STAND. COM. REP. NO. 2387

Honolulu, Hawaii

RE: S.B. No. 3127

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Hawaiian Affairs, to which was referred S.B. No. 3127 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to increase the limit of the State's liability for moneys 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, Koʻolau Foundation, Legacy Ventures, and two individuals.

Your Committee finds that the Department of Hawaiian Home Lands' ability to deliver homesteads and home ownership opportunities to beneficiaries is directly tied to the Department's ability to guarantee mortgage loans. Your Committee further finds that as lands held in trust by the Department of Hawaiian Home Lands are inalienable, the Department is required to guarantee mortgage loans made for homes on Hawaiian home lands when lenders do not have a loan assurance program. This measure will allow the Department of Hawaiian Home Lands to increase construction of affordable units and homeownership for beneficiaries.

Your Committee has amended this measure by:

(1) Inserting an effective date of September 9, 2129, to encourage further discussion; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3127, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3127, S.D. 1, and be referred to your Committees on Ways and Means and Judiciary.

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

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HERBERT M. RICHARDS, III, Chair