STAND. COM. REP. NO. 1298-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2599

S.D. 2

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 Water & Land, to which was referred S.B. No. 2599, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO DEVELOPMENT,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Redesignate the Stadium Development District as the Halawa Community Development District;

(2) Amend the composition of the Hawaii Community Development Authority for purposes of the Halawa Community Development District;

(3) Amend the duties and powers of the Hawaii Community Development Authority and Stadium Authority as they relate to activities within the Halawa Community Development District;

(4) Clarify the Hawaii Community Development Authority's permitting and consultation powers regarding public projects within community development districts;

(5) Establish the Halawa Community Development District Special Fund;

(6) Make the appropriation of funds from the Stadium Development Special Fund for the planning, design, and development of the Halawa Community Development District by the Hawaii Community Development Authority contingent upon the Stadium Authority's submitting proof that it has retained an independent qualified stadium construction expert and a finalized organizational plan, and the Hawaii Community Development Authority's submitting a community facilities district plan to use revenue bond authority from Act 252, Session Laws of Hawaii 2025; and

(7) Require the Hawaii Community Development Authority, when planning and developing housing, to endeavor to plan for complete communities that include various aspects supporting quality of life.

Your Committee received testimony in support of this measure from the Stadium Authority and Stanford Carr Development. Your Committee received comments on this measure from the Hawaiʻi Community Development Authority.

Your Committee finds that this measure provides important clarity regarding the respective roles of the Stadium Authority and the Hawaii Community Development Authority (HCDA) by reducing administrative redundancy and streamlining coordination between agencies. Your Committee further finds that this measure conditions expenditure of funds from the Stadium Development Special Fund upon compliance with certain land use, planning, and financing statutes. Your Committee also finds that this measure updates statutory provisions to ensure that the HCDA can fully modernize its development strategy and adopt best practices that have been successfully implemented for decades in jurisdictions across the United States and around the world to build vibrant communities and improve the quality of life for residents.

Your Committee has amended this measure by:

(1) Instead of requiring the Hawaii Community Development Authority, when planning and developing housing, to endeavor to plan for complete communities that include various aspects supporting quality of life, establishing more-aspirational development policy guidelines for such planning and development;

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

(3) 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 Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2599, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2599, S.D. 2, H.D. 1, and be referred to your Committee on Housing.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

____________________________

MARK J. HASHEM, Chair