SB3381

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

"Part . LELE COMMUNITY DISTRICT

§206E- Purposes; findings. The legislature finds that the wildfire of August 8, 2023, devastated Lahaina's heritage, economy, and sense of place, and has deeply affected housing, businesses, jobs, and treasured resources. If the area is not rebuilt in a deliberate, coordinated, and expeditious manner, the area may languish in the long term and affect the well-being of the land, the people, and the economy. However, there is an opportunity to rebuild Lahaina by preserving and reintroducing its valued resources in a manner that reflects the values and priorities of its residents and businesses, and addresses future challenges, including climate change and affordable housing.

Accordingly, the purpose of this part is to establish the Lele community district to facilitate the rebuilding of Lahaina.

§206E- Definitions. As used in this part, unless the context otherwise requires:

"District" means the Lele community district.

"Fund" means the Lele community district special fund.

"Wildfire" means the wildfire that affected Lahaina on August 8, 2023.

§206E- District established; boundaries. The Lele community district is hereby established under the authority. The district shall be comprised of the Lahaina moku, which comprises on 29 ahupua'a, as noted in the west Maui community plan, published by the department of planning of the county of Maui in January 2022.

§206E- Community plan. The authority shall create and implement, as expeditiously as possible, a community plan for the rebuilding within the district, in coordination with all stakeholders, including the county of Maui, residents, landowners, charitable organizations, and businesses. The authority shall consider all relevant past plans and strategies, and shall be the master coordinator for recovery within the district.

§206E- Acquisition or purchase of land. The authority may acquire or purchase land within the district for the purposes of this part.

§206E- Lele community district; guidance policies. The following guidance policies shall generally govern the authority's actions in the district:

(1) The authority's actions shall result in a community that:

(A) Reflects the values, aspirations and goals of residents;

(B) Includes a significant number of affordable homes;

(D) Restores community assets, including schools, parks, gathering places, and ocean-based recreation;

(2) Rebuilding shall be in accordance with wildfire prevention strategies;

(3) The provision of new housing, replacing the approximately three thousand units destroyed in the wildfire, shall be a priority, and include the participation of other government agencies, nonprofit organizations, and builders of housing;

(4) The design of all neighborhoods shall include alternative means of mobility, including pathways, bikeways, public transportation, and other strategies that reduce the dependence on private vehicles and provide redundant travel routes;

(5) The threat of sea level rise and other climate change impacts shall be addressed through appropriate mitigation strategies, including shoreline setbacks and underground utility placement;

(6) Major public view planes, view corridors and preservation of landmarks shall be preserved through necessary regulation and design review;

(7) Rebuilding in the district shall be compatible with county plans and zoning, as reflected in any relevant county plan and Lahaina historic district, as amended;

(8) Building in residential areas shall cater to the needs of residents, especially those who lost their homes in the fire, in terms of location, type of housing, and cost;

(9) Public facilities within the district shall be planned, located, and upgraded to support rebuilding plans and policies for the district as established by this chapter;

(10) Restoration of cultural practices, educational assets, and natural resources shall be supported and encouraged;

(11) Special management area permit administration for the district shall continue to be under the authority of the county of Maui; and

(12) When reconstructing public rights-of-way, consideration may be given to giving public streets names that are in the Hawaiian language and relate to the area's history, geography, and culture.

§206E- Assessment for operating costs. (a) The authority shall have the power to assess all land users, except the federal government, for their fair share of the costs required to administer and operate the district, which may include costs associated with staffing. Assessments shall be based on each landowner's proportionate share of the total acreage of the district.

(b) The assessment shall be set by the authority every six years. The assessments shall be paid to the authority in semiannual payments commencing thirty days after the beginning of the fiscal year.

(c) The authority may charge interest or other fees on assessment amounts not paid on a timely basis, and may withhold services or approval of governmental permits for land users delinquent in payments.

(d) For the purposes of this section, "land user" includes the owner of land; provided that the landowner may assign the responsibility for payment of assessments to the lessee or licensee of the land.

§206E- Rent control; district representatives. Notwithstanding any law to the contrary, the nine representatives of the district serving on the authority pursuant to section 206E-3(b) may establish, by resolution, limits on the amount of rent that landlords of properties located within the district may collect from tenants, and related regulations.

§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, building, 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 building 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, building, construction, and maintenance work that the authority is authorized to undertake pursuant to this part.

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

(1) All revenues, income, and receipts of the authority for the district, notwithstanding any other law to the contrary, including section 206E-16;

(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 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 building within the district.

§206E- Rules. The authority shall adopt rules pursuant to chapter 91 necessary for the purposes of this part."

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 established pursuant to this chapter is located or the director's designee; a general 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 nine representatives of the Lele community district, consisting of one resident of west Maui, one owner of a small business or one officer or director of a nonprofit organization on the island of Maui, one district-specific cultural specialist who is knowledgeable in the assets and opportunities within the district, and six individuals with residential or business ties to 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~~] For the Heeia, Kalaeloa, Kakaakao, and Pulehunui community development districts, 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.

For the Lele community district, each of the nine representatives of the district shall be nominated and, by and with the advice and consent of the senate, appointed by the governor pursuant to section 26-34.

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 general 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 general 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 general 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 general 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 Lele community district, the nine representatives of the Lele community district shall be considered in determining quorum and majority and shall be eligible to vote.

[~~In the event of~~] If a vacancy[,] occurs, 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. In accordance with section 9 of article VII, of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in this Act 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 the appropriations made in this Act is necessary to serve the public interest and to meet the needs provided for by this Act.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $100,000,000 or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the Lele community special fund; provided that no funds shall be made available under this Act unless the Hawaii community development authority obtains $100,000,000 in matching funds from the private sector for the purpose for which this sum is appropriated.

SECTION 5. There is appropriated out of the Lele community special fund the sum of $100,000,000 or so much thereof as may be necessary for fiscal year 2024-2025 for the purposes of the Lele community district.

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

SECTION 6. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	3381
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII