HB 2616: HCDA; Banyan Drive; Banyan Drive-Makaokū Community Development District; New Special Fund; Powers and Duties; Appropriation

A BILL FOR AN ACT

RELATING TO THE BANYAN DRIVE-MAKAOKŪ COMMUNITY DEVELOPMENT DISTRICT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the Waiakea peninsula, which includes Banyan Drive and was historically known as Makaokū, is an area of significant cultural and historical importance to the island of Hawaii.  Its strategic location near Hilo town and the sites of the Merrie Monarch Festival make it a primary center for community activities and tourism that supports the State's cultural identity and economy.  However, the legislature finds that the area currently requires focused revitalization to address conditions of blight.  Issues such as a lack of adequate cultural stewardship, public safety, the declining health of historic banyan trees, poor lighting, and a substandard pedestrian experience have hindered the area's potential and diminished its value to the community.

     To address these challenges, the legislature determines that regaining state control over lands within the district in the near term is essential for successful renewal.  By establishing a community development district under the jurisdiction of the Hawaii community development authority, the area can be revitalized in a way that fosters cultural enrichment and enables cultural activities, events, and uses to coexist effectively with standalone hotel, commercial, and public uses.  This transformation will include the development of cultural and public facilities, including recreational, educational, and entertainment spaces that enhance the experience for residents and visitors.

     The legislature further finds that the ongoing oversight, regulation, and maintenance of the district require a stable and dedicated financial framework.  Because the costs of providing these services and maintaining the district's infrastructure may vary from year to year, the general fund appropriation process may not be sufficient to ensure long-term success.

     Therefore, the purpose of this Act is to:

     (1)  Establish the Banyan Drive-Makaokū community development district; and

     (2)  Establish a special fund to provide the Hawaii community development authority with the consistent resources necessary to improve and safeguard the cultural, economic, and social value of this vital area.

     SECTION 2.  Chapter 206E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part    .  Banyan drive-Makaokū community development district

     §206E-     Definitions.  As used in this part:

     "District" means the Banyan Drive-Makaokū community development district.

     "Fund" means the Banyan Drive-Makaokū community development district special fund.

     §206E-     District established; boundaries.  The Banyan Drive-Makaokū community development district is hereby established.  The district shall include all lands makai of the following areas:

     (1)  The western boundary is the Wailoa river;

     (2)  The southern boundary begins at the Wailoa river and follows Kamehameha avenue to its intersection with Kalanianaole street and then follows Kalanianaole street to Banyan way; and

     (3)  The eastern boundary is Reeds bay.

The district shall also include Moku Ola, also known as Coconut island on the north.

     §206E-     Banyan Drive-Makaokū redevelopment agency; chairperson; established.  (a)  The Banyan Drive-Makaokū redevelopment agency is hereby established.  The Banyan Drive-Makaokū redevelopment agency shall be an entity of the authority and responsible for implementing this part.

     (b)  The Banyan Drive-Makaokū redevelopment agency shall be headed by a chairperson to be known as the chairperson of the Banyan Drive-Makaokū redevelopment agency.  The chairperson of the Banyan Drive-Makaokū redevelopment agency shall be appointed by and shall serve at the pleasure of the authority.

     §206E-     Development guidance policies.  (a)  The following general development guidance policies shall govern the authority's actions in the district:

     (1)  Development shall seek to promote cultural activities, provide community facilities, and foster sustainable economic growth by encouraging diverse land uses and private sector investments;

     (2)  Hawaiian archaeological, historic, and cultural sites shall be preserved and protected;

     (3)  Land use and redevelopment activities within the district shall be coordinated with and, to the extent possible, complement existing state and county policies, plans, and programs affecting the district;

     (4)  Public facilities within the district shall be planned, located, and developed so as to support the redevelopment policies for the district established by this part and plans and rules adopted pursuant to this part;

     (5)  Development shall consider the impacts of climate change, sea level rise, inundation risk, and climate‑resilient development in the design and siting of buildings; and

     (6)  Development shall consider the inclusion of mobility solutions.

     (b)  The authority may engage in planning, design, and construction activities within and outside the district; provided that activities outside the district shall relate to infrastructure development, area-wide drainage improvements, roadway realignments and improvements, business and industrial relocation, and any other activities the authority deems necessary to carry out redevelopment of the district and implement this chapter.  Studies or coordinating activities may be undertaken by the authority in conjunction with the county and appropriate state agencies and may address, without limitation, facility systems, industrial relocation, and other activities.

     §206E-     Federal government; financial aid; contracts.  (a)  The authority may secure financial aid from the federal government for any planning, design, development, construction, and maintenance work that the authority is authorized to undertake pursuant to this part.

     (b)  Supplemental to the powers granted to the authority under section 206E-4, the authority may also:

     (1)  Borrow moneys or accept grants from the federal government in aid of or for any development project the authority is authorized to undertake pursuant to this part;

     (2)  Issue bonds or other evidence of indebtedness and pledge revenues and other assets as security for indebtedness incurred pursuant to this part;

     (3)  Repay any indebtedness, including any interest incurred thereon by the authority pursuant to this part;

     (4)  Procure insurance or loan guarantees from the federal government for the payment of any debts or parts thereof secured by mortgages made or held by the authority;

     (5)  Execute contracts with the federal government in accordance with this part; and

     (6)  Comply with terms and conditions required by the federal government in any contract or grant for federal assistance.

     (c)  It is the purpose and intent of this section to authorize the authority to do all things necessary to secure the cooperation of and financial aid from the federal government for any planning, design, development, construction, and maintenance work that the authority is authorized to undertake pursuant to this part.

     §206E-     District improvement and maintenance program.  Supplemental to the powers granted to the authority under section 206E-4, the authority may establish a district improvement and maintenance program to establish a mechanism to improve and maintain the district and do all things necessary to effectuate the establishment and operation of the district improvement and maintenance program, including but not limited to determining and assessing a service or regulatory fee in accordance with applicable law.  The authority may adopt rules pursuant to chapter 91 to implement the program.

     §206E-     Banyan Drive-Makaokū community development district special fund.  (a)  There is established in the state treasury the Banyan Drive-Makaokū community development district special fund into which shall be deposited:

     (1)  All revenues, income, and receipts of the authority for the district, notwithstanding any other law to the contrary, including section 206E-16; provided that revenues, income, and receipts derived from leases shall be paid to the agency that owns or manages the property;

     (2)  Moneys directed, allocated, or disbursed to the district from government agencies or private individuals or organizations, including grants, gifts, awards, donations, and moneys collected from the district improvement and maintenance program, for costs to administer and operate the district; and

     (3)  Moneys appropriated to the fund by the legislature.

     (b)  Moneys in the fund shall be used only for the purposes of this part.

     (c)  Investment earnings credited to the assets of the fund shall become assets of the fund."

     SECTION 3.  Section 206E-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The authority shall consist of the director of finance or the director's designee; the director of transportation or the director's designee; the director of business, economic development, and tourism or the director's designee; the chairperson of the board of land and natural resources; the director of planning or planning and permitting of each county in which a community development district is located or the director's designee; a cultural specialist; an at‑large member nominated by the president of the senate; an at‑large member nominated by the speaker of the house of representatives; two representatives of the Heeia community development district, comprising one resident of that district or the Koolaupoko district, which consists of sections 1 through 9 of zone 4 of the first tax map key division, and one owner of a small business or one officer or director of a nonprofit organization in the Heeia community development district or Koolaupoko district; two representatives of the Kalaeloa community development district, comprising one resident of the Ewa zone (zone 9, sections 1 through 2) or the Waianae zone (zone 8, sections 1 through 9) of the first tax map key division, and one owner of a small business or one officer or director of a nonprofit organization in the Ewa or Waianae zone; two representatives of the Kakaako community development district, comprising one resident of the district and one owner of a small business or one officer or director of a nonprofit organization in the district; two representatives of the Pulehunui community development district, consisting of one resident of the island of Maui, and one owner of a small business or one officer or director of a nonprofit organization on the island of Maui; [and,] the chairperson of the Banyan Drive-Makaokū redevelopment agency; two representatives of the Banyan Drive-Makaokū community development district, consisting of one resident of the Waiakea ahupuaa (zone 2, section 1, 2, or 4 of the third tax map key division), and one owner of a small business or an officer or director of a nonprofit organization located in the town of Hilo (zone 2, sections 1 through 5 of the third tax map key division); a lineal descendant of the Makaokū area; and for the purposes of part X of this chapter only, two experts on transit-oriented development, to be appointed one each by the president of the senate and the speaker of the house of representatives; and the following ex officio, nonvoting members:  the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over transportation, and the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over housing.

     All members except the director of finance; director of transportation; county directors of planning or planning and permitting; director of business, economic development, and tourism; chairperson of the board of land and natural resources; the two experts on transit-oriented development appointed by the president of the senate and speaker of the house of representatives, respectively; the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over transportation; the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over housing; or, where relevant, their respective designees; and the chairperson of the Banyan Drive-Makaokū redevelopment agency, shall be appointed by the governor pursuant to section 26-34.  The two at-large members nominated by the president of the senate and speaker of the house of representatives shall each be invited to serve and appointed by the governor from a list of three nominees submitted for each position by the nominating authority specified in this subsection.

     The president of the senate and the speaker of the house of representatives shall each submit a list of six nominees for each district to the governor to fill the two district representative positions for each community development district.  For each community development district, the governor shall appoint one member from a list of nominees submitted by the president of the senate and one member from a list of nominees submitted by the speaker of the house of representatives, and of the two appointees, one shall meet the district residency requirement and one shall meet the district small business owner or nonprofit organization officer or director requirement.

     The president of the senate and the speaker of the house of representatives shall each appoint a member having expertise and experience in urban planning and community development to fill the two positions designated for experts on transit-oriented development.

     The authority shall be organized and shall exercise jurisdiction as follows:

     (1)  For matters affecting the Heeia community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of finance or the director's designee;

          (B)  The director of transportation or the director's designee;

          (C)  The director of business, economic development, and tourism or the director's designee;

          (D)  The director of planning and permitting for the county in which the Heeia community development district is located or the director's designee;

          (E)  The cultural specialist;

          (F)  The two at-large members; and

          (G)  The two representatives of the Heeia community development district;

     (2)  For matters affecting the Kalaeloa community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of finance or the director's designee;

          (B)  The director of transportation or the director's designee;

          (C)  The director of business, economic development, and tourism or the director's designee;

          (D)  The director of planning and permitting for the county in which the Kalaeloa community development district is located or the director's designee;

          (E)  The cultural specialist;

          (F)  The two at-large members; and

          (G)  The two representatives of the Kalaeloa community development district;

     (3)  For matters affecting the Kakaako community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of finance or the director's designee;

          (B)  The director of transportation or the director's designee;

          (C)  The director of business, economic development, and tourism or the director's designee;

          (D)  The director of planning and permitting for the county in which the Kakaako community development district is located or the director's designee;

          (E)  The cultural specialist;

          (F)  The two at-large members; and

          (G)  The two representatives of the Kakaako community development district;

     (4)  For matters affecting the Pulehunui community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of finance or the director's designee;

          (B)  The director of transportation or the director's designee;

          (C)  The director of business, economic development, and tourism or the director's designee;

          (D)  The director of planning for the county in which the Pulehunui community development district is located or the director's designee;

          (E)  The chairperson of the board of land and natural resources or the chairperson's designee;

          (F)  The cultural specialist;

          (G)  The two at-large members; and

          (H)  The two representatives of the Pulehunui community development district; [and]

     (5)  For matters affecting part X of this chapter only, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of finance or the director's designee;

          (B)  The director of transportation or the director's designee;

          (C)  The director of business, economic development, and tourism or the director's designee;

          (D)  The chairperson of the board of land and natural resources or the chairperson's designee;

          (E)  The director of planning for the county in which the program area is located or the director's designee;

          (F)  The cultural specialist;

          (G)  The two at-large members; and

          (H)  The two experts on transit-oriented development appointed by the president of the senate and the speaker of the house of representatives[.]; and

     (6)  For matters affecting the Banyan Drive-Makaokū community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of business, economic development, and tourism or the director's designee;

          (B)  The director of finance or the director's designee;

          (C)  The chairperson of the board of land and natural resources or the chairperson's designee;

          (D)  The director of transportation or the director's designee;

          (E)  The director of planning for the county in which the Banyan Drive-Makaokū community development district is located or the director's designee;

          (F)  The chairperson of the Banyan Drive-Makaokū redevelopment agency;

          (G)  The cultural specialist;

          (H)  The two at-large members;

          (I)  A lineal descendant of the Makaokū area; and

          (J)  The two representatives of the Banyan Drive-Makaokū community development district;

     [In the event of] If a vacancy[,] occurs, a member shall be appointed to fill the vacancy in the same manner as the original appointment within thirty days of the vacancy or within ten days of the senate's rejection of a previous appointment, as applicable.

     The terms of the director of finance; director of transportation; county directors of planning and permitting; director of business, economic development, and tourism; and chairperson of the board of land and natural resources[;], or their respective designees; and the chairperson of the Banyan Drive-Makaokū redevelopment agency, shall run concurrently with each official's term of office.  The terms of the appointed voting members shall be for four years, commencing on July 1 and expiring on June 30.  The governor shall provide for staggered terms of the initially appointed voting members so that the initial terms of four members selected by lot shall be for two years, the initial terms of four members selected by lot shall be for three years, and the initial terms of the remaining three members shall be for four years.  The terms on the authority of the chairpersons of the senate and house of representatives standing committees having jurisdiction over housing and the chairpersons of the senate and house of representatives standing committees having jurisdiction over transportation shall run concurrently with that respective legislator's term as the chairperson of that respective committee.

     The governor may remove or suspend for cause any member after due notice and public hearing.

     Notwithstanding section 92-15, a majority of all eligible voting members as specified in this subsection shall constitute a quorum to do business, and the concurrence of a majority of all eligible voting members as specified in this subsection shall be necessary to make any action of the authority valid.  All members shall continue in office until their respective successors have been appointed and qualified.  Except as herein provided, no member appointed under this subsection shall be an officer or employee of the State or its political subdivisions.

     For purposes of this section, "small business" means a business that is independently owned and that is not dominant in its field of operation."

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $2,000,000 or so much thereof as may be necessary for the fiscal year 2026-2027 for the Hawaii community development authority to implement this Act and to:

     (1)  Draft and adopt rules under chapter 91, Hawaii Revised Statutes; and

     (2)  Perform an environmental assessment or environmental impact statement under chapter 343, Hawaii Revised Statutes, for any property within the Banyan Drive-Makaokū community development district.

     The sum appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.

     SECTION 5.  There is appropriated out of the general revenues of the State of Hawaii the sum of $250,000 or so much thereof as may be necessary for fiscal year 2026-2027 for deposit into the Banyan Drive-Makaokū community development district special fund.

     SECTION 6.  There is appropriated out of the Banyan Drive-Makaokū community development district special fund the sum of $250,000 or so much thereof as may be necessary for fiscal year 2026-2027 to be used for the purposes of the Banyan Drive-Makaokū community development district special fund.

     The sum appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.

     SECTION 7.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of one full-time equivalent (1.0 FTE) position within the Hawaii community development authority.

     The sum appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.

     SECTION 8.  This Act shall be liberally construed in order to accomplish the purposes set forth herein.  If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 9.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 10.  This Act shall take effect on July 1, 3000.

Report Title:

HCDA; Banyan Drive; Banyan Drive-Makaokū Community Development District; New Special Fund; Powers and Duties; Appropriation

Description:

Establishes the Banyan Drive-Makaokū Community Development District as an entity within the Hawaii Community Development Authority.  Establishes the Banyan Drive-Makaokū Community Development District Special Fund.  Specifies the powers and duties of the Authority as it relates to the new development district and amends the composition of the Authority to include representatives of the new development district.  Appropriates funds.  Effective 7/1/3000.  (HD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO THE BANYAN DRIVE-MAKAOKŪ COMMUNITY DEVELOPMENT DISTRICT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the Waiakea peninsula, which includes Banyan Drive and was historically known as Makaokū, is an area of significant cultural and historical importance to the island of Hawaii.  Its strategic location near Hilo town and the sites of the Merrie Monarch Festival make it a primary center for community activities and tourism that supports the State's cultural identity and economy.  However, the legislature finds that the area currently requires focused revitalization to address conditions of blight.  Issues such as a lack of adequate cultural stewardship, public safety, the declining health of historic banyan trees, poor lighting, and a substandard pedestrian experience have hindered the area's potential and diminished its value to the community.

     To address these challenges, the legislature determines that regaining state control over lands within the district in the near term is essential for successful renewal.  By establishing a community development district under the jurisdiction of the Hawaii community development authority, the area can be revitalized in a way that fosters cultural enrichment and enables cultural activities, events, and uses to coexist effectively with standalone hotel, commercial, and public uses.  This transformation will include the development of cultural and public facilities, including recreational, educational, and entertainment spaces that enhance the experience for residents and visitors.

     The legislature further finds that the ongoing oversight, regulation, and maintenance of the district require a stable and dedicated financial framework.  Because the costs of providing these services and maintaining the district's infrastructure may vary from year to year, the general fund appropriation process may not be sufficient to ensure long-term success.

     Therefore, the purpose of this Act is to:

     (1)  Establish the Waiakea community development district; and

     (2)  Establish a special fund to provide the Hawaii community development authority with the consistent resources necessary to improve and safeguard the cultural, economic, and social value of this vital area.

     SECTION 2.  Chapter 206E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part    .  Waiakea community development district

     §206E-     Definitions.  As used in this part:

     "District" means the Waiakea community development district.

     "Fund" means the Waiakea community development district special fund.

     §206E-     District established; boundaries.  The Waiakea community development district is hereby established.  The district shall include all lands makai of the following areas, inclusive of the entire width of any rights-of-way forming the boundary:

     (1)  The western boundary is the Wailoa river;

     (2)  The southern boundary begins at the Wailoa river and follows Kamehameha avenue to its intersection with Kalanianaole street and then follows Kalanianaole street to Banyan way; and

     (3)  The eastern boundary is Reeds bay.

The district shall also include Moku Ola, also known as Coconut island on the north.

     §206E-     Development guidance policies.  (a)  The following general development guidance policies shall govern the authority's actions in the district:

     (1)  Development shall seek to promote cultural activities, provide community facilities, and foster sustainable economic growth by encouraging diverse land uses and private sector investments;

     (2)  Hawaiian archaeological, historic, and cultural sites shall be preserved and protected;

     (3)  Land use and redevelopment activities within the district shall be coordinated with and, to the extent possible, complement existing state and county policies, plans, and programs affecting the district;

     (4)  Public facilities within the district shall be planned, located, and developed so as to support the redevelopment policies for the district established by this part and plans and rules adopted pursuant to this part;

     (5)  Development shall consider the impacts of climate change, sea level rise, inundation risk, and climate‑resilient development in the design and siting of buildings;

     (6)  Development shall consider the inclusion of mobility solutions; and

     (7)  The guidance of the community advisory council shall be sought in the redevelopment of the district.

     (b)  The authority may engage in planning, design, and construction activities within and outside the district; provided that activities outside the district shall relate to infrastructure development, area-wide drainage improvements, roadway realignments and improvements, business and industrial relocation, and any other activities the authority deems necessary to carry out redevelopment of the district and implement this chapter.  Studies or coordinating activities may be undertaken by the authority in conjunction with the county and appropriate state agencies and may address, without limitation, facility systems, industrial relocation, and other activities.

     §206E-     Federal government; financial aid; contracts.  (a)  The authority may secure financial aid from the federal government for any planning, design, development, construction, and maintenance work that the authority is authorized to undertake pursuant to this part.

     (b)  Supplemental to the powers granted to the authority under section 206E-4, the authority may also:

     (1)  Borrow moneys or accept grants from the federal government in aid of or for any development project the authority is authorized to undertake pursuant to this part;

     (2)  Issue bonds or other evidence of indebtedness and pledge revenues and other assets as security for indebtedness incurred pursuant to this part;

     (3)  Repay any indebtedness, including any interest incurred thereon by the authority pursuant to this part;

     (4)  Procure insurance or loan guarantees from the federal government for the payment of any debts or parts thereof secured by mortgages made or held by the authority;

     (5)  Execute contracts with the federal government in accordance with this part; and

     (6)  Comply with terms and conditions required by the federal government in any contract or grant for federal assistance.

     (c)  It is the purpose and intent of this section to authorize the authority to do all things necessary to secure the cooperation of and financial aid from the federal government for any planning, design, development, construction, and maintenance work that the authority is authorized to undertake pursuant to this part.

     §206E-     District improvement and maintenance program.  Supplemental to the powers granted to the authority under section 206E-4, the authority may establish a district improvement and maintenance program to establish a mechanism to improve and maintain the district and do all things necessary to effectuate the establishment and operation of the district improvement and maintenance program, including but not limited to determining and assessing a service or regulatory fee in accordance with applicable law.  The authority may adopt rules pursuant to chapter 91 to implement the program.

     §206E-     Waiakea community development district special fund.  (a)  There is established in the state treasury the Waiakea community development district special fund into which shall be deposited:

     (1)  All revenues, income, and receipts of the authority for the district, notwithstanding any other law to the contrary, including section 206E-16; provided that revenues, income, and receipts derived from leases shall be paid to the agency that owns or manages the property;

     (2)  Moneys directed, allocated, or disbursed to the district from government agencies or private individuals or organizations, including grants, gifts, awards, donations, and moneys collected from the district improvement and maintenance program, for costs to administer and operate the district; and

     (3)  Moneys appropriated to the fund by the legislature.

     (b)  Moneys in the fund shall be used only for the purposes of this part.

     (c)  Investment earnings credited to the assets of the fund shall become assets of the fund.

     §206E-     Community advisory council; established.  (a)  The authority shall establish a community advisory council for the district.

     (b)  The community advisory council shall provide guidance and ensure effective citizen participation in the redevelopment of the district.

     (c)  The community advisory council shall consist of community stakeholders who are selected by the authority and include at least one lineal or cultural descendant with ties to the Waiakea ahupuaa, who shall be selected with input from the office of Hawaiian affairs."

     SECTION 3.  Section 206E-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The authority shall consist of the director of finance or the director's designee; the director of transportation or the director's designee; the director of business, economic development, and tourism or the director's designee; the chairperson of the board of land and natural resources; the director of planning or planning and permitting of each county in which a community development district is located or the director's designee; the chairperson of the Banyan Drive Hawaii redevelopment agency of the county of Hawaii, or a designee; a cultural specialist; an at‑large member nominated by the president of the senate; an at‑large member nominated by the speaker of the house of representatives; two representatives of the Heeia community development district, comprising one resident of that district or the Koolaupoko district, which consists of sections 1 through 9 of zone 4 of the first tax map key division, and one owner of a small business or one officer or director of a nonprofit organization in the Heeia community development district or Koolaupoko district; two representatives of the Kalaeloa community development district, comprising one resident of the Ewa zone (zone 9, sections 1 through 2) or the Waianae zone (zone 8, sections 1 through 9) of the first tax map key division, and one owner of a small business or one officer or director of a nonprofit organization in the Ewa or Waianae zone; two representatives of the Kakaako community development district, comprising one resident of the district and one owner of a small business or one officer or director of a nonprofit organization in the district; two representatives of the Pulehunui community development district, consisting of one resident of the island of Maui, and one owner of a small business or one officer or director of a nonprofit organization on the island of Maui; [and,] two representatives of the Waiakea community development district, consisting of one resident of the Waiakea ahupuaa (zone 2, section 1, 2, or 4 of the third tax map key division), and one owner of a small business or an officer or director of a nonprofit organization located in the town of Hilo (zone 2, sections 1 through 5 of the third tax map key division); and for the purposes of part X of this chapter only, two experts on transit-oriented development, to be appointed one each by the president of the senate and the speaker of the house of representatives; and the following ex officio, nonvoting members:  the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over transportation, and the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over housing.

     All members except the director of finance; director of transportation; county directors of planning or planning and permitting; director of business, economic development, and tourism; chairperson of the board of land and natural resources; the two experts on transit-oriented development appointed by the president of the senate and speaker of the house of representatives, respectively; the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over transportation; the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over housing; or, where relevant, their respective designees; and the chairperson of the Banyan Drive Hawaii redevelopment agency of the county of Hawaii, or a designee, shall be appointed by the governor pursuant to section 26-34.  The two at-large members nominated by the president of the senate and speaker of the house of representatives shall each be invited to serve and appointed by the governor from a list of three nominees submitted for each position by the nominating authority specified in this subsection.

     The president of the senate and the speaker of the house of representatives shall each submit a list of six nominees for each district to the governor to fill the two district representative positions for each community development district.  For each community development district, the governor shall appoint one member from a list of nominees submitted by the president of the senate and one member from a list of nominees submitted by the speaker of the house of representatives, and of the two appointees, one shall meet the district residency requirement and one shall meet the district small business owner or nonprofit organization officer or director requirement.

     The president of the senate and the speaker of the house of representatives shall each appoint a member having expertise and experience in urban planning and community development to fill the two positions designated for experts on transit-oriented development.

     The authority shall be organized and shall exercise jurisdiction as follows:

     (1)  For matters affecting the Heeia community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of finance or the director's designee;

          (B)  The director of transportation or the director's designee;

          (C)  The director of business, economic development, and tourism or the director's designee;

          (D)  The director of planning and permitting for the county in which the Heeia community development district is located or the director's designee;

          (E)  The cultural specialist;

          (F)  The two at-large members; and

          (G)  The two representatives of the Heeia community development district;

     (2)  For matters affecting the Kalaeloa community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of finance or the director's designee;

          (B)  The director of transportation or the director's designee;

          (C)  The director of business, economic development, and tourism or the director's designee;

          (D)  The director of planning and permitting for the county in which the Kalaeloa community development district is located or the director's designee;

          (E)  The cultural specialist;

          (F)  The two at-large members; and

          (G)  The two representatives of the Kalaeloa community development district;

     (3)  For matters affecting the Kakaako community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of finance or the director's designee;

          (B)  The director of transportation or the director's designee;

          (C)  The director of business, economic development, and tourism or the director's designee;

          (D)  The director of planning and permitting for the county in which the Kakaako community development district is located or the director's designee;

          (E)  The cultural specialist;

          (F)  The two at-large members; and

          (G)  The two representatives of the Kakaako community development district;

     (4)  For matters affecting the Pulehunui community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of finance or the director's designee;

          (B)  The director of transportation or the director's designee;

          (C)  The director of business, economic development, and tourism or the director's designee;

          (D)  The director of planning for the county in which the Pulehunui community development district is located or the director's designee;

          (E)  The chairperson of the board of land and natural resources or the chairperson's designee;

          (F)  The cultural specialist;

          (G)  The two at-large members; and

          (H)  The two representatives of the Pulehunui community development district; [and]

     (5)  For matters affecting part X of this chapter only, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of finance or the director's designee;

          (B)  The director of transportation or the director's designee;

          (C)  The director of business, economic development, and tourism or the director's designee;

          (D)  The chairperson of the board of land and natural resources or the chairperson's designee;

          (E)  The director of planning for the county in which the program area is located or the director's designee;

          (F)  The cultural specialist;

          (G)  The two at-large members; and

          (H)  The two experts on transit-oriented development appointed by the president of the senate and the speaker of the house of representatives[.]; and

     (6)  For matters affecting the Waiakea community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of business, economic development, and tourism or the director's designee;

          (B)  The director of finance or the director's designee;

          (C)  The chairperson of the board of land and natural resources or the chairperson's designee;

          (D)  The director of transportation or the director's designee;

          (E)  The director of planning for the county in which the Waiakea community development district is located or the director's designee;

          (F)  The chairperson of the Banyan Drive Hawaii redevelopment agency of the county of Hawaii, or a designee;

          (G)  The cultural specialist;

          (H)  The two at-large members; and

          (I)  The two representatives of the Waiakea community development district;

     [In the event of] If a vacancy[,] occurs, a member shall be appointed to fill the vacancy in the same manner as the original appointment within thirty days of the vacancy or within ten days of the senate's rejection of a previous appointment, as applicable.

     The terms of the director of finance; director of transportation; county directors of planning and permitting; director of business, economic development, and tourism; and chairperson of the board of land and natural resources[;], or their respective designees; and the chairperson of the Banyan Drive Hawaii redevelopment agency of the county of Hawaii, or a designee, shall run concurrently with each official's term of office.  The terms of the appointed voting members shall be for four years, commencing on July 1 and expiring on June 30.  The governor shall provide for staggered terms of the initially appointed voting members so that the initial terms of four members selected by lot shall be for two years, the initial terms of four members selected by lot shall be for three years, and the initial terms of the remaining three members shall be for four years.  The terms on the authority of the chairpersons of the senate and house of representatives standing committees having jurisdiction over housing and the chairpersons of the senate and house of representatives standing committees having jurisdiction over transportation shall run concurrently with that respective legislator's term as the chairperson of that respective committee.

     The governor may remove or suspend for cause any member after due notice and public hearing.

     Notwithstanding section 92-15, a majority of all eligible voting members as specified in this subsection shall constitute a quorum to do business, and the concurrence of a majority of all eligible voting members as specified in this subsection shall be necessary to make any action of the authority valid.  All members shall continue in office until their respective successors have been appointed and qualified.  Except as herein provided, no member appointed under this subsection shall be an officer or employee of the State or its political subdivisions.

     For purposes of this section, "small business" means a business that is independently owned and that is not dominant in its field of operation."

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $2,000,000 or so much thereof as may be necessary for the fiscal year 2026-2027 for the Hawaii community development authority to implement this Act and to:

     (1)  Draft and adopt rules under chapter 91, Hawaii Revised Statutes; and

     (2)  Perform an environmental assessment or environmental impact statement under chapter 343, Hawaii Revised Statutes, for any property within the Waiakea community development district.

     The sum appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.

     SECTION 5.  There is appropriated out of the general revenues of the State of Hawaii the sum of $250,000 or so much thereof as may be necessary for fiscal year 2026-2027 for deposit into the Waiakea community development district special fund.

     SECTION 6.  There is appropriated out of the Waiakea community development district special fund the sum of $250,000 or so much thereof as may be necessary for fiscal year 2026-2027 to be used for the purposes of the Waiakea community development district special fund.

     The sum appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.

     SECTION 7.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of one full-time equivalent (1.0 FTE) position within the Hawaii community development authority.

     The sum appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.

     SECTION 8.  This Act shall be liberally construed in order to accomplish the purposes set forth herein.  If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 9.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 10.  This Act shall take effect on July 1, 3000.

Report Title:

HCDA; Banyan Drive; Waiakea Community Development District; New Special Fund; Powers and Duties; Community Advisory Council; Appropriation

Description:

Establishes the Waiakea Community Development District within the Hawaii Community Development Authority.  Establishes the Waiakea Community Development District Special Fund.  Specifies the powers and duties of the Authority as it relates to the new development district and amends the composition of the Authority to include representatives of the new development district.  Establishes a Community Advisory Council to provide guidance regarding the redevelopment of the Waiakea Community Development District.  Appropriates funds.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to the banyan drive-Makaokū community development district.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the Waiakea peninsula, which includes Banyan Drive and was historically known as Makaokū, is an area of significant cultural and historical importance to the island of Hawaii.  Its strategic location near Hilo town and the sites of the Merrie Monarch Festival make it a primary center for community activities and tourism that supports the State's cultural identity and economy.  However, the legislature finds that the area currently requires focused revitalization to address conditions of blight.  Issues such as a lack of adequate cultural stewardship, public safety, the declining health of historic banyan trees, poor lighting, and a substandard pedestrian experience have hindered the area's potential and diminished its value to the community.

     To address these challenges, the legislature determines that regaining state control over lands within the district in the near term is essential for successful renewal.  By establishing a community development district under the jurisdiction of the Hawaii community development authority, the area can be revitalized in a way that fosters cultural enrichment and enables cultural activities, events, and uses to coexist effectively with standalone hotel, commercial, and public uses.  This transformation will include the development of cultural and public facilities, including recreational, educational, and entertainment spaces that enhance the experience for residents and visitors.

     The legislature further finds that the ongoing oversight, regulation, and maintenance of the district require a stable and dedicated financial framework.  Because the costs of providing these services and maintaining the district's infrastructure may vary from year to year, the general fund appropriation process may not be sufficient to ensure long-term success.

     Therefore, the purpose of this Act is to:

     (1)  Establish the Banyan Drive-Makaokū community development district; and

     (2)  Establish a special fund to provide the Hawaii community development authority with the consistent resources necessary to improve and safeguard the cultural, economic, and social value of this vital area.

     SECTION 2.  Chapter 206E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part    .  Banyan drive-Makaokū community development district

     §206E-     Definitions.  As used in this part:

     "District" means the Banyan Drive-Makaokū community development district.

     "Fund" means the Banyan Drive-Makaokū community development district special fund.

     §206E-     District established; boundaries.  The Banyan Drive-Makaokū community development district is hereby established.  The district shall include all lands makai of the following areas:

     (1)  The western boundary is the Wailoa river;

     (2)  The southern boundary begins at the Wailoa river and follows Kamehameha avenue to its intersection with Kalanianaole street and then follows Kalanianaole street to Banyan way; and

     (3)  The eastern boundary is Reeds bay.

The district shall also include Moku Ola, also known as Coconut island on the north.

     §206E-     Banyan Drive-Makaokū redevelopment agency; chairperson; established.  (a)  The Banyan Drive-Makaokū redevelopment agency is hereby established.  The Banyan Drive-Makaokū redevelopment agency shall be an entity of the authority and responsible for implementing this part.

     (b)  The Banyan Drive-Makaokū redevelopment agency shall be headed by a chairperson to be known as the chairperson of the Banyan Drive-Makaokū redevelopment agency.  The chairperson of the Banyan Drive-Makaokū redevelopment agency shall be appointed by and shall serve at the pleasure of the authority.

     §206E-     Development guidance policies.  (a)  The following general development guidance policies shall govern the authority's actions in the district:

     (1)  Development shall seek to promote cultural activities, provide community facilities, and foster sustainable economic growth by encouraging diverse land uses and private sector investments;

     (2)  Hawaiian archaeological, historic, and cultural sites shall be preserved and protected;

     (3)  Land use and redevelopment activities within the district shall be coordinated with and, to the extent possible, complement existing state and county policies, plans, and programs affecting the district;

     (4)  Public facilities within the district shall be planned, located, and developed so as to support the redevelopment policies for the district established by this part and plans and rules adopted pursuant to this part;

     (5)  Development shall consider the impacts of climate change, sea level rise, inundation risk, and climate‑resilient development in the design and siting of buildings; and

     (6)  Development shall consider the inclusion of mobility solutions.

     (b)  The authority may engage in planning, design, and construction activities within and outside the district; provided that activities outside the district shall relate to infrastructure development, area-wide drainage improvements, roadway realignments and improvements, business and industrial relocation, and any other activities the authority deems necessary to carry out redevelopment of the district and implement this chapter.  Studies or coordinating activities may be undertaken by the authority in conjunction with the county and appropriate state agencies and may address, without limitation, facility systems, industrial relocation, and other activities.

     §206E-     Federal government; financial aid; contracts.  (a)  The authority may secure financial aid from the federal government for any planning, design, development, construction, and maintenance work that the authority is authorized to undertake pursuant to this part.

     (b)  Supplemental to the powers granted to the authority under section 206E-4, the authority may also:

     (1)  Borrow moneys or accept grants from the federal government in aid of or for any development project the authority is authorized to undertake pursuant to this part;

     (2)  Issue bonds or other evidence of indebtedness and pledge revenues and other assets as security for indebtedness incurred pursuant to this part;

     (3)  Repay any indebtedness, including any interest incurred thereon by the authority pursuant to this part;

     (4)  Procure insurance or loan guarantees from the federal government for the payment of any debts or parts thereof secured by mortgages made or held by the authority;

     (5)  Execute contracts with the federal government in accordance with this part; and

     (6)  Comply with terms and conditions required by the federal government in any contract or grant for federal assistance.

     (c)  It is the purpose and intent of this section to authorize the authority to do all things necessary to secure the cooperation of and financial aid from the federal government for any planning, design, development, construction, and maintenance work that the authority is authorized to undertake pursuant to this part.

     §206E-     District improvement and maintenance program.  Supplemental to the powers granted to the authority under section 206E-4, the authority may establish a district improvement and maintenance program to establish a mechanism to improve and maintain the district and do all things necessary to effectuate the establishment and operation of the district improvement and maintenance program, including but not limited to determining and assessing a service or regulatory fee in accordance with applicable law.  The authority may adopt rules pursuant to chapter 91 to implement the program.

     §206E-     Banyan Drive-Makaokū community development district special fund.  (a)  There is established in the state treasury the Banyan Drive-Makaokū community development district special fund into which shall be deposited:

     (1)  All revenues, income, and receipts of the authority for the district, notwithstanding any other law to the contrary, including section 206E-16; provided that revenues, income, and receipts derived from leases shall be paid to the agency that owns or manages the property;

     (2)  Moneys directed, allocated, or disbursed to the district from government agencies or private individuals or organizations, including grants, gifts, awards, donations, and moneys collected from the district improvement and maintenance program, for costs to administer and operate the district; and

     (3)  Moneys appropriated to the fund by the legislature.

     (b)  Moneys in the fund shall be used only for the purposes of this part.

     (c)  Investment earnings credited to the assets of the fund shall become assets of the fund."

     SECTION 3.  Section 206E-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The authority shall consist of the director of finance or the director's designee; the director of transportation or the director's designee; the director of business, economic development, and tourism or the director's designee; the chairperson of the board of land and natural resources; the director of planning or planning and permitting of each county in which a community development district is located or the director's designee; the chairperson of the Banyan Drive-Makaokū redevelopment agency; a cultural specialist; an at‑large member nominated by the president of the senate; an at‑large member nominated by the speaker of the house of representatives; two representatives of the Heeia community development district, comprising one resident of that district or the Koolaupoko district, which consists of sections 1 through 9 of zone 4 of the first tax map key division, and one owner of a small business or one officer or director of a nonprofit organization in the Heeia community development district or Koolaupoko district; two representatives of the Kalaeloa community development district, comprising one resident of the Ewa zone (zone 9, sections 1 through 2) or the Waianae zone (zone 8, sections 1 through 9) of the first tax map key division, and one owner of a small business or one officer or director of a nonprofit organization in the Ewa or Waianae zone; two representatives of the Kakaako community development district, comprising one resident of the district and one owner of a small business or one officer or director of a nonprofit organization in the district; two representatives of the Pulehunui community development district, consisting of one resident of the island of Maui, and one owner of a small business or one officer or director of a nonprofit organization on the island of Maui; [and,] two representatives of the Banyan Drive-Makaokū community development district, consisting of one resident of the Waiakea ahupuaa (zone 2, section 1, 2, or 4 of the third tax map key division), and one owner of a small business or an officer or director of a nonprofit organization located in the town of Hilo (zone 2, sections 1 through 5 of the third tax map key division); and for the purposes of part X of this chapter only, two experts on transit-oriented development, to be appointed one each by the president of the senate and the speaker of the house of representatives; and the following ex officio, nonvoting members:  the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over transportation, and the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over housing.

     All members except the director of finance; director of transportation; county directors of planning or planning and permitting; director of business, economic development, and tourism; chairperson of the board of land and natural resources; the two experts on transit-oriented development appointed by the president of the senate and speaker of the house of representatives, respectively; the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over transportation; the chairpersons of the respective senate and house of representatives standing committees having jurisdiction over housing; or, where relevant, their respective designees; and the chairperson of the Banyan Drive-Makaokū redevelopment agency, shall be appointed by the governor pursuant to section 26-34.  The two at-large members nominated by the president of the senate and speaker of the house of representatives shall each be invited to serve and appointed by the governor from a list of three nominees submitted for each position by the nominating authority specified in this subsection.

     The president of the senate and the speaker of the house of representatives shall each submit a list of six nominees for each district to the governor to fill the two district representative positions for each community development district.  For each community development district, the governor shall appoint one member from a list of nominees submitted by the president of the senate and one member from a list of nominees submitted by the speaker of the house of representatives, and of the two appointees, one shall meet the district residency requirement and one shall meet the district small business owner or nonprofit organization officer or director requirement.

     The president of the senate and the speaker of the house of representatives shall each appoint a member having expertise and experience in urban planning and community development to fill the two positions designated for experts on transit-oriented development.

     The authority shall be organized and shall exercise jurisdiction as follows:

     (1)  For matters affecting the Heeia community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of finance or the director's designee;

          (B)  The director of transportation or the director's designee;

          (C)  The director of business, economic development, and tourism or the director's designee;

          (D)  The director of planning and permitting for the county in which the Heeia community development district is located or the director's designee;

          (E)  The cultural specialist;

          (F)  The two at-large members; and

          (G)  The two representatives of the Heeia community development district;

     (2)  For matters affecting the Kalaeloa community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of finance or the director's designee;

          (B)  The director of transportation or the director's designee;

          (C)  The director of business, economic development, and tourism or the director's designee;

          (D)  The director of planning and permitting for the county in which the Kalaeloa community development district is located or the director's designee;

          (E)  The cultural specialist;

          (F)  The two at-large members; and

          (G)  The two representatives of the Kalaeloa community development district;

     (3)  For matters affecting the Kakaako community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of finance or the director's designee;

          (B)  The director of transportation or the director's designee;

          (C)  The director of business, economic development, and tourism or the director's designee;

          (D)  The director of planning and permitting for the county in which the Kakaako community development district is located or the director's designee;

          (E)  The cultural specialist;

          (F)  The two at-large members; and

          (G)  The two representatives of the Kakaako community development district;

     (4)  For matters affecting the Pulehunui community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of finance or the director's designee;

          (B)  The director of transportation or the director's designee;

          (C)  The director of business, economic development, and tourism or the director's designee;

          (D)  The director of planning for the county in which the Pulehunui community development district is located or the director's designee;

          (E)  The chairperson of the board of land and natural resources or the chairperson's designee;

          (F)  The cultural specialist;

          (G)  The two at-large members; and

          (H)  The two representatives of the Pulehunui community development district; [and]

     (5)  For matters affecting part X of this chapter only, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of finance or the director's designee;

          (B)  The director of transportation or the director's designee;

          (C)  The director of business, economic development, and tourism or the director's designee;

          (D)  The chairperson of the board of land and natural resources or the chairperson's designee;

          (E)  The director of planning for the county in which the program area is located or the director's designee;

          (F)  The cultural specialist;

          (G)  The two at-large members; and

          (H)  The two experts on transit-oriented development appointed by the president of the senate and the speaker of the house of representatives[.]; and

     (6)  For matters affecting the Banyan Drive-Makaokū community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

          (A)  The director of business, economic development, and tourism or the director's designee;

          (B)  The director of finance or the director's designee;

          (C)  The chairperson of the board of land and natural resources or the chairperson's designee;

          (D)  The director of transportation or the director's designee;

          (E)  The director of planning for the county in which the Banyan Drive-Makaokū community development district is located or the director's designee;

          (F)  The chairperson of the Banyan Drive-Makaokū redevelopment agency;

          (G)  The cultural specialist;

          (H)  The two at-large members;

          (I)  A lineal descendant of the Makaokū area; and

          (J)  The two representatives of the Banyan Drive-Makaokū community development district;

     [In the event of] If a vacancy[,] occurs, a member shall be appointed to fill the vacancy in the same manner as the original appointment within thirty days of the vacancy or within ten days of the senate's rejection of a previous appointment, as applicable.

     The terms of the director of finance; director of transportation; county directors of planning and permitting; director of business, economic development, and tourism; and chairperson of the board of land and natural resources[;], or their respective designees; and the chairperson of the Banyan Drive-Makaokū redevelopment agency, shall run concurrently with each official's term of office.  The terms of the appointed voting members shall be for four years, commencing on July 1 and expiring on June 30.  The governor shall provide for staggered terms of the initially appointed voting members so that the initial terms of four members selected by lot shall be for two years, the initial terms of four members selected by lot shall be for three years, and the initial terms of the remaining three members shall be for four years.  The terms on the authority of the chairpersons of the senate and house of representatives standing committees having jurisdiction over housing and the chairpersons of the senate and house of representatives standing committees having jurisdiction over transportation shall run concurrently with that respective legislator's term as the chairperson of that respective committee.

     The governor may remove or suspend for cause any member after due notice and public hearing.

     Notwithstanding section 92-15, a majority of all eligible voting members as specified in this subsection shall constitute a quorum to do business, and the concurrence of a majority of all eligible voting members as specified in this subsection shall be necessary to make any action of the authority valid.  All members shall continue in office until their respective successors have been appointed and qualified.  Except as herein provided, no member appointed under this subsection shall be an officer or employee of the State or its political subdivisions.

     For purposes of this section, "small business" means a business that is independently owned and that is not dominant in its field of operation."

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $2,000,000 or so much thereof as may be necessary for the fiscal year 2026-2027 for the Hawaii community development authority to implement this Act and to:

     (1)  Draft and adopt rules under chapter 91, Hawaii Revised Statutes; and

     (2)  Perform an environmental assessment or environmental impact statement under chapter 343, Hawaii Revised Statutes, for any property within the Banyan Drive-Makaokū community development district.

     The sum appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.

     SECTION 5.  There is appropriated out of the general revenues of the State of Hawaii the sum of $250,000 or so much thereof as may be necessary for fiscal year 2026-2027 for deposit into the Banyan Drive-Makaokū community development district special fund.

     SECTION 6.  There is appropriated out of the Banyan Drive-Makaokū community development district special fund the sum of $250,000 or so much thereof as may be necessary for fiscal year 2026-2027 to be used for the purposes of the Banyan Drive-Makaokū community development district special fund.

     The sum appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.

     SECTION 7.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of one full-time equivalent (1.0 FTE) position within the Hawaii community development authority.

     The sum appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.

     SECTION 8.  This Act shall be liberally construed in order to accomplish the purposes set forth herein.  If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 9.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 10.  This Act shall take effect on July 1, 2026.

Report Title:

HCDA; Banyan Drive; Banyan Drive-Makaokū Community Development District; New Special Fund; Powers and Duties; Appropriation

Description:

Establishes the Banyan Drive-Makaokū Community Development District as an entity within the Hawaii Community Development Authority.  Establishes the Banyan Drive-Makaokū Community Development District Special Fund.  Specifies the powers and duties of the Authority as it relates to the new development district and amends the composition of the Authority to include representatives of the new development district.  Appropriates funds.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  1078-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 2616

      H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Finance, to which was referred H.B. No. 2616, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE BANYAN DRIVE-MAKAOKŪ COMMUNITY DEVELOPMENT DISTRICT,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish the Waiakea Community Development District within the Hawaii Community Development Authority;

     (2)  Specify the powers and duties of the Hawaii Community Development Authority as it relates to the new development district and amend the composition of the Authority to include representatives of the new development district;

     (3)  Establish, and appropriate funds into and out of, the Waiakea Community Development District Special Fund; and

     (4)  Establish a Community Advisory Council to provide guidance regarding the redevelopment of the Waiakea Community Development District.

     Your Committee received testimony in support of this measure from the Department of Land and Natural Resources; Hawaii Community Development Authority; Mayor of the County of Hawaiʻi; Department of Research and Development for the County of Hawaiʻi; Planning Department for the County of Hawaiʻi; Hawaiʻi Lodging & Tourism Association; and three individuals.  Your Committee received testimony in opposition to this measure from Na Wai Hoʻola Nui Laʻau Lapaʻau Foundation; Waiākea Crown Land Heirs; Keaukaha Action Network; Truth for the People; and eight individuals.  Your Committee received comments on this measure from the Office of Hawaiian Affairs; Banyan Drive Hawaii Redevelopment Agency; and one member of the Maui County Council.

     Your Committee has amended this measure by reverting to the contents of this measure as it was introduced, which:

     (1)  Establishes the Banyan Drive-Makaokū Community Development District;

     (2)  Includes representatives of the District, including a lineal descendant of the Makaokū area, among the membership of the Hawaii Community Development Authority;

     (3)  Establishes the Banyan Drive-Makaokū Redevelopment Agency as an entity within the Hawaii Community Development Authority;

     (4)  Establishes the Banyan Drive-Makaokū Community Development District Special Fund; and

     (5)  Specifies the powers and duties of the Hawaii Community Development Authority as it relates to the Banyan Drive-Makaokū Community Development District.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2616, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2616, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

STAND. COM. REP. NO.  708-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 2616

      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 H.B. No. 2616 entitled:

"A BILL FOR AN ACT RELATING TO THE BANYAN DRIVE-MAKAOKŪ COMMUNITY DEVELOPMENT DISTRICT,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish the Banyan Drive-Makaokū Community Development District and Banyan Drive-Makaokū Redevelopment Agency as an entity within the Hawaii Community Development Authority;

     (2)  Establish the Banyan Drive-Makaokū Community Development District Special Fund; and

     (3)  Specify the powers and duties of the Hawaii Community Development Authority as it relates to the Banyan Drive-Makaokū Community Development District and amend the composition of the Hawaii Community Development Authority to include representatives of the Banyan Drive-Makaokū Community Development District.

     Your Committee received testimony in support of this measure from the Department of Land and Natural Resources; Office of the Mayor of the County of Hawaiʻi; Department of Research and Development of the County of Hawaiʻi; Hawaiʻi Island Chamber of Commerce; Pacific Resource Partnership; Captain Kimo's Hawaiian Adventures; McCully Works; Na Wai Hoʻola Nui Laʻau Lapaʻau Foundation; Wai Pacific; numerous individuals; and a petition with numerous individuals.  Your Committee received comments on this measure from the Office of Hawaiian Affairs; Hawaii Community Development Authority; Ka Lāhui Hawaiʻi; and one individual.

     Your Committee finds that the Waiakea peninsula, which includes Banyan Drive and was historically known as Makaokū, holds historic and cultural significance to the island of Hawaii.  Your Committee also finds, however, that this area requires focused revitalization to address existing conditions of blight, which have hindered the area's potential and diminished its value to the community.  Your Committee further finds that this measure seeks to regain state control over lands within the district and provide continuing oversight and maintenance of the district, which are essential for the successful renewal and transformation of this important area.

     Your Committee has amended this measure by:

     (1)  Changing the name of the Banyan Drive-Makaokū Community Development District to the Waiakea Community Development District;

     (2)  Changing the name of the Banyan Drive-Makaokū Community Development District Special Fund to the Waiakea Community Development District Special Fund;

     (3)  Clarifying the boundaries of the Waiakea Community Development District;

     (4)  Deleting the proposed Banyan Drive-Makaokū Redevelopment Agency;

     (5)  Including the Chairperson of the Banyan Drive Hawaii Redevelopment Agency of the County of Hawaii, or a designee as a member of the Hawaii Community Development Authority, including as a voting member of the Authority for matters affecting the Waiakea Community Development District;

     (6)  Removing a lineal descendant of the Makaokū area as a voting member of the Hawaii Community Development Authority for matters affecting the Waiakea Community Development District;

     (7)  Requiring the Hawaii Community Development Authority to establish a Community Advisory Council, to consist of community stakeholders who are selected by the Authority and include at least one lineal or cultural descendant with ties to the Waiakea ahupuaa, who shall be selected with input from the Office of Hawaiian Affairs, to provide guidance and ensure effective citizen participation in the redevelopment of the Waiakea Community Development District;

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

     (9)  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 H.B. No. 2616, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2616, H.D. 1, and be referred to your Committee on Finance.

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