RELATING TO HAWAIIAN HOME LANDS.

SB2702

THE SENATE

S.B. NO.

2702

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to HAWAIIAN HOME LANDS
.

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 thousands of qualified native Hawaiian beneficiaries
remain on the department of Hawaiian home lands waitlist for residential,
agricultural, and pastoral leases, in some cases for decades, due in part to
the limited availability of developable land and the high cost and complexity
of land acquisition.

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The legislature further finds that county
real property tax sales regularly result in the disposition of parcels that are
suitable for housing, infrastructure, or community uses, including parcels
located within or adjacent to existing communities where access to roads,
utilities, and public services already exists.
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When these properties are acquired by private bidders or remain idle
following auction, opportunities to expand housing availability for native
Hawaiian beneficiaries are lost.

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The legislature recognizes that enabling
the department of Hawaiian home lands to strategically acquire tax-delinquent
properties through a right of first refusal can be transformational in
accelerating housing production, reducing the number of beneficiaries on the
waitlist, and leveraging existing infrastructure to deliver homes more
efficiently and cost-effectively.

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Accordingly, the purpose of this Act is to:

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(1)
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Establish
a limited right of first refusal for the department of Hawaiian home lands with
respect to county real property tax sales;

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(2)
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Require
advance notice of qualifying properties from the counties to the department of
Hawaiian home lands; and

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(3)
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Amend
the Hawaiian Homes Commission Act, 1920, as amended, to authorize the
conveyance of certain tax-delinquent properties in a manner that advances the
State's trust responsibilities for native Hawaiians.

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SECTION 2.
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The Hawaiian Homes Commission Act, 1920, as
amended, is amended by adding a new section to be appropriately designated and
to read as follows:

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Acquisition of property; delinquent taxes.
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(a)
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The department of Hawaiian
home lands may acquire real property conveyed pursuant to section
46- , Hawaii Revised Statutes, and hold, manage, or designate the
property as Hawaiian home lands.

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(b)
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The department of Hawaiian home
lands may adopt rules pursuant to chapter 91, Hawaii Revised Statutes,
necessary to implement this section.
"

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SECTION 3.
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Chapter 46, Hawaii Revised Statutes, is amended by adding a new section
to be appropriately designated and to read as follows:

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Right
of first refusal; department of Hawaiian home lands.
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(a)
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Notwithstanding any law to the
contrary, before a public auction of any real property for delinquent real
property taxes, each county shall provide written notice to the department of
Hawaiian home lands of any parcel that may be suitable for use consistent with
the Hawaiian Homes Commission Act, 1920, as amended.

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(b)
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The written notice required under subsection
(a) shall be provided no later than sixty days before the scheduled auction
date and shall include, at a minimum:

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(1)
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The
tax map key number;

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(2)
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Property
location and acreage;

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(3)
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Minimum
upset price or amount of delinquent taxes owed; and

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(4)
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Any
known encumbrances or environmental conditions of record.

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(c)
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The department of Hawaiian home lands shall have the right of first
refusal to acquire the property by:

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(1)
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Matching
the highest bid received at public auction; or

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(2)
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Acquiring
the property directly from the county if no bids are received at auction.

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(d)
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The department of Hawaiian home lands shall exercise its right of first
refusal no later than thirty days following the public auction, or within the
time as may be agreed upon by the county and the department.

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(e)
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Any conveyance of property pursuant to this section shall be subject to:

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(1)
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Approval
by the Hawaiian homes commission;

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(2)
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Compliance
with all applicable environmental review laws; and

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(3)
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A
determination by the department of Hawaiian home lands that the acquisition
serves the interests of native Hawaiian beneficiaries.

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(f)
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Nothing in this section shall be construed to:

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(1)
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Require
the department of Hawaiian home lands to acquire real property;

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(2)
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Impair
the authority of a county to conduct real property tax sales; or

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(3)
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Limit
the ability of a county and the department of Hawaiian home lands to enter into
memoranda of agreement or other intergovernmental arrangements for the transfer
of property.
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SECTION 4.
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The provisions of the amendments made by this Act to the Hawaiian Homes
Commission Act, 1920, as amended, are declared to be severable, and if any
section, sentence, clause, or phrase, or the application thereof to any person
or circumstances is held ineffective because there is a requirement of having
the consent of the United States to take effect, then that portion only shall
take effect upon the granting of consent by the United States and effectiveness
of the remainder of these amendments or the application thereof shall not be
affected.

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SECTION 5.
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New statutory material is underscored.

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SECTION 6.
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This Act shall take effect upon its approval; provided that section 2
shall take effect on either the date of the Secretary of the interior's
notification letter to the Congressional Committee Chairmen that the Act meets
none of the criteria in 43 Code of Federal Regulations section 48.20, or on the
date that the United States Congress approval becomes law.

INTRODUCED BY:

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Report Title:

HHCA; DHHL;
Counties; Right of Refusal; Real Property; Delinquent Taxes

Description:

Establishes a limited right of first refusal for the Department
of Hawaiian Home Lands with respect to county real property tax sales.
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Requires advance notice from the counties to
the Department of Hawaiian Home Lands of qualifying properties.
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Amends the Hawaiian Homes Commission Act,
1920, as amended, to authorize the conveyance of certain tax-delinquent
properties.

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