RELATING TO THE CONVEYANCE TAX.

SB3031

THE SENATE

S.B. NO.

3031

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the conveyance tax
.

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 dense shoreline development, widespread shoreline
armoring, and the landward migration of the shoreline due to sea level rise
have together accelerated chronic beach loss, undermined public recreation and
cultural practices, and increased the exposure of coastal communities and
public facilities to flooding and other coastal hazards.

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The legislature further finds that these
impacts are acutely important for public shoreline access along beaches
adjoining county beach parks, where shoreline armoring, nonconforming
structures, and other private improvements can narrow or eliminate the sandy
beach fronting public parks and impede public access, recreation, and
traditional and customary practices.

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The legislature finds that existing fiscal
policy and regulatory tools are insufficient to address situations in which
private shoreline properties, through armoring, placement of structures, or
other actions, effectively sacrifice beaches and frustrate the State's coastal
zone management objectives and public trust responsibilities.

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The legislature further finds that the
State currently lacks adequate dedicated funding to plan, implement, and
maintain beach restoration and related coastal resilience projects at the scale
necessary to address ongoing and projected beach loss and associated impacts to
public trust resources, public access, and coastal communities.

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The purpose of this Act is to direct
conveyance tax revenues to support beach restoration, dune and coastal habitat
enhancement, and other eligible beach and shoreline management projects that
advance the State's coastal zone management objectives and public trust
responsibilities.

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SECTION
2
.
�
Section 171-156, Hawaii Revised Statutes, is
amended to read as follows:

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"
[
[
]�171-156[
]
]
�

Beach restoration special fund.
�

(a)
�
There is established in the
state treasury a special fund to be designated as the "beach restoration
special fund" to carry out the purposes of this part.
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The following moneys shall be deposited into
the beach restoration special fund:

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(1)
�
Proceeds
from the lease or development of public coastal lands designated pursuant to a
beach restoration plan, subject to the Hawaiian Homes Commission Act of 1920,
as amended, and section 5(f) of the Admission Act of 1959;

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(2)
�
Proceeds
from the lease of public lands pursuant to this part for an existing seawall or
revetment;

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(3)
�
Fines
collected for unauthorized shoreline structures on state submerged land or
conservation district land;

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(4)
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Appropriations
made by the legislature for deposit into this fund;

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(5)
�
Donations
and contributions made by private individuals or organizations for deposit into
this fund;

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(6)
�
Fees
collected for the processing of applications for coastal and beach erosion
control projects; [
and
]

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(7)
�
Grants
provided by governmental agencies or any other source[
.
]
; and

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(8)
�
Conveyance
tax collected pursuant to section 247-7 with respect to any transfer or
conveyance of real property, or any interest therein, that is located in whole
or in part within the sea level rise exposure area designated by the Hawaii
climate mitigation and adaptation commission or its successor.

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(b)
�

The beach restoration special fund may be used by the department for one
or more of the following purposes:

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(1)
�
Planning,
designing, development, or implementation of beach restoration projects
pursuant to this part; [
and
]

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(2)
�
Providing
grants to the counties, nongovernmental organizations, and the University of
Hawaii for the restoration of beach lands and for research or engineering
studies necessary to support beach restoration projects, subject to this part[
.
]
;
and

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(3)
�
Acquiring
property.
"

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SECTION
3
.
�
Section 247-7, Hawaii Revised Statutes, is
amended to read as follows:

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"
�247-7
�
Disposition of
taxes.
�

All taxes collected under this chapter shall be paid into the state
treasury to the credit of the general fund of the State, to be used and
expended for the purposes for which the general fund was created and exists by
law; provided that of the taxes collected each fiscal year:

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(1)
�
Ten per cent or $5,100,000, whichever is less,
shall be paid into the land conservation fund established pursuant to section
173A-5; [
and
]

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(2)
�
Fifty per cent or $38,000,000, whichever is
less, shall be paid into the rental housing revolving fund established by
section 201H-202[
.
]
; and

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(3)
�
All revenues derived from any transfer or
conveyance of real property, or any interest therein, that is located in whole
or in part within the
sea level rise exposure area
,
as designated by the Hawaii climate change mitigation and adaptation commission
or its successor, shall be paid into the beach restoration special fund
established by section 171-156.
"

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SECTION 4.
�

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 upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Natural
Resource Protection; Coastal Zone Management; Conveyance Tax; Beach Restoration
Special Fund; Property Acquisition

Description:

Requires
that all conveyance tax revenues collected from the conveyance or transfer of
real property located in whole or in part in a sea level rise exposure area be
deposited into the Beach Restoration Special Fund.
�
Allows funds in the Beach Restoration Special
Fund to be used to acquire property.

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