HB1243 HD1

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

"Part . EAST HAWAII community development district

§206E-A East Hawaii community development district; purpose. The legislature finds that:

(1) There is an area in east Hawaii that is in need of renewal, renovation, or improvement to enhance the economic and social value of the area to the State of Hawaii;

(2) The Banyan drive area contains approximately eighty‑five per cent of the overnight visitor accommodations in east Hawaii;

(3) The Kanoelehua industrial area of east Hawaii is in need of improvement to alleviate conditions, including dilapidation, deterioration, and age;

(4) There has been little incentive for the lessees of the properties in the area to make major investments in improvements to their infrastructure, resulting in the deterioration of the area's infrastructure and facilities; and

(5) The State has a responsibility to ensure that the east Hawaii area does not deteriorate and have a harmful impact on the economy of the east Hawaii community as a whole.

The authority, through the east Hawaii community development district board, shall plan a district where hotel and resort, industrial, commercial, residential, and public uses may coexist compatibly within the same area.

§206E-B East Hawaii community development district; boundaries. The East Hawaii community development district means the area beginning at the intersection of Manono street and Kamehameha avenue, extending south to Piilani street, east from Piilani street to Kalanikoa street to include Hoolulu Park, and west from the intersection of Manono street and Piilani street to tax map key 3-2-2-031-001, inclusive along the coastline to Maile street until its intersection with Kilauea avenue and then to Aupuni street and beyond to include the following tax map keys until intersection with Ponahawai street: 3-2-2-013-003, 3-2-2-012-001, 3-2-2-012-016, 3-2-2-011‑001, and 3-2-2-007-018; extending makai to tax map key 3-2-3-002-016, along the coastline and including tax map key 3-2-2-001-006 until intersection with Lihiwai street; those lands bounded or abutting Lihiwai street, inclusive through Banyan drive until its intersection with Kamehameha avenue; from Kamehameha avenue at its intersection with Kalanianaole avenue and extending east on Kalanianaole avenue to include those abutting lands until tax map key 3-2-1-010-033 on the mauka side of the road and tax map key 3-2-1-011-010 on the makai side of Kalanianaole avenue, to include also any of those lands on Ocean View drive makai of Kalanianaole avenue and the lands mauka on Silva street and Keaa street; the lands within the Hilo airport area managed by the department of land and natural resources; and the lands abutting or bounded by Kanoelehua avenue extending south to Makaala street, then east on Makaala street to Railroad avenue then north on Railroad avenue until Leilani street and east on Leilani street until tax map key 3-2-2-037-144, then west on Leilani street until its intersection with Kanoelehua avenue; and all those lands abutting or bounded by Pohaku street, Kukila street, Halekauila street, and Lanikaula street; on Kanoelehua avenue heading north from Makaala street those lands mauka including those lands on Makaala street, Holumua street, Pookela street, Wiwoole street, and Kawili street; then on Kanoelehua avenue north from Kawili street and Kalanikoa street from Piilani street until they intersect with Kamehameha avenue.

§206E-C East Hawaii community development revolving fund. (a) There is established in the state treasury the east Hawaii community development revolving fund, into which shall be deposited:

(1) Notwithstanding section 206E-16, all revenues, income, and receipts for the east Hawaii community development district;

(2) Moneys directed, allocated, or disbursed to the east Hawaii community development 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 east Hawaii community development revolving fund shall be used solely for the purposes of this part.

(c) All interest accruing from the investment of the moneys in the fund shall be credited to the east Hawaii community development revolving fund."

SECTION 2. Section 206E-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The authority shall consist of the director of finance or the director's designee; the director of transportation or the director's designee; the director of business, economic development, and tourism or the director's designee; the chairperson of the board of land and natural resources; the director of planning or planning and permitting of each county in which a community development district is located or the director's designee; a cultural specialist; an at-large member nominated by the president of the senate; an at‑large member nominated by the speaker of the house of representatives; two representatives of the Heeia community development district, comprising one resident of that district or the Koolaupoko district, which consists of sections 1 through 9 of zone 4 of the first tax map key division, and one owner of a small business or one officer or director of a nonprofit organization in the Heeia community development district or Koolaupoko district; two representatives of the Kalaeloa community development district, comprising one resident of the Ewa zone (zone 9, sections 1 through 2) or the Waianae zone (zone 8, sections 1 through 9) of the first tax map key division, and one owner of a small business or one officer or director of a nonprofit organization in the Ewa or Waianae zone; two representatives of the Kakaako community development district, comprising one resident of the district and one owner of a small business or one officer or director of a nonprofit organization in the district; [~~and~~] two representatives of the Pulehunui community development district, consisting of one resident of the island of Maui, and one owner of a small business or one officer or director of a nonprofit organization on the island of Maui[.]; and two representatives of the east Hawaii community development district, who shall be residents of east Hawaii, one of whom shall be a business owner or a representative of a business in the district.

All members except the director of finance, director of transportation, county directors of planning or planning and permitting, director of business, economic development, and tourism, chairperson of the board of land and natural resources, or their respective designees shall be appointed by the governor pursuant to section 26-34. The two at-large members nominated by the president of the senate and speaker of the house of representatives shall each be invited to serve and appointed by the governor from a list of three nominees submitted for each position by the nominating authority specified in this subsection.

The president of the senate and the speaker of the house of representatives shall each submit a list of six nominees for each district to the governor to fill the two district representative positions for each community development district. For each community development district, the governor shall appoint one member from a list of nominees submitted by the president of the senate and one member from a list of nominees submitted by the speaker of the house of representatives, and of the two appointees, one shall meet the district residency requirement and one shall meet the district small business owner or nonprofit organization officer or director requirement.

The authority shall be organized and shall exercise jurisdiction as follows:

(1) For matters affecting the Heeia community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The director of planning and permitting for the county in which the Heeia community development district is located or the director's designee;

(E) The cultural specialist;

(F) The two at-large members; and

(G) The two representatives of the Heeia community development district;

(2) For matters affecting the Kalaeloa community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The director of planning and permitting for the county in which the Kalaeloa community development district is located or the director's designee;

(E) The cultural specialist;

(F) The two at-large members; and

(G) The two representatives of the Kalaeloa community development district;

(3) For matters affecting the Kakaako community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The director of planning and permitting for the county in which the Kakaako community development district is located or the director's designee;

(E) The cultural specialist;

(F) The two at-large members; and

(G) The two representatives of the Kakaako community development district; [~~and~~]

(4) For matters affecting the Pulehunui community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The director of planning for the county in which the Pulehunui community development district is located or the director's designee;

(E) The chairperson of the board of land and natural resources or the chairperson's designee;

(F) The cultural specialist;

(G) The two at-large members; and

(H) The two representatives of the Pulehunui community development district[.]; and

(5) For matters affecting the east Hawaii community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The director of planning for the county of Hawaii or the director's designee;

(E) The chairperson of the board of land and natural resources or the chairperson's designee;

(F) The cultural specialist;

(G) The two at-large members; and

(H) The two representatives of the East Hawaii community development district.

In the event of a vacancy, a member shall be appointed to fill the vacancy in the same manner as the original appointment within thirty days of the vacancy or within ten days of the senate's rejection of a previous appointment, as applicable.

The terms of the director of finance; director of transportation; county directors of planning and permitting; director of business, economic development, and tourism; and chairperson of the board of land and natural resources; or their respective designees shall run concurrently with each official's term of office. The terms of the appointed voting members shall be for four years, commencing on July 1 and expiring on June 30. The governor shall provide for staggered terms of the initially appointed voting members so that the initial terms of four members selected by lot shall be for two years, the initial terms of four members selected by lot shall be for three years, and the initial terms of the remaining three members shall be for four years.

The governor may remove or suspend for cause any member after due notice and public hearing.

Notwithstanding section 92-15, a majority of all eligible voting members as specified in this subsection shall constitute a quorum to do business, and the concurrence of a majority of all eligible voting members as specified in this subsection shall be necessary to make any action of the authority valid. All members shall continue in office until their respective successors have been appointed and qualified. Except as herein provided, no member appointed under this subsection shall be an officer or employee of the State or its political subdivisions.

For purposes of this section, "small business" means a business that is independently owned and that is not dominant in its field of operation."

SECTION 3. Chapter 171, part X, Hawaii Revised Statutes is repealed.

SECTION 4. Act 149, Session Laws of Hawaii 2018, is amended by amending section 7 to read as follows:

"SECTION 7. This Act shall take effect on July 1, 2018, and shall be repealed on [~~June 30, 2028;~~] July 1, 2023; provided that section 171‑41.6, Hawaii Revised Statutes, shall be reenacted in the form in which it read on June 30, 2018."

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to carry out the purposes of this Act, including the hiring of necessary staff for the east Hawaii community development district.

The sums appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.

SECTION 6. To implement this Act, the department of land and natural resources shall transfer to the Hawaii community development authority the leases for the public lands within the east Hawaii community development district.

SECTION 7. (a) The powers, functions, and duties of the department of land and natural resources relating to the leases in the east Hawaii community development district are transferred to the Hawaii community development authority.

(b) All appropriations, records, deeds, leases, contracts, loans, agreements, permits, or other documents heretofore made, used, acquired, or held by the department of land and natural resources pursuant to the provisions of the Hawaii Revised Statutes, which are reenacted or made applicable to the east Hawaii community development district by this Act shall remain in full force and effect. Effective July 1, 2023, every reference to the department of land and natural resources or the board of land and natural resources shall be construed as a reference to the Hawaii community development authority.

SECTION 8. 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 9. Statutory material to be repealed is bracketed

and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on June 30, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	1243
THIRTY-SECOND LEGISLATURE, 2023		H.D. 1
STATE OF HAWAII