SB 2785: DHHL; Appropriation

A BILL FOR AN ACT

RELATING TO ECONOMIC DEVELOPMENT.

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

     SECTION 1.  The legislature finds that the State has prioritized climate change mitigation and sustainable tourism through Act 96, Session Laws of Hawaii 2025 (Act 96).  Act 96 enacted section 37-79, Hawaii Revised Statutes, which requires that additional general fund revenues associated with increased transient accommodations tax collections be requested in the executive budget and be expended equally across eligible projects that:

     (1)  Protect, manage, and restore the State's natural resources, including native forests, native plants and animals, aquatic resources, coastal lands, and freshwater resources;

     (2)  Increase the resilience of structures and infrastructure to natural and climate-related disasters, such as hurricanes and sea level rise, and perform hazard mitigation activities, such as wildfire and flood mitigation; and

     (3)  Improve the visitor experience, mitigate the impacts of tourism on the natural environment, ensure that the State's natural resources are maintained for future residents and visitors, and support destination management, such as park improvements and beach improvement, nourishment, and maintenance projects.

     The legislature further finds that the department of Hawaiian home lands manages numerous projects that meet the criteria established by Act 96; however, many of these projects lack sufficient funding.  Appropriating funds to support qualifying projects will protect the interests of beneficiaries of the Hawaiian Homes Commission Act, 1920, as amended, and advance State policy.

     Accordingly, the purpose of this Act is to appropriate funds for department of Hawaiian home land projects that meet the criteria established in Act 96 but may not be included in the executive budget request.

     SECTION 2.  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 following projects of the department of Hawaiian home lands:

     (1)  $169,000 for operation and maintenance of the potable water system in Kawaihae, Hawaii;

     (2)  $169,000 for the Puukapu non-potable improvements for the Waimea water system on Hawaii island;

     (3)  $10,000,000 for the Kailapa department of water supply waterline connection for Waimea, Hawaii;

     (4)  $7,017,000 for the Kokee ditch in Hanapepe, Kauai;

     (5)  $156,000 for the Piilani Mai Ke Kai ground maintenance fire break in Anahola, Kauai;

     (6)  $10,000 for ground maintenance of Leialii parkway landscape on Maui;

     (7)  $25,000 for ground maintenance of various drainage streams on Molokai;

     (8)  $74,000 for ground maintenance of dry stream beds on Molokai;

     (9)  $424,000 for drainage and fencing for Nanakuli phase two on Oahu;

    (10)  $10,000 for ground maintenance of the Nanakuli depot park on Oahu;

    (11)  $55,000 for maintenance of the detention basins in East Kapolei, Oahu;

    (12)  $6,000,000 for statewide firebreak maintenance;

    (13)  $2,500,000 for road channelization in Waimea – Lalamilo phase one, Kawaihae, Hawaii;

    (14)  $600,000 for fire hazards and erosion issues for Lalamilo preservation lands on Hawaii island;

    (15)  $617,000 for Laiopua brush clearing and maintenance in North Kohala, Hawaii;

    (16)  $300,000 for the Panaewa agricultural lot access road to remove invasive species and restore watershed on Hawaii island;

    (17)  $575,000 for gorse containment in Humuula, Hawaii;

    (18)  $250,000 for erosion and flood mitigation in Kawaihae, Hawaii;

    (19)  $150,000 for an emergency evacuation route in Kailapa, Kawaihae, Hawaii;

    (20)  $1,000,000 for firebreak and maintenance in Kawaihae, Hawaii;

    (21)  $500,000 for firebreak and maintenance in Laiopua, Hawaii;

    (22)  $1,000,000 for firebreak and maintenance in Puukapu, Hawaii;

    (23)  $1,000,000 for firebreak and maintenance in Kau/South Point, Hawaii;

    (24)  $155,000 for drought assistance in Kahikinui, Maui;

    (25)  $500,000 for firebreak and maintenance in Leialii, Maui;

    (26)  $1,000,000 for firebreak and maintenance in Keokea, Maui;

    (27)  $500,000 for firebreak and maintenance in Honokowai, Maui;

    (28)  $150,000 for evacuation route planning for Hanapepe, Kauai;

    (29)  $1,000,000 for firebreak and maintenance for Anahola, Kauai;

    (30)  $250,000 for firebreak and maintenance for Wailua, Kauai;

    (31)  $500,000 for flood mitigation for Kaunakakai-Kapaakea, Molokai;

    (32)  $50,000 for islandwide watershed protection for Kauluwai wells on Molokai;

    (33)  $150,000 for emergency evacuation routes in Kalamaula, Kapaakea, Molokai;

    (34)  $250,000 for wetland stabilization and restoration in Ohiapilo, Kalamaula, Molokai;

    (35)  $1,716,000 for Molokai mauka erosion mitigation for Kalamaula Mauka;

    (36)  $           public water systems pipeline replacement in Kalamaula, Molokai;

    (37)  $1,000,000 for firebreak and maintenance in Hoolehua, Molokai;

    (38)  $750,000 for firebreak and maintenance in Kalamaula, Molokai;

    (39)  $32,000,000 for sewer improvements for Princess Kahanu homestead in Nanakuli, Oahu;

    (40)  $2,000,000 for Kakaina and Kumuhau subdivision sewer repair in Waimanalo, Oahu;

    (41)  $24,000,000 for sewer remediation for Papakolea phase two in Honolulu, Oahu;

    (42)  $252,000 for islandwide tree trimming and removal on Oahu;

    (43)  $1,000,000 for firebreak and maintenance for Waianae Valley, Oahu;

    (44)  $1,000,000 for firebreak and maintenance for Nanakuli, Oahu;

    (45)  $500,000 for firebreak and maintenance for Lualualei, Mailiili, Oahu;

    (46)  $5,000,000 for statewide geothermal energy commercialization;

    (47)  $5,000,000 for statewide cesspool conversion and closure;

    (48)  $118,000 for statewide watershed management;

    (49)  $250,000 for statewide natural resource protection and studies;

    (50)  $100,000 for statewide financial assistance funds for community-led mitigation projects; and

    (51)  $120,000 for a statewide homestead Firewise support specialist.

     The sum appropriated shall be expended by the department of Hawaiian home lands for the purposes of this Act.

     SECTION 3.  This Act shall take effect on July 1, 2026.

Report Title:

DHHL; Appropriation

Description:

Appropriates funds for Department of Hawaiian Home Lands projects eligible for general fund revenues that are generated by increases in transient accommodations tax collections and intended to be expended equally across projects related to natural resources, climate resilience, and destination management.

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. 2272

Honolulu, Hawaii

RE:     S.B. No. 2785

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Hawaiian Affairs, to which was referred S.B. No. 2785 entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

     The purpose and intent of this measure is to appropriate funds for Department of Hawaiian Home Lands projects eligible for general fund revenues that are generated by increases in transient accommodations tax collections and intended to be expended equally across projects related to natural resources, climate resilience, and destination management.

     Your Committee received testimony in support of this measure from the Department of Hawaiian Home Lands and Ho'omana Pono, LLC.

     Your Committee received testimony in opposition to this measure from two individuals.

     Your Committee finds that the State has prioritized climate change mitigation and sustainable tourism through existing laws that fund projects related to natural resources, climate resilience, and destination management, including funds generated by increases in transient accommodations tax collections.  The Department of Hawaiian Home Lands manages numerous projects that meet this criteria and lack sufficient funding.  Your Committee further finds that appropriating funds for the Department of Hawaiian Home Lands to support qualifying projects will protect the interests of beneficiaries of the Hawaiian Homes Commission Act, as amended, and advance State policy.

     As affirmed by the record of votes of the members of your Committee on Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2785 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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