STAND. COM. REP. NO. 471-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2308

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 2308 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAIIAN HOMES COMMISSION ACT, 1920, AS AMENDED,"

begs leave to report as follows:

The purpose of this measure is to amend the Hawaiian Homes Commission Act, 1920, as amended, to increase the State's liability limit for monies borrowed by the Department of Hawaiian Home Lands, or loans made to lessees that are guaranteed by the Department, from $100,000,000 to $500,000,000.

Your Committee received testimony in support of this measure from the Department of Hawaiian Home Lands; Hoʻomana Pono, LLC; Legacy Ventures; Hawaiʻi Community Lending; CARES; and one individual.

Your Committee finds that, despite the historic $600,000,000 investment by the State into Hawaiian home lands in 2022, various factors have increased the cost of housing, including higher mortgage interest rates, increasing construction costs, and inflation. As a result, the Department of Hawaiian Home Lands has faced rising expenses in the construction of housing. This measure raises the liability cap, which will allow the Department to secure, pledge, or guarantee loan repayments up to $500,000,000.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2308, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2308, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair