SB 2001: HCDA; Banyan Drive Hawaii Redevelopment Agency; Banyan Drive Community Development District; New Special Fund; Lineal Descendant; Powers and Duties; Appropriation

A BILL FOR AN ACT

RELATING TO THE BANYAN DRIVE 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 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 community development district

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

     "District" means the Banyan Drive community development district.

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

     §206E-     District established; boundaries.  The Banyan Drive community development district is 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, and rights-of-ways.

     §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 part.  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 community development district special fund.  (a)  There is established in the state treasury the Banyan Drive 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 Hawaii redevelopment agency; two representatives of the Banyan Drive 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); for the purposes of part      of this chapter only, a lineal descendant of the Waiakea ahupuaa; 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; the chairperson of the Banyan Drive Hawaii redevelopment agency; or, where relevant, their respective designees 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 office of Hawaiian affairs shall submit a list of at least three nominees to the governor to fill the lineal descendant of the Waiakea ahupuaa position.

     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 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 community development district is located or the director's designee;

          (F)  The chairperson of the Banyan Drive Hawaii redevelopment agency or the chairperson's designee;

          (G)  The cultural specialist;

          (H)  The two at-large members;

          (I)  A lineal descendant of the Waiakea ahupuaa; and

          (J)  The two representatives of the Banyan Drive 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; and chairperson of the Banyan Drive Hawaii redevelopment agency; or their respective designees 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 the 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 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 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 community development district special fund.

     SECTION 6.  There is appropriated out of the Banyan Drive 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 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 $125,000 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 Hawaii Redevelopment Agency; Banyan Drive Community Development District; New Special Fund; Lineal Descendant; Powers and Duties; Appropriation

Description:

Establishes the Banyan Drive Community Development District within the Hawaii Community Development Authority.  Establishes the Banyan Drive Community Development District Special Fund.  Specifies the powers and duties of HCDA as it relates to the District.  Amends the composition of HCDA to include representatives of the District, Chairperson of the Banyan Drive Hawaii Redevelopment Agency, and a lineal descendant of the Waiakea Ahupuaa.  Appropriates funds.  (CD1)

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 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 office of Hawaiian affairs shall submit a list of at least three nominees to the governor to fill the lineal descendant of the Makaokū area position.

     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 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 and Banyan Drive-Makaokū Redevelopment Agency 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 COMMUNITY DEVELOPMENT DISTRICT.

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

     SECTION 1.  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‑    Waiakea community development district; findings; purpose.  The legislature finds that the Waiakea peninsula area in east Hawaii island, which includes Banyan Drive, is underutilized.  The area lacks a sense of safety and security due to a lack of landscaping, the conditions of the banyan trees, the poor lighting, and other blight conditions that make for an unpleasant pedestrian experience.  In addition, the area is deficient in basic public facilities that support residents and visitors, including recreational, educational, and entertainment facilities.  Despite the current condition, the area has exceptional potential for revitalization.  The close proximity to the cruise ship terminal, Merrie Monarch Festival sites, and Hilo town makes the area suitable for economic and tourism development activities that foster community, promote cultural activities, and support economic sustainability.  Regaining state control over lands in the district in the near term is essential and necessary to revitalize the area.  Through the Hawaii community development authority, the area can be revitalized in such a way that hotel, commercial, public, and cultural uses can coexist while providing value to the island of Hawaii and the State.

     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.

     §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 established.  The district shall include the area bounded by the Wailoa river on the west; Kamehameha avenue, inclusive, from its intersection with the Wailoa river to Kalanianaole street on the south;  Kalanianaole street, inclusive, from Kamehameha avenue to its intersection with Banyan way on the southeast; Banyan way, inclusive, from Kalanianaole street to Reeds bay on the east; and all lands from any parcel in those boundaries makai to the ocean in addition to Moku Ola, also known as Coconut island, on the north.

     §206E‑    Development guidance policies.  (a)  The following development guidance policies shall generally 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 their development policies for the district established by this part and plans and rules adopted pursuant to this part;

     (5)  The design and siting of buildings shall consider the impacts of climate change, sea level rise, inundation risk, and climate-resilient development; 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 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 part.  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‑    Financial aid from the federal government; contracts with the federal government.  (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)  In addition, and supplemental to the powers granted to the authority under section 206E-4, the authority may:

     (1)  Borrow moneys or accept grants from the federal government in aid of or for any development project that 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‑    Additional powers.  In addition, and supplemental to the powers granted to the authority by law, 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 also 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 are 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 2.  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 the chairperson'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,] a representative of the Waiakea community development district who is an 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     of this chapter only, a representative of the Waiakea community development district who is a resident of the Waiakea ahupuaa (zone 2, sections 1, 2, or 4 of the third tax map key division) and who is also a lineal or cultural descendant with ties to the Waiakea ahupuaa; 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 the chairperson's 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[.], except that for the Waiakea community development district, the president of the senate and the speaker of the house of representatives shall each submit a list of three nominees to the governor to fill the small business or nonprofit organization representative position, and the office of Hawaiian affairs shall submit a list of three nominees to the authority for submission to the president of the senate and the speaker of the house of representatives to submit to the governor to fill the resident representative position.  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 the chairperson's 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 the chairperson's 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 the purposes of this section, "small business" means a business that is independently owned and that is not dominant in its field of operation."

     SECTION 3.  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 fiscal year 2026-2027 for the Hawaii community development authority to implement this Act and to:

     (1)  Adopt rules under chapter 91, Hawaii Revised Statutes, for purposes of this Act; and

     (2)  Prepare 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 4.  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 deposit into the Waiakea community development district special fund.

     SECTION 5.  There is appropriated out of the Waiakea community development district special fund 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 the Hawaii community development authority for the purposes of this Act.

     SECTION 6.  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 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on July 1, 3000.

Report Title:

HCDA; Waiakea Community Development District; Special Fund; Rules; Position; Appropriation

Description:

Establishes the Waiakea Community Development District and the Waiakea Community Development District Special Fund.  Specifies the powers and duties of the Hawaii Community Development Authority as it relates to the new development district.  Allows the Authority to establish rules.  Establishes one full-time equivalent (1.0 FTE) position within the Authority.  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 COMMUNITY DEVELOPMENT DISTRICT.

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

     SECTION 1.  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‑    Waiakea community development district; findings; purpose.  The legislature finds that the Waiakea peninsula area in east Hawaii island, which includes Banyan Drive, is underutilized.  The area lacks a sense of safety and security due to a lack of landscaping, the conditions of the banyan trees, the poor lighting, and other blight conditions that make for an unpleasant pedestrian experience.  In addition, the area is deficient in basic public facilities that support residents and visitors, including recreational, educational, and entertainment facilities.  Despite the current condition, the area has exceptional potential for revitalization.  The close proximity to the cruise ship terminal, Merrie Monarch Festival sites, and Hilo town makes the area suitable for economic and tourism development activities that foster community, promote cultural activities, and support economic sustainability.  Regaining state control over lands in the district in the near term is essential and necessary to revitalize the area.  Through the Hawaii community development authority, the area can be revitalized in such a way that hotel, commercial, public, and cultural uses can coexist while providing value to the island of Hawaii and the State.

     §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 established.  The district shall include the area bounded by the Wailoa river on the west; Kamehameha avenue, inclusive, from its intersection with the Wailoa river to Kalanianaole street on the south;  Kalanianaole street, inclusive, from Kamehameha avenue to its intersection with Banyan way on the southeast; Banyan way, inclusive, from Kalanianaole street to Reeds bay on the east; and all lands from any parcel in those boundaries makai to the ocean in addition to Moku Ola, also known as Coconut island, on the north.

     §206E‑    Development guidance policies.  (a)  The following development guidance policies shall generally 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 their development policies for the district established by this part and plans and rules adopted pursuant to this part;

     (5)  The design and siting of buildings shall consider the impacts of climate change, sea level rise, inundation risk, and climate-resilient development; 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 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 part.  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.

     (c)  The authority shall establish a community advisory

council to provide guidance and ensure effective citizen

participation in the redevelopment of the district.  The community advisory council shall consist of community stakeholders that are selected by the authority and include at least one lineal or cultural descendant with ties to the Waiakea ahupuaa that is selected in consultation with the office of Hawaiian affairs.

     §206E‑    Financial aid from the federal government; contracts with the federal government.  (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)  In addition, and supplemental to the powers granted to the authority under section 206E-4, the authority may:

     (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‑    Additional powers.  In addition, and supplemental to the powers granted to the authority by law, 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 also 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 are 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 2.  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, county of Hawaii or the chairperson'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,] two representatives of the Waiakea community development district, consisting of one resident of the Waiakea ahupuaa (zone 2, sections 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, county of Hawaii or the chairperson's 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, county of Hawaii or the chairperson's 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, county of Hawaii or the chairperson's 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 the purposes of this section, "small business" means a business that is independently owned and that is not dominant in its field of operation."

     SECTION 3.  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 fiscal year 2026-2027 for the Hawaii community development authority to implement this Act and to:

     (1)  Adopt rules under chapter 91, Hawaii Revised Statutes, for purposes of this Act; and

     (2)  Prepare 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 4.  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 deposit into the Waiakea community development district special fund.

     SECTION 5.  There is appropriated out of the Waiakea community development district special fund 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 the Hawaii community development authority for the purposes of this Act.

     SECTION 6.  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 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on July 1, 2050.

Report Title:

HCDA; Waiakea Community Development District; Special Fund; Rules; Position; Appropriation

Description:

Establishes the Waiakea Community Development District and the Waiakea Community Development District Special Fund.  Specifies the powers and duties of the Hawaii Community Development Authority as it relates to the new development district.  Allows the Authority to establish rules.  Establishes one full-time equivalent (1.0 FTE) position within the Authority.  Appropriates funds.  Effective 7/1/2050.  (SD1)

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 community development district.

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

     SECTION 1.  Chapter 206E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

     "PART   .  BANYAN DRIVE COMMUNITY DEVELOPMENT DISTRICT

     §206E-     Banyan Drive community development district; findings; purpose.  The legislature finds that the Waiakea peninsula area in east Hawaii island, which includes Banyan Drive, is underutilized.  The area lacks a sense of safety and security due to a lack of landscaping, the conditions of the banyan trees, the poor lighting, and other blight conditions that make for an unpleasant pedestrian experience.  In addition, the area is deficient in basic public facilities that support residents and visitors, including recreational, educational, and entertainment facilities.  Despite the current condition, the area has exceptional potential for revitalization.  The close proximity to the cruise ship terminal, Merrie Monarch Festival sites, and Hilo town makes the area suitable for economic and tourism development activities that foster community, promote cultural activities, and support economic sustainability.  Regaining state control over lands in the district in the near term is essential and necessary to revitalize the area.  Through the Hawaii community development authority, the area can be revitalized in such a way that hotel, commercial, public, and cultural uses can coexist while providing value to the island of Hawaii and the State.

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

     "District" means the Banyan Drive community development district.

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

     §206E-     District established; boundaries.  The Banyan Drive community development district is hereby established.  The district shall include the area bounded by the Wailoa river on the west; Kamehameha avenue, inclusive, from its intersection with the Wailoa river to Kalanianaole street on the south;  Kalanianaole street, inclusive, from Kamehameha avenue to its intersection with Banyan way on the southeast; Banyan way, inclusive, from Kalanianaole street to Reeds bay on the east; and all lands from any parcel in those boundaries makai to the ocean in addition to Moku Ola, also known as Coconut island, on the north.

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

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

     §206E-     Development guidance policies.  (a)  The following development guidance policies shall generally 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 their development policies for the district established by this chapter and plans and rules adopted pursuant to this chapter;

     (5)  The design and siting of buildings shall consider the impacts of climate change, sea level rise, inundation risk, and climate-resilient development; 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 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-     Financial aid from the federal government; contracts with the federal government.  (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)  In addition, and supplemental to the powers granted to the authority under section 206E-4, the authority may:

     (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-     Additional powers.  In addition, and supplemental to the powers granted to the authority by law, 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 also adopt rules pursuant to chapter 91 to implement the program.

     §206E-     Banyan Drive community development district special fund.  (a)  There is established in the state treasury the Banyan Drive 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 are 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 2.  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 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 community development district, consisting of one resident of the Waiakea ahupuaa (zone 2, sections 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 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 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 community development district is located or the director's designee;

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

          (G)  The cultural specialist;

          (H)  The two at-large members; and

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

          provided that for all matters involving the appointment or termination of the chairperson of the Banyan Drive Hawaii redevelopment agency, the member under subparagraph (F) shall not be considered a member.

     [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 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 3.  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 fiscal year 2026-2027 for the Hawaii community development authority to implement this Act and to:

     (1)  Adopt rules under chapter 91, Hawaii Revised Statutes, for purposes of this Act; and

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

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

     SECTION 4.  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 deposit into the Banyan Drive community development district special fund.

     SECTION 5.  There is appropriated out of the Banyan Drive community development district special fund 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 the Hawaii community development authority for the purposes of this Act.

     SECTION 6.  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 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on July 1, 2026.

Report Title:

Banyan Drive; Establishment of the Banyan Drive Community Development District; HCDA; Special Fund.

Description:

Establishes the Banyan Drive Community Development District and the Banyan Drive Community Development District Special Fund.  Specifies the powers and duties of the Hawaii Community Development Authority as it relates to the new development district.

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. 2961

Honolulu, Hawaii

RE:     S.B. No. 2001

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committees on Water, Land, Culture and the Arts and Ways and Means, to which was referred S.B. No. 2001 entitled:

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

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish the Banyan Drive Community Development District;

     (2)  Establish the Banyan Drive 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 Community Development District.

     Your Committees received testimony in support of this measure from the Department of Land and Natural Resources, Hawaii Community Development Authority, Office of the Mayor of the County of Hawaiʻi, Department of Research and Development of the County of Hawaiʻi, Hawaiʻi Lodging & Tourism Association, Hawaiʻi Island Chamber of Commerce, and two individuals.

     Your Committees received testimony in opposition to this measure from the Kupuna for the Moʻopuna and thirteen individuals.

     Your Committees received comments on this measure from the Office of Hawaiian Affairs and Banyan Drive Hawaiʻi Redevelopment Agency.

     Your Committees find that the Waiakea Peninsula, including Banyan Drive, is an underutilized area in Hilo that lacks appropriate landscaping and tree care, sufficient electrical lighting, and basic public facilities to support the leisure and welfare of residents and visitors.  Nonetheless, your Committees believe that the area has exceptional potential for revitalization due to it close proximity to Hilo's downtown, cruise ship terminal, and festival sites.  This measure will revitalize the Waiakea Peninsula, promote compatible economic and cultural uses of the area, and deliver lasting value for the island of Hawaii and the State.

     Your Committees acknowledge the recommendations offered in testimony by the Hawaii Community Development Authority that:

     (1)  The name of the proposed community development district should reflect its geographic location while strengthening the community's sense of place, and giving the district a name in Olelo Hawaii would align with other community development districts managed by the Hawaii Community Development Authority;

     (2)  The proposed establishment of a separate Banyan Drive Redevelopment Agency is unnecessary and conflicts with existing provisions that limit the voting membership of each community development district to a subset of the Hawaii Community Development Authority that includes the designated resident and small business representatives of that community;

     (3)  The Chairperson of the Banyan Drive Hawaii Redevelopment Agency or the Chairperson's designee should have an ex-officio position on the Hawaii Community Development Authority and be eligible to vote on matters affecting the proposed district; and

     (4)  The Hawaii Community Development Authority should establish a community advisory council with at least one lineal or cultural descendant with ties to the Waiakea ahupuaa to enable citizen guidance and participation in the redevelopment of the proposed district.

     Amendments to this measure are therefore necessary to address these concerns.

     Accordingly, your Committees have amended this measure by:

     (1)  Renaming the Banyan Drive Community Development District as the Waiakea Community Development District;

     (2)  Renaming the Banyan Drive Community Development District Special Fund as the Waiakea Community Development District Special Fund;

     (3)  Deleting language that would have established the Banyan Drive Redevelopment Agency and Chairperson and required the Agency to be an entity of the Hawaii Community Development Authority and responsible for implementing the language proposed by the measure;

     (4)  Inserting language that requires the Hawaii Community Development Authority to establish a community advisory council to provide guidance and ensure effective citizen participation in the redevelopment of the Waiakea Community Development District and requires the council to consist of community stakeholders that are selected by the Authority and include at least one lineal or cultural descendant with ties to the Waiakea ahupuaa that is selected in consultation with the Office of Hawaiian Affairs;

     (5)  Replacing the phrase "the chairperson of the Banyan Drive redevelopment agency" with the phrase "the chairperson of the Banyan Drive Hawaii redevelopment agency, county of Hawaii or the chairperson's designee" throughout the measure;

     (6)  Deleting language that would have required that, for all matters involving the appointment or termination of the Chairperson of the Banyan Drive Redevelopment Agency, the Chairperson not be considered a member of the Hawaii Community Development Authority when determining quorum and majority for, or when voting on, matters affecting the Banyan Drive Community Development District;

     (7)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

     Your Committees note the continuing desire for community engagement from lineal or cultural descendants with ties to the Waiakea ahupuaa and respectfully request that subsequent Committees to which this measure is referred consider this issue.

     As affirmed by the records of votes of the members of your Committees on Water, Land, Culture and the Arts and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2001, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2001, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Water, Land, Culture and the Arts and Ways and Means,