HR162

WHEREAS, the Legislature is vested with the responsibilities of determining state policy and appropriating state funds; and

WHEREAS, to promote transparency, accountability, and the functionality of state government, the Legislature must ensure that appropriated funds are used efficiently, effectively, and in accordance with applicable laws and regulations; and

WHEREAS, pursuant to Act 309, Session Laws of Hawaii 2025, the Auditor has been conducting a management and performance audit of the Statewide Office on Homelessness and Housing Solutions' Kauhale Initiative; and

WHEREAS, the audit, which was required to be completed prior to the start of the Regular Session of 2026, is not expected to be completed until the interim between the 2026 and 2027 Regular Sessions, in part because parties responsible for project management and development have not been forthcoming with requested documents, including receipts and line-item accounts; and

WHEREAS, between January 23, 2023, and January 16, 2026, Governor Josh Green, has issued twenty-one successive emergency proclamations relating to homelessness in Hawaii; and

WHEREAS, under section 127A-13(a)(3), Hawaii Revised Statutes, the Governor's emergency proclamations may suspend specific statutes and administrative rules governing procurement, including portions of Title 9, Hawaii Revised Statutes; historic preservation under chapter 6E, Hawaii Revised Statutes; environmental review under chapter 343, Hawaii Revised Statutes; and state and county land use, zoning, and permitting requirements; and

WHEREAS, the Governor's emergency proclamations have allowed for no‑bid awards of contracts to a single contractor, HomeAid Hawaii, which is not, and has not previously been, registered with the Department of Commerce and Consumer Affairs as a licensed contractor in the State; and

WHEREAS, the emergency temporary housing projects on the island of Maui to house homeless wildfire survivors, specifically Ka Lai Ola in Lahaina, Puuhonua O Nene in Kahului, and Kipuola Kauhale in Kahului, were established under the Governor's emergency proclamations to address homelessness; and

WHEREAS, project costs for the temporary housing project Ka Lai Ola have been estimated at $185,000,000; and Act 309, Session Laws of Hawaii 2025, allocates the sum of $18,575,000 out of the general revenues of the State of Hawaii for fiscal year 2025–2026, and $24,325,000 for fiscal year 2026–2027 for the continued operation of the Kauhale Initiative; and $2,525,000 for fiscal year 2025–2026, and $5,855,000 for fiscal year 2026–2027 for the continued implementation of the Ohana Zones pilot project established under Act 209, Session Laws of Hawaii 2018; and

WHEREAS, chapter 21, Hawaii Revised Statutes, outlines procedures for establishing and administering legislative investigating committees, including procedures for conducting hearings in a fair and impartial manner; and

WHEREAS, section 21‑3, Hawaii Revised Statutes, authorizes the establishment of an investigating committee by a house resolution; now, therefore,

BE IT RESOLVED by the House of Representatives of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, that an investigating committee is established pursuant to chapter 21, Hawaii Revised Statutes, to be known as the "House Investigating Committee on the Kauhale Initiative and Related Housing Projects"; and

BE IT FURTHER RESOLVED that the House Investigating Committee on the Kauhale Initiative and Related Housing Projects may operate during the interim between the 2026 and 2027 Regular Sessions if the Auditor's report required by Act 309, Session Laws of Hawaii 2025:

(1) Alleges mismanagement, violations of procurement rules, or unlawful actions; or

(2) Does not satisfactorily answer questions of performance; and

BE IT FURTHER RESOLVED that the investigating committee shall:

(1) Investigate the Kauhale Initiative, including all projects currently or previously listed by the Statewide Office on Homelessness and Housing Solutions as part of the Kauhale Initiative, as well as Ka Lai Ola, Puuhonua O Nene, and any other projects developed to provide housing or shelter for people experiencing homelessness or at risk of becoming homeless, including housing developed under emergency proclamations declaring homelessness a public health emergency;

(2) Follow up on the Auditor's audit, including by reviewing, as necessary, contracts, financial statements, procurement processes, and comparisons of actual costs incurred with budgeted estimates;

(3) Investigate the licensing status and qualifications of all contractors and subcontractors involved in the projects described in paragraph (1);

(4) Investigate any health and safety concerns related to these projects, including any incidents, accidents, injuries, or deaths that have occurred at project sites;

(5) Investigate the roles and responsibilities of key individuals and entities involved in these projects;

(6) Investigate the allegation that there are no records of complaints filed with the Regulated Industries Complaints Office of the Department of Commerce and Consumer Affairs regarding unlicensed contractors, despite multiple complaints by numerous individuals;

(7) Investigate the responses, or lack thereof, by authorities and managing entities to concerns raised regarding unlicensed contractors, health hazards, and safety violations;

(8) Investigate whether the use of emergency proclamations to exempt projects from building codes, licensing requirements, and other regulations was appropriate and whether adequate safeguards were in place to protect public health and safety;

(9) Investigate whether any laws, regulations, or ethical standards were violated in connection with these projects;

(10) Determine whether fraud, waste, abuse, mismanagement, corruption, or other wrongdoing occurred in connection with these projects;

(11) Examine the recommendations made in the Auditor's report;

(12) Make recommendations for legislative actions, policy changes, administrative reforms, and enforcement actions to prevent similar problems in the future and to improve the operations and management of state agencies, the use of their funds, and related matters; and

(13) Investigate any other matters related to the subject matter of this measure that the investigating committee deems relevant or necessary; and

BE IT FURTHER RESOLVED that the investigating committee shall have every power conferred on an investigating committee by law, including the authority to:

(1) Conduct hearings, take testimony under oath, and compel the production of documents, records, and other evidence;

(2) Issue subpoenas requiring the attendance of witnesses and subpoenas duces tecum requiring the production of books, documents, records, contracts, correspondence, electronic communications, financial records, receipts, invoices, expenditure reports, and any other evidence;

(3) Enter and inspect any state facility, project site, or other location relevant to the investigation;

(4) Administer oaths and affirmations to witnesses at hearings of the investigating committee;

(5) Report or certify instances of contempt, as provided in section 21-14, Hawaii Revised Statutes;

(6) Determine the means by which a record shall be made of its proceedings in which testimony or other evidence is demanded or adduced;

(7) Employ professional, technical, clerical, or other staff, including auditors, forensic accountants, building inspectors, engineers, attorneys, and other experts, as necessary for the proper performance of its duties;

(8) Expend funds appropriated by the Legislature for the investigating committee or, in the interim, funds from the House of Representatives' operating expenses as necessary for the proper performance of its duties;

(9) Provide for the submission, by a witness' own counsel and counsel for another individual or entity about whom the witness has devoted substantial or important portions of the witness' testimony, of written questions to be asked of the witness by the Chair;

(10) Require any government officer or employee to cooperate with the investigating committee, as provided in section 21-16, Hawaii Revised Statutes;

(11) Refer matters to appropriate law enforcement agencies, including the Attorney General, county prosecutors, or federal authorities, if evidence of criminal conduct is uncovered;

(12) Refer matters to appropriate licensing and regulatory agencies, including the Department of Commerce and Consumer Affairs, for enforcement action against any unlicensed contractors or for other regulatory violations;

(13) Coordinate with the Office of the Auditor and request additional audits or investigations as necessary; and

(14) Exercise all other powers specified under chapter 21, Hawaii Revised Statutes, and the Rules of the House of Representatives, with respect to an investigating committee; and

BE IT FURTHER RESOLVED that the investigating committee shall consist of not fewer than five and not more than nine members, including a Chair and Vice Chair, to be appointed by the Speaker of the House of Representatives exclusively from the membership of the House of Representatives; and

BE IT FURTHER RESOLVED that, in appointing members to the investigating committee, the Speaker of the House of Representatives shall consider including members having expertise or experience in areas relevant to the investigation, including finance, accounting, construction, public health, law, or government oversight; and

BE IT FURTHER RESOLVED that the Speaker of the House of Representatives, may refer to the investigating committee specific matters that fall within the scope of the investigating committee's jurisdiction, and the investigating committee shall work in cooperation with the Speaker of the House of Representatives for the purposes stated in this measure; and

BE IT FURTHER RESOLVED that all government officers and employees of state agencies or departments shall cooperate fully with the investigating committee and shall provide in a timely manner all documents, records, and information requested by the committee; and

BE IT FURTHER RESOLVED that any person or entity that fails or refuses to comply with a subpoena or other lawful order of the investigating committee may be subject to proceedings for contempt, as provided in sections 21-14 and 21-15, Hawaii Revised Statutes; and

BE IT FURTHER RESOLVED that the investigating committee shall hold its first organizational meeting within thirty days after the Auditor's report is released to the Legislature if the Auditor's final report:

(1) Alleges mismanagement, violations of procurement rules, or unlawful actions; or

(2) Does not satisfactorily answer questions of performance; and

BE IT FURTHER RESOLVED that the investigating committee shall:

(1) Submit a report of its findings and recommendations, including any proposed legislation, to the House of Representatives no later than twenty days prior to the convening of the 2027 Regular Session, unless more time is needed to complete the investigation as determined by the investigating committee; and

(2) Cease to exist upon the adjournment sine die of the Regular Session of 2027, unless extended by House Resolution; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, Attorney General, Auditor, Director of Commerce and Consumer Affairs, Director of Health, Director of Human Services, members of the Legislature's Good Government Caucus, Mayor of the County of Maui, Chair of the Maui County Council, Coordinator on Homelessness, Executive Director of HomeAid Hawaii, and all other persons and entities the Speaker of the House of Representatives deems appropriate.

	OFFERED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.R. NO.	162
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII