SB3031 SD1

SECTION 1. The legislature finds that dense shoreline development, widespread shoreline armoring, and the landward migration of the shoreline due to sea level rise have together accelerated chronic beach loss, undermined public recreation and cultural practices, and increased the exposure of coastal communities and public facilities to flooding and other coastal hazards.

The legislature further finds that these impacts are acutely important for public shoreline access along beaches adjoining county beach parks, where shoreline armoring, nonconforming structures, and other private improvements can narrow or eliminate the sandy beach fronting public parks and impede public access, recreation, and traditional and customary practices.

The legislature finds that existing fiscal policy and regulatory tools are insufficient to address situations in which private shoreline properties, through armoring, placement of structures, or other actions, effectively sacrifice beaches and frustrate the State's coastal zone management objectives and public trust responsibilities.

The legislature further finds that the State currently lacks adequate dedicated funding to plan, implement, and maintain beach restoration and related coastal resilience projects at the scale necessary to address ongoing and projected beach loss and associated impacts to public trust resources, public access, and coastal communities.

The purpose of this Act is to direct conveyance tax revenues to support beach restoration, dune and coastal habitat enhancement, and other eligible beach and shoreline management projects that advance the State's coastal zone management objectives and public trust responsibilities.

SECTION 2. Section 171-154, Hawaii Revised Statutes, is amended to read as follows:

"[[]§171-154[]] Authority to lease coastal lands. The board, subject to this chapter, may lease public coastal lands under the board's jurisdiction for the purpose of generating revenues to be deposited into the beach preservation and restoration [[]special[]] fund. Any terms and conditions imposed by the board on the lessee shall run with the land and shall be binding on the lessee's heirs, successors, and assigns. The board may seek enforcement of such terms and conditions in any court of appropriate jurisdiction."

SECTION 3. Section 171-155, Hawaii Revised Statutes, is amended to read as follows:

"[[]§171-155[]] Development of public coastal lands. On the lands subject to this part, the board may undertake appropriate development to generate revenues for beach restoration which is consistent with this chapter and chapters 183C and 205A and other applicable laws. These revenues shall be deposited in the beach preservation and restoration [[]special[]] fund. For purposes of this section, "development" includes:

(1) Any building or mining operation;

(2) Any material change in use, intensity of use, or appearance of any structure or land, fast or submerged; or

(3) The division of land into two or more parcels."

SECTION 4. Section 171-156, Hawaii Revised Statutes, is amended to read as follows:

"[[]§171-156[]] Beach preservation and restoration special fund. (a) There is established in the state treasury a special fund to be designated as the "beach preservation and restoration special fund" to carry out the purposes of this part. The following moneys shall be deposited into the beach preservation and restoration special fund:

(1) Proceeds from the lease or development of public coastal lands designated pursuant to a beach restoration plan, subject to the Hawaiian Homes Commission Act of 1920, as amended, and section 5(f) of the Admission Act of 1959;

(2) Proceeds from the lease of public lands pursuant to this part for an existing seawall or revetment;

(3) Fines collected for unauthorized shoreline structures on state submerged land or conservation district land;

(4) Appropriations made by the legislature for deposit into this fund;

(5) Donations and contributions made by private individuals or organizations for deposit into this fund;

(6) Fees collected for the processing of applications for coastal and beach erosion control projects; and

(7) Grants provided by governmental agencies or any other source.

(b) The beach preservation and restoration special fund may be used by the department for one or more of the following purposes:

(1) Planning, designing, development, or implementation of beach restoration projects pursuant to this part; [~~and~~]

(2) Providing grants to the counties, nongovernmental organizations, and the [~~University~~] university of Hawaii for the restoration of beach lands and for research or engineering studies necessary to support beach restoration projects, subject to this part.

(c) There is established a special subaccount of the beach preservation and restoration fund into which shall be deposited moneys derived from the conveyance tax pursuant to section 247-7 with respect to any transfer or conveyance of real property, or any interest therein, that is located in whole or in part within the sea level rise exposure area, as designated by the Hawaii climate change mitigation and adaptation commission or its successor. The special subaccount may only be used by the department to acquire property."

SECTION 5. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

"§247-7 Disposition of taxes. All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that of the taxes collected each fiscal year:

(1) Ten per cent or $5,100,000, whichever is less, shall be paid into the land conservation fund established pursuant to section 173A-5; [~~and~~]

(2) Fifty per cent or $38,000,000, whichever is less, shall be paid into the rental housing revolving fund established by section 201H-202[.]; and

(3) All revenues derived from any transfer or conveyance of real property, or any interest therein, that is located in whole or in part within the sea level rise exposure area, as designated by the Hawaii climate change mitigation and adaptation commission or its successor, shall be paid into the special subaccount of the beach preservation and restoration special fund established by section 171-156."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2050.

THE SENATE	S.B. NO.	3031
THIRTY-THIRD LEGISLATURE, 2026		S.D. 1
STATE OF HAWAII