HB2636

SECTION 1. The legislature finds that the urgent and escalating threats posed by climate change, particularly in the form of coastal erosion, endangers the State's natural resources, public access to its cherished coastlines, and the well-being of its communities. The legislature also finds that the impacts of climate change require innovative and proactive measures to address the challenges of urban sprawl.

To address these challenges innovatively, the legislature finds that the creation of a Hawaii coastal commission, under the supervision of the department of land and natural resources, is essential to developing a shoreline buyback program to begin the process of moving people away from eroding shorelines.

As collaboration in this area is extremely important, the Hawaii coastal commission will comprise thirteen voting members, including representation from state and county governments and public members, which will ensure a balanced and inclusive decision-making process. The Hawaii coastal commission's mission will be to address the immediate impacts of coastal erosion through the establishment of a shoreline buyback program, which will allow the State to acquire residential properties along eroding coastlines up to one hundred per cent of their assessed fair market value. Eligibility for the buyback program will be limited to residents at or below one hundred per cent of the area median income, who have resided in their primary residence for more than five years, and who can demonstrate active erosion affecting their property. And in a pioneering move toward sustainability, it is the intent of the legislature for the State to have the option to operate acquired properties as long-term rental units, and dedicate the revenue generated to sustain and expand the buyback program.

The purpose of this Act is to take steps deemed to be crucial in addressing the challenges posed by climate change, coastal erosion, managed retreat, and it is imperative to foster sustainable long-term housing by establishing the Hawaii coastal commission and creating a shoreline buyback program.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

Hawaii coastal commission

PART I. GENERAL PROVISIONS

§ -1 Definitions. As used in this chapter, unless the context otherwise requires:

"Commission" means the Hawaii coastal commission established under section -11.

"Fair market value" means that amount of money that a purchaser willing, but not obliged, to buy an interest in land would pay an owner willing, but not obliged, to sell it, taking into consideration all uses to which the land is adapted or might in reason be applied.

PART II. HAWAII COASTAL COMMISSION

§ -11 Hawaii coastal commission. (a) There is established a Hawaii coastal commission within the department of land and natural resources for administrative purposes only. Notwithstanding section 26-34 to the contrary, the commission shall consist of thirteen voting members as follows:

(1) Five ex officio members, including:

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

(B) Four members, one from each county council, to be appointed by the respective county councils;

(2) Two members to be appointed by the president of the senate;

(3) Two members to be appointed by the speaker of the house of representatives; and

(4) Four members of the public, one each to be appointed by the respective county councils.

(b) Notwithstanding section 26-34, appointments to the commission shall not be subject to the advice and consent of the senate. All members of the commission shall be residents of the State. The terms of the commissioners shall be for four years; provided that the initial terms for half of the members appointed under subsection (a)(2), (3), and (4) shall be for two years.

(c) The members of the commission shall serve without pay but shall be reimbursed for their actual and necessary expenses, including travel expenses, incurred in carrying out their duties.

§ -12 County coastal commissions. Each county may establish a county coastal commission through ordinance or resolution.

§ -13 Rules. The commission may adopt rules pursuant to chapter 91 to effectuate the purposes of this chapter.

PART III. SHORELINE BUYBACK PROGRAM

§ -21 Shoreline buyback program. There is hereby established within the commission the shoreline buyback program, in which the commission may purchase eligible properties and transfer those eligible properties to the Hawaii housing finance and development corporation for affordable rental housing.

§ -22 Property eligibility. A property shall be eligible under the shoreline buyback program if:

(1) The property is zoned as residential;

(2) The property is located in a special management area, as defined in chapter 205A;

(3) The property owner has an income of no more than one hundred per cent of the area median income;

(4) The property is the property owner's primary residence for at least the five years immediately preceding the date of the application; and

(5) The property is subject to active coastal erosion.

§ -23 Inspection; offer; acceptance. (a) Upon receipt of a complete application, and after any inspection required by the commission, the commission shall make an offer for the eligible property at one hundred per cent of its fair market value as determined by a licensed appraiser.

(b) All eligible properties purchased by the commission under the shoreline buyback program shall be transferred to the Hawaii housing finance and development corporation on the condition that the eligible property shall be used for affordable rental units and all revenues generated from those eligible properties shall be used for the shoreline buyback program."

SECTION 3. 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 2024-2025 for purchasing residential properties through the shoreline buyback program.

The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

SECTION 4. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriation made in this Act is necessary to serve the public interest; and

(2) The appropriation made in this Act meets the needs addressed by this Act.

SECTION 5. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2636
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII