RELATING TO FOREIGN CRITICAL ASSETS.

SB1665

THE SENATE

S.B. NO.

1665

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to foreign critical assets
.

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

����
SECTION 1.
�
The
legislature finds that, among the concerns raised by growing foreign influence
in the United States and Hawaii, protecting critical infrastructure (i.e., as
freshwater systems, electrical grids, and telecommunications networks) is the
most urgent security priority.
�
These
systems are essential to Hawaii's local economy, public safety, and overall
stability, making them prime targets for foreign interference.

����
The legislature further finds that numerous
federal agencies responsible for national security have demonstrated that
foreign governments, including adversarial countries, are actively seeking ways
to access and control United States critical infrastructure, either through
direct investment, partnerships, or covert actions.
�
Such access could allow malicious actors to
disrupt essential services, steal sensitive data, or compromise national
security.
�
Even allied countries, whose
interests and leadership can change rapidly, may inadvertently or intentionally
exploit their involvement in United States infrastructure to advance their own
agendas, often at odds with the interests of the United States and Hawaii.

����
The legislature also finds that the growing
interconnected nature of infrastructure systems heightens their vulnerability,
as disruptions in one sector can cascade across others.
�
A cautious and strategic approach to foreign
investment and influence is therefore critical to safeguarding these assets.
�
By limiting foreign influence and
strengthening oversight of those utilities that control Hawaii's critical
infrastructure systems, the United States can ensure the resilience and
security of its infrastructure against evolving threats, preserving public
trust, guarding national security, and protecting Hawaii's sovereignty.

����
The purpose of this Act is to limit foreign
ownership of the utilities and companies controlling Hawaii's critical
infrastructure.

����
SECTION 2.
�

Chapter 269, Hawaii Revised Statutes, is amended by adding a new part to
be appropriately designated and to read as follows:

"
Part
.
�
FOREIGN
OWNERSHIP OF CRITICAL INFRASTRUCTURE

����
�269-
�
Definitions.
�

As used in this part:

����
"Critical infrastructure" means systems
for freshwater treatment and delivery, the electrical grid, telecommunications
networks, and associated infrastructure necessary to the functioning and
security of those systems.

����
"Owned or controlled" or
"ownership or control" means ownership of a portion of a company, stock,
or other ownership interest in a company, that is equivalent to or greater than:

����
(1)
�
Four
per cent of the company;

����
(2)
�
The
lowest threshold of ownership of the company that allows for a seat on the company's
board of directors; or

����
(3)
�
The
lowest percentage of ownership of the company of a sitting member of the board
of directors, or number of shares that member represents.

����
�269-
�
Protection of critical infrastructure;
foreign ownership or control; limitation.
�

Notwithstanding section 269‑17.5,
no public or private electric utility, water utility, or telecommunications
carrier serving the State or its residents shall be permitted to be owned or
controlled by:

����
(1)
�
Citizens
of a country other than the United States of America; or

����
(2)
�
A
company or another entity, including a government entity, that is:

���������
(A)
�
Not
owned or controlled by citizens of the United States of America;

���������
(B)
�
Not
directly controlled by the government of the United States of America; or

���������
(C)
�
Not
headquartered in the United States of America.

����
�269-
�
Report.
�

Each public or private electric
utility, water utility, or telecommunications carrier serving the State or its
residents shall annually report on any foreign ownership or control that is
equivalent to or greater than:

����
(1)
�
Four
per cent of the company;

����
(2)
�
The
lowest threshold of ownership of the company that allows for a seat on the company's
board of directors; and

����
(3)
�
The
lowest percentage of ownership of the company of a sitting member of the board
of directors, or the number of shares that member represents."

����
SECTION 3.
�

This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Critical
Infrastructure; Foreign Investment; Limitation; Report

Description:

Limits
foreign ownership of certain public and private utilities and companies
controlling the State's critical infrastructure.

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