RELATING TO THE REIMBURSEMENT OF DEBT SERVICE ON THE PORTION OF THE TURTLE BAY REIMBURSABLE GENERAL OBLIGATION BONDS FINANCED BY THE LAND CONSERVATION FUND.

SB2013

THE SENATE

S.B. NO.

2013

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO THE REIMBURSEMENT OF DEBT SERVICE ON THE portion of the TURTLE BAY
REIMBURSABLE GENERAL OBLIGATION BONDS FINANCED BY THE LAND CONSERVATION FUND.

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 Act 121, Session Laws of Hawaii 2015 (Act 121), established
the financing mechanism for the board of land and natural resources to acquire,
among other things, a perpetual conservation easement for property at Turtle
Bay on the North Shore of Oahu.
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By
purchasing a conservation easement, the State guaranteed that hundreds of acres
on Oahu's North Shore would remain protected, preserved, and undeveloped in
perpetuity.
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Multiple entities
contributed to the cost of the conservation easement.
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The State provided $35,000,000 through the
issuance of reimbursable general obligation bonds.

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The legislature further finds that Act 121
established the Turtle Bay conservation easement special fund, from which
moneys are expended to pay the debt service on the reimbursable general
obligation bonds.
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Annual revenues to the
Turtle Bay conservation easement special fund primarily consist of $1,500,000
from transient accommodations tax revenues and $1,500,000 transferred from the
land conservation fund.
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However, the
$3,000,000 in annual revenue to the fund is considerably more than the amount
the fund expends for debt service on the reimbursable general obligation bonds.
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Under the current revenues and expenditures, the
Turtle Bay conservation easement special fund will have a surplus of nearly
$15,000,000 when the bonds are fully amortized in 2036.

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The legislature believes that creating a
nearly $15,000,000 surplus is not an efficient use of moneys.
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Instead, more moneys should remain in the land
conservation fund to be used by the legacy land conservation program to acquire
resource value lands under chapter 173A, Hawaii Revised Statutes.
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The current $1,500,000 annual transfer from
the land conservation fund to the Turtle Bay conservation easement special fund
accounts for more than twenty-five per cent of the land conservation fund's expenditures,
leaving about $3,000,000 per year available to fund competitive grants for land
acquisition.
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Given the $5,100,000 annual
cap on conveyance tax revenue paid into the land conservation fund, and the
high demand and importance for acquisition of land having value as a resource
to the State, the annual transfer from the land conservation fund into the
Turtle Bay conservation easement special fund should be reduced by
approximately fifty per cent.
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This will increase
available funding for competitive grant awards for land acquisition, aimed at
ensuring greater protection of lands and resources for current and future
generations; growing a more sustainable and resilient future; and maintaining
sufficient open space and breathing room for residents and visitors, all of
which serve the best interests of the people of Hawaii.
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The increased available funding for the
acquisition of resource value lands will also strengthen the State's portfolio
of high-value, long‑term investments in protecting natural capital.
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The returns on these investments will accelerate
community efforts to strengthen resilience, promote health and wellness, and
continue building and operating new models of economic opportunity.

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The purpose of this Act is to help ensure
adequate future funding for the land conservation fund and the legacy land
conservation program by reducing the land conservation fund's annual obligation
for the Turtle Bay bonds by approximately one‑half.

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SECTION
2
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Section 173A-13, Hawaii Revised Statutes, is
amended by amending subsection (a) to read as follows:

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"(a)
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The board shall be responsible for the reimbursement of debt service on
the Turtle Bay reimbursable general obligation bonds from the land conservation
fund in the
total
amount of [
$1,500,000
]
$24,018,910.
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Beginning July 1, 2026, the amount of this
reimbursement shall be $751,891
per fiscal year until the bonds are fully
amortized."

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SECTION 3.
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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 4.
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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 5.
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This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

Turtle
Bay Reimbursable General Obligation Bonds; Reimbursement

Description:

Reduces
reimbursement of debt service on the Turtle Bay reimbursable general obligation
bonds from the land conservation fund to approximately one-half of the total
repayment amount and reduces, accordingly, the amount due per fiscal year for
the remainder of the bond amortization schedule.

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not legislation or evidence of legislative intent.