(1)
�
To
the extent that the board is administratively placed under the authority; and

����
(2)
�
As
provided in this section.

����
(b)
�
Employees necessary to carry out the purposes
of this part may be employed or retained by the authority.

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(c)
�
Existing employees of the authority may carry
out tasks necessary to carry out the purposes of this part.

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(d)
�
The authority and the board may enter into a
memorandum of agreement to clarify the roles, relationship, and
responsibilities of the authority and the board with regard to the district.

����
(e)
�
The board may delegate any tasks or duties to
the authority as necessary to carry out the purposes of this part.

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(f)
�
To the extent applicable, the board shall
follow the administrative procedures set forth in part I with respect to public
notice and hearings.

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�2
06E-F
�
Community
plan.
�

The board shall create and implement, as expeditiously as possible, a
community plan for improving the district, in coordination with all
stakeholders, including the applicable county, residents, landowners,
charitable organizations, and businesses.
�

The board shall review and may consider all relevant past plans and
strategies, and shall be the master coordinator of all federal, state, and
county agencies for recovery within the district.
�
To the extent applicable, the board shall
follow the administrative procedures set forth in section 206E-5.

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�2
06E-G
�
Community
district; guidance policies.
�
(a)
�
Each
member of the board shall have a duty to the district to adopt policies that:

����
(1)
�
R
eflect the values, aspirations, and goals of district
residents;

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(2)
�
Increase the number of affordable homes;

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(3)
�
Encourage a thriving, sustainable business sector
that includes tourism;

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(4)
�
Restore or increase community assets,
including schools, parks, gathering places, and ocean-based recreation;

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(5)
�
Require c
onstruction in accordance with fire prevention
strategies;

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(6)
�
Prioritize alternative means of mobility,
including pathways, bikeways, public transportation, and other strategies that
reduce the dependence on private vehicles and provide redundant travel routes;

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(7)
�
Address the threat of sea level rise
and other climate change impacts through appropriate mitigation strategies,
including shoreline setbacks and underground utility placement;

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(8)
�
Preserve m
ajor public view planes, view corridors, and
landmarks through necessary regulation and design review;

����
(9)
�
Comply and are
consistent with c
ounty plans and
zoning, as reflected in any relevant county plan and historic district, as
amended;

���
(10)
�
Encourage construction of residential units in desirable
locations and of the type and cost accessible to the majority of residents;

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(11)
�
Support p
ublic facilities that are planned, located, and
upgraded to support rebuilding plans and policies for the district;

���
(12)
�
Restore and preserve cultural practices,
educational assets, and natural resources; and

���
(13)
�
When constructing public rights-of-way, give consideration
to establishing public street names that are in the Hawaiian language and
relate to the area's history, geography, and culture.

����
(b)
�
Any policy of the board relating to a s
pecial management area shall allow the special
management area permit administration for the district to remain under the
authority of the applicable county.

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�2
06E-H
�
Board;
powers.
�
Except as otherwise limited by this part the
board may:

����
(1)
�
Establish and administer programs for
purposes of this part;

����
(2)
�
Make and execute contracts and all
other instruments necessary or convenient for the exercise of its powers and
functions under this part;

����
(3)
�
Prepare or cause to be prepared a
community plan for the district;

����
(4)
�
Acquire, reacquire, or contract to
acquire or reacquire, by grant or purchase, real, personal, or mixed property,
or any interest therein, and own, hold, clear, improve, rehabilitate, sell,
assign, exchange, transfer, convey, lease, or otherwise dispose of or encumber
the same;

����
(5)
�
Acquire or reacquire by condemnation
real, personal, or mixed property, or any interest therein, for purposes of
this part;

����
(6)
�
By itself or in partnership with
qualified persons acquire, reacquire, construct, reconstruct, rehabilitate,
improve, alter, or repair or provide for the construction, reconstruction,
improvement, alteration, or repair of any improvement and own, hold, sell,
assign, transfer, convey, exchange, lease, or otherwise dispose of or encumber
any improvement;

����
(7)
�
Arrange or contract for the planning,
replanning, opening, grading, or closing of streets, roads, roadways, alleys,
or other places, or the furnishing of facilities, or for the acquisition of
property or property rights, or for the furnishing of property or services in
connection with any project;

����
(8)
�
Prepare or cause to be prepared plans,
specifications, designs, and estimates of costs for the construction,
reconstruction, rehabilitation, improvement, alteration, or repair of any
improvement project, and modify the plans, specifications, designs, or estimates
of any project;

����
(9)
�
Provide or obtain advisory,
consultative, training, and educational services, technical assistance, and
advice to or from any person, partnership, or corporation, either public or
private, to carry out the purposes of this part, and engage the services of
consultants on a contractual basis for rendering professional and technical
assistance and advice;

���
(10)
�
Procure insurance against any loss in
connection with its property and other assets and operations in amounts and
from insurers as it deems desirable;

���
(11)
�
Contract for and accept gifts or grants
in any form from any public agency or from any other source;

���
(12)
�
Delegate any tasks and duties to the
authority necessary to carry out the purposes of this part;

���
(13)
�
Enter into memoranda of agreement with
governmental agencies and private parties as necessary to carry out this part;

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(14)
�
Exercise the power of eminent domain to acquire necessary
property interests; provided that the exercise of eminent domain shall only be
undertaken to achieve the community master plan
; and

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(15)
�
Take any and all actions necessary to
carry out its purposes and exercise the powers given and granted under this
part.

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�2
06E-I

�
Assessment
for operating costs.
�
(a)
�

The board may assess all land users, except the federal government, for
their fair share of the costs required to administer and operate the district,
which may include costs associated with staffing.
�
Assessments shall be based on each land
user's proportionate share of the total acreage of the district of the land
used versus the total acreage of the district.
�

No land user assessment as provided in this part shall constitute a tax
on real property within the meanings of any constitutional or statutory
provision.

����
(b)
�
The assessment shall be set by the board
every six years.
�
The assessments shall
be paid to the board in semiannual payments commencing thirty days after the
beginning of the fiscal year and shall be deposited into the fund.

����
(c)
�
The board may charge interest or other fees
on assessment amounts not paid on a timely basis and may withhold services or
approval of governmental permits for land users delinquent in payments.

����
(d)
�
For the purposes of this section, "land
user" includes the owner of land; provided that the landowner may assign
the responsibility for payment of assessments to the lessee or licensee of the
land.

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�2
06E-J

�
Financial
aid from the federal government; contracts with the federal government.
�
(a)
�

The
board

may secure financial aid from the federal government for any planning, design,
building, construction, and maintenance work under this part.

����
(b)
�
The board may:

����
(1)
�
Borrow moneys or accept grants from the
federal government in aid of or for any construction project under this part;

����
(2)
�
Issue bonds or other evidence of
indebtedness and pledge revenues and other assets as security for indebtedness
incurred under this part;

����
(3)
�
Repay any indebtedness, including any
interest incurred thereon by the
board
under this part;

����
(4)
�
Procure insurance or loan guarantees
from the federal government for the payment of any debts or parts thereof
secured by mortgages made by or held by the
board
;

����
(5)
�
Execute contracts with the federal
government in accordance with this part; and

����
(6)
�
Comply with terms and conditions
required by the federal government in any contract or grant for federal
assistance.

����
(c)
�
It is the purpose and intent of this section
to authorize the
board
to do all things
necessary to secure the cooperation of and financial aid from the federal
government for any planning, design, building, construction, and maintenance work
under this part.

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�2
06E-K
�
C
ommunity
district special fund.
�
(a)
�
The
director of finance shall establish a special fund in the state treasury for
each community district established under this part, into which shall be
deposited:

����
(1)
�
All revenues, income, and receipts of the
board

for the district, notwithstanding
any other law to the contrary, including section 206E-16;

����
(2)
�
Moneys directed, allocated, or disbursed to the
district from government agencies or private individuals or organizations,
including grants, gifts, awards, donations, and assessments of landowners for
costs to administer and operate the district; and

����
(3)
�
Moneys appropriated to the fund by the
legislature.

����
(b)
�
Moneys in the fund shall be used f
or
purposes of this part.

����
(c)
�
Investment earnings credited to the assets of
the fund shall become part of the fund.

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�2
06E-L
�
Annual
comprehensive report.
�
No later than
twenty days prior to the convening of each regular session, the authority shall
submit to the legislature an annual comprehensive report on the progress of
building within the district.

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�2
06E-M
�
Rules.
�
(a)
�

The board has the power to adopt rules under chapter 91 necessary for
the purposes of this part.

����
(b)
�
The board may adopt rules under chapter 91
relating to health, safety, building, planning, zoning, and land use, which,
upon final adoption of a community plan, shall supersede all other inconsistent
ordinances and rules relating to the use, zoning, planning, and development of
land and construction thereon; provided that rules adopted under this
subsection shall follow existing laws, rules, and ordinances, as closely as is
consistent with standards meeting minimum requirements of good design, pleasant
amenities, health, safety, and coordinated development."

PART II

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

"
Chapter

COMMUNITY DISTRICT BOARD MEMBERS

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�
-
1
�
Election of community district board
members.
�
(a)
�
Members of the community district board shall
be elected in conjunction with the general election in every even-numbered year;
provided that the first election shall take place in the election cycle
following the adoption of the concurrent resolution establishing the community
district under section 206E-B.

����
(b)
�
Any person intending to register as a
candidate for the election as a community district board member shall submit to
an examination under oath by the clerk of the county in which the community
district is located.
�
In addition, each
candidate shall make and subscribe to an application in the form of an
affidavit verifying the candidate's qualifications.

����
(c)
�
The chief election officer shall prepare the
nomination papers in a manner that requires a candidate desiring to file for
election to the community district board to specify that the candidate resides
within the community district.

����
(d)
�
The ballot for the election of board members
shall be prepared in a manner that provides each eligible voter residing within
the community district the opportunity to cast a ballot for the candidates
seeking election to the board.
�
Each
ballot shall contain the names of the candidates arranged alphabetically.
�
Each eligible voter shall be entitled to
receive the community district board ballot and to vote for all open seats on
the board.

����
(e)
�
The cost of the election of the board members
shall be borne by the applicable community district special fund established under
206E-K.

����
�
-
2
�
Qualification of voters.
�
No person shall be eligible to vote for the
election of community district board members unless the person is registered to
vote in the State under applicable law and resides within the boundaries of the
community district established by the concurrent resolution under section 206E-B.

����
�
-
3
�
Qualification of voters; registration.
�
(a)
�

The term of office of members of the community district board shall be
two years, beginning on the day of the election held in conjunction with the
general election of the year in which they are elected and ending on the day of
the election held in conjunction with the following general election.

����
(b)
�
Any vacancy that may occur through any cause
other than the expiration of the term of office shall be filled in accordance
with applicable law."

����
SECTION
3.
�
Chapter 17, Hawaii Revised Statutes,
is amended by adding a new section to be appropriately designated and to read
as follows:

����
"
�17-
��

��
Community
district board members.
�
(a)
�

Whenever any vacancy in the membership of the community district board
occurs, the term of which ends at the next succeeding general election, the
vacancy shall be filled by the governor within sixty days after the vacancy
occurs.
�
The person so appointed shall
reside within the community district and shall serve for the duration of the
unexpired term.

����
(b)
�
All appointments made by the
governor under this section shall be made without consideration of the
appointee's political party preference or nonpartisanship.
"

����
SECTION

4
.
�
Section 11-357,
Hawaii Revised Statutes, is amended by amending subsection (a) to read as
follows:

����
"(a)
�
No person shall make contributions to:

����
(1)
�
A candidate seeking nomination or
election to a two‑year office or to a candidate committee in an aggregate
amount greater than $2,000 during an election period;

����
(2)
�
A candidate seeking nomination or
election to a four‑year nonstatewide office or to a candidate committee
in an aggregate amount greater than $4,000 during an election period; [
or
]

����
(3)
�
A candidate seeking nomination or
election to a four‑year statewide office or to a candidate committee in
an aggregate amount greater than $6,000 during an election period[
.
]
;
or

����
(4)
�
A candidate
seeking nomination or election to a
community district board
or
to a candidate committee in an aggregate amount greater than $100 during an
election period
.
"

����
SECTION
5
.
�
Section 12-5, Hawaii Revised Statutes, is
amended by amending subsection (b) to read as follows:

����
"(b)
�

Nomination papers for candidates for either branch of the legislature [
and
for
]
,
county office
, and a community district board
shall be
signed by not less than fifteen registered voters of the district or county or
subdivision thereof for which the person nominated is a candidate."

����
SECTION
6
.
�
Section 12-6, Hawaii Revised Statutes, is
amended by amending subsection (a) and (b) to read as follows:

����
"(a)
�

For members of Congress, state offices, county offices, [
and
] the
board of trustees for the office of Hawaiian affairs,
and a community
district board,
nomination papers shall be filed with the chief election
officer, or clerk in case of county offices, not later than 4:30 p.m. on the
first Tuesday in June.
�
However, in the
event of a special primary or special election, the filing deadline shall be
determined in the proclamation that is issued calling for the election as
provided for by state law or county charter.
�

A state candidate from the counties of Hawaii, Maui, and Kauai may file
the declaration of candidacy with the respective clerk.
�
The clerk shall transmit to the office of the
chief election officer the state candidate's declaration of candidacy without
delay.

����
(b)
�

If after the close of filing there are no candidates who have filed
nomination papers for an elective office for the primary, special primary, or
any special election held in conjunction with the primary election[
,
]
or
the general election,
the chief election officer or clerk, in the case of a
county election, shall accept nomination papers for that office until 4:30 p.m.
on the tenth day after the original close of filing."

PART III

����
SECTION
7.
�
This Act does not affect rights and
duties that matured, penalties that were incurred, and proceedings that were
begun before its effective date.

����
SECTION

8
.
�
Statutory
material to be repealed is bracketed and stricken.
�
New statutory material is underscored.

����
SECTION
9.
�
In codifying the new sections added
by section 1 of this Act, the revisor of statutes shall substitute
appropriate section numbers for the letters used in designating the new
sections in this Act.

����
SECTION
10.
�
This Act shall take effect upon its
approval.

INTRODUCED BY:

_____________________________

Report Title:

Community
District; HCDA; Concurrent Resolution

Description:

Establishes
a process by which the Legislature may establish community districts by
concurrent resolution.
�
Requires the
board members of the community districts to be elected by residents of the
community district.

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