HB2724

SECTION 1. The legislature finds that certain public lands in Kona, on the island of Hawaii, are underutilized. Redeveloping, renovating, or improving these public lands to provide suitable recreational, residential, educational, industrial, governmental, and commercial areas where the public can live, congregate, recreate, attend schools, and shop as part of a thoughtfully integrated experience is in the best interest of the State.

The purpose of this Act is to establish the Kona community development district.

SECTION 2. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . KONA community development district

§206E- Definitions. As used in this part:

"District" means the Kona community development district.

"Fund" means the Kona community development district special fund.

§206E- District established; boundaries. (a) The Kona community development district is hereby established under the authority.

(b) The authority shall serve as the local redevelopment agency for the district.

(1) Properties with the following tax map key numbers: 3‑7-4-008-003, 3-7-4-008-040, 3-7-4-008-041, 3‑7‑4‑008-042, 3-7-4-008-046, 3-7-4-008-050, 3‑7‑4‑008-058, 3-7-4-008-071, 3-7-4-008-072, 3‑7‑4‑008-073, 3-7-4‑008-075, 3-7-4-020-001, 3‑7‑4‑020-002, 3-7-4-020-003, 3-7-4-020-004, 3‑7‑4‑020-005, 3-7-4-020-006, 3-7-4-020-007, 3‑7‑4‑020-016, 3-7-4-020-017, 3-7-4-020-018, 3‑7‑4‑020-019, 3-7-4-020-020, 3-7-4-020-021, 3‑7‑4‑020-023, 3-7-4-020-035, 3-7-4-020-036, 3‑7‑4‑020-037, 3-7-4-021-002, 3-7-4-021-003, 3‑7‑4‑021-004, and 3-7-4-021-005; and

(2) Lands between the properties specified in paragraph (1) that have not been assigned a tax map key number, including roads and lands near roads.

§206E- Development policies. The following development policies shall guide the authority in the district:

(1) Archaeological, historical, and cultural sites shall be preserved and protected in accordance with chapter 6E;

(2) Endangered species of flora and fauna shall be preserved to the extent required by law;

(3) Land use and development activities within the district shall be coordinated with and, to the extent possible, complement existing county and state policies, plans, and programs affecting the district; and

(4) Public facilities within the district shall be planned, located, and developed to support the development policies established by this section and any rule adopted pursuant to this part.

§206E- Financial aid from the federal government; contracts with the federal government. (a) The authority may secure financial aid from the federal government for any planning, design, development, construction, and maintenance work that the authority is authorized to undertake pursuant to this part.

(b) In addition and supplemental to the powers granted to the authority under section 206E-4, the authority may:

(1) Borrow moneys or accept grants from the federal government in aid of or for any development project the authority is authorized to undertake pursuant to this part;

(2) Issue bonds or other evidence of indebtedness and pledge revenues and other assets as security for indebtedness incurred pursuant to this part;

(3) Repay any indebtedness, including any interest incurred thereon by the authority pursuant to this part;

(4) Procure insurance or loan guarantees from the federal government for the payment of any debts or parts thereof secured by mortgages made by or held by the authority;

(5) Execute contracts with the federal government in accordance with this part; and

(6) Comply with terms and conditions required by the federal government in any contract or grant for federal assistance.

(c) It is the purpose and intent of this section to authorize the authority to do all things necessary to secure the cooperation of and financial aid from the federal government for any planning, design, development, construction, and maintenance work that the authority is authorized to undertake pursuant to this part.

§206E- Kona community development district special fund. (a) There is established in the state treasury the Kona community development district special fund, into which shall be deposited:

(1) All revenues, income, and receipts of the authority for the district;

(2) Moneys directed, allocated, or disbursed to the 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 fund shall be used only for the purposes of this part.

§206E- Annual comprehensive report. No later than twenty days prior to the convening of each regular session, the authority shall submit to the legislature an annual comprehensive report on the progress of development within the district."

SECTION 3. 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 Kona community development district, consisting of one resident of Kona, and one owner of a small business or one officer or director of a nonprofit organization in Kona.

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 Kona 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 Kona 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 Kona 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 4. The Hawaii community development authority and the department of corrections and rehabilitation shall:

(1) Pursue grants and loans from the United States Department of Agriculture's Community Facilities Direct Loan and Grant Program to fund the development of a correctional facility or community correctional center within the Kona development district; and

(2) Use the funds obtained pursuant to paragraph (1) to construct a correctional facility or community correctional center within the Kona development district.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2724
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII