Hawaii-2021-HB774-Amended

PART I

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

"Part . PULEHUNUI COMMUNITY DEVELOPMENT DISTRICT

§206E-A Pulehunui community development district; purpose; findings. The legislature finds that public lands in Pulehunui, Maui, are underutilized. Redeveloping, renovating, or improving these public lands to provide suitable recreational, residential, educational, industrial, governmental, and commercial areas where the public can live, congregate, recreate, attend schools, and shop as part of a thoughtfully integrated experience is in the best interest of the State.

§206E-B Definitions. As used in this part, unless the context otherwise requires:

"District" means the Pulehunui community development district established by this part.

"District authority board" means the Pulehunui community development district board established by section 206E- .

§206E-C District; established; boundaries. The Pulehunui community development district is established and shall be composed of the following properties:

(1) TMK 2-3-8-008-001;

(2) TMK 2-3-8-008-007;

(3) TMK 2-3-8-008-037; and

(4) TMK 2-3-8-009-038.

§206E-D Development policies. The following development policies shall govern the district authority board's actions in the district:

(1) The district authority board may engage in planning, designing, and construction activities within and outside the district; provided that activities outside the district shall be those the district authority board deems necessary to carry out the development of the district established in this part, including infrastructure development, area-wide drainage improvements, roadway realignment and improvements, business and industrial relocation, and other related activities. The district authority board may undertake studies or coordinating activities in conjunction with the county or appropriate state agencies and may address facility systems, the need for industrial relocation, and other issues;

(2) Archaeological, historical, and cultural sites shall be preserved and protected in accordance with chapter 6E;

(3) Endangered species of flora and fauna shall be preserved to the extent required by law;

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

(5) Public facilities within the district shall be planned, located, and developed to support the development policies established by this part and any rules adopted pursuant to this chapter.

§206E-E Financial aid from and contracts with the federal government. (a) The district authority board may:

(1) Borrow money or accept grants from the federal government for or in aid of any development project the district authority board 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 section;

(3) Repay any indebtedness incurred pursuant to this section, including any interest thereon;

(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 district authority board;

(5) Comply with any conditions required by the federal government in any contract for federal assistance; and

(6) Execute contracts with the federal government.

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

§206E-F Development district governance; memorandum of agreement. Notwithstanding section 206E-3, for matters affecting the district, the district authority board and the comptroller shall execute a memorandum of agreement with the appropriate state agencies; provided that for matters affecting TMK 2-3-8-008-037, the executive director of the Hawaii community development authority shall execute a memorandum of agreement with the appropriate state agencies.

§206E-G Annual comprehensive report. Not less than twenty days prior to the convening of each regular session of the legislature, the district authority board shall submit to the legislature an annual comprehensive report on the progress of development within the district."

PART II

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

"§206E- Community development district authority boards; established. (a) There are established community development district authority boards to govern each of the community development districts specified in chapter 206E. The district authority boards shall carry out the duties and responsibilities set forth in this chapter and as further delegated by the department of business, economic development, and tourism and the authority.

(b) Except as otherwise provided by law, the district authority boards may make and execute contracts and all other instruments necessary or convenient for planning and developing the respective community development districts.

(1) Financial assets;

(2) Real property, including land, structures, and fixtures; and

(3) Other physical assets, such as personal property, including furnishings, equipment, and inventory,

of the authority within its regional system.

No sale or encumbrance of any real property or other financial assets or physical assets of the authority shall be permitted without the mutual consent of the authority and the appropriate district authority board. No additional debts or liabilities or superior debts shall be added by the authority to any district authority board that would negatively impact the holders of bond notes. Each district authority board shall be liable for any liabilities arising from financial assets, real property, or personal property within its custodial care.

(d) Each district authority board shall comprise nine members to be appointed by the governor pursuant to section 26‑34, or as provided in this section, as follows:

(1) The governor shall appoint the following members from a list of three nominees submitted for each position by the president of the senate and a list of three nominees submitted for each position by the speaker of the house of representatives. When more than one member from a representative group is required, the governor shall appoint members from both lists. If only one member is required, the governor may appoint the member from either list. The appointed members shall serve for a term of four years; provided that the governor shall provide for staggered terms of the initially appointed voting members so that the initial terms of two members selected by lot shall be for two years, the initial terms of two members selected by lot shall be for three years, and the initial terms of the remaining member shall be for four years:

(A) Two residents of the district; provided that for any development district within the county of Maui, the members need not reside within the development district, but shall reside on the island of Maui;

(B) One cultural specialist; and

(C) Two members representing small businesses or non‑profit organizations located and operating in the respective development district; provided that for any development district within the county of Maui, the small businesses or non-profit organizations need not be located within the development district but shall be located and operating on the island of Maui;

(2) The director of planning and permitting of the county in which the community development district is located, or the director's designee, who shall serve for a term to run concurrently with the official's term of office; and

(3) The director of finance, or the director's designee; director of transportation, or the director's designee; and director of the office of planning, or the director's designee, who shall serve as ex officio, voting members for terms to run concurrently with each official's term of office.

(e) Each district authority board shall select one member to represent the community development district on the authority for a term to be determined by each district authority board.

(f) 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.

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

(h) Notwithstanding section 92-15, a majority of all eligible voting members as specified in this section shall constitute a quorum to do business, and the concurrence of a majority of all eligible voting members as specified in this section shall be necessary to make any action of a district authority board valid. Except as herein provided, no member appointed under this section shall be an officer or employee of the State or its political subdivisions.

(i) The members of each district authority board shall serve without compensation, but each shall be reimbursed for expenses, including travel expenses, incurred in the performance of their duties.

(j) 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. Section 206E-2, Hawaii Revised Statutes, is amended as follows:

1. By adding a new definition to be appropriately inserted and to read:

""District authority board" means a community development district authority board established by section 206E- ."

2. By amending the definition of "authority" to read:

""Authority" means the Hawaii community development authority established by section 206E-3[.], except if the context clearly indicates otherwise in this chapter."

SECTION 4. Section 206E-3, Hawaii Revised Statutes, is amended to read as follows:

"§206E-3 Hawaii community development authority; established. (a) There is established the Hawaii community development authority, which shall be a body corporate and a public instrumentality of the State, for the purpose of implementing this chapter. The authority shall be placed within the department of business, economic development, and tourism for administrative purposes.

[~~(b) The authority shall consist of~~ the director of finance or the director's designee; the director of transportation or the director's designee; a cultural specialist; an at-large member; an at-large member nominated by the senate president; an at-large member nominated by the speaker of the house; three representatives of the Heeia community development district, comprising two residents 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, nominated by the county council of the county in which the Heeia community development district is located; three representatives of the Kalaeloa community development district, comprising two residents 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, nominated by the county council of the county in which the Kalaeloa community development district is located; three representatives of the Kakaako community development district, comprising two residents of the district and one owner of a small business or one officer or director of a nonprofit organization in the district, nominated by the county council of the county in which the Kakaako community development district is located; the director of planning and permitting of each county in which a community development district is located or the director's designee, who shall serve in an ex officio, nonvoting capacity; and the chairperson of the Hawaiian homes commission or the chairperson's designee, who shall serve in an ex officio, nonvoting capacity.

All members except the director of finance, director of transportation, county directors of planning and permitting, and chairperson of the Hawaiian homes commission or their designees shall be appointed by the governor pursuant to section 26-34. The two at-large members nominated by the senate president and speaker of the house and the nine representatives of the respective community development districts shall each be appointed by the governor from a list of three nominees submitted for each position by the nominating authority specified in this subsection.

~~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 cultural specialist;~~

~~(D)~~ ~~The three at-large members; and~~

~~(E)~~ ~~The three representatives of the Heeia community development district;~~

provided that the director of planning and permitting of the relevant county or the director's designee shall participate in these matters as an ex officio, nonvoting member and shall not be considered in determining quorum and majority;

~~(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 cultural specialist;~~

~~(D)~~ ~~The three at-large members; and~~

~~(E)~~ ~~The three representatives of the Kalaeloa community development district;~~

provided that the director of planning and permitting of the relevant county and the chairperson of the Hawaiian homes commission, or their respective designees, shall participate in these matters as ex officio, nonvoting members and shall not be considered in determining quorum and majority;

~~(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 cultural specialist;~~

~~(D)~~ ~~The three at-large members; and~~

~~(E)~~ ~~The three representatives of the Kakaako community development district;~~

In the event of a vacancy, 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, and chairperson of the Hawaiian homes commission 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; provided that the initial terms of all voting members initially appointed pursuant to Act 61, Session Laws of Hawaii 2014, shall commence on March 1, 2015. 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 five members shall be for four years.]

(b) The authority shall oversee administration and staff and shall carry out the duties and responsibilities set forth in this chapter and as further delegated by the department of business, economic development, and tourism.

(1) One member from each of the community development district authority boards, to be selected by the members of each respective district authority board;

(2) Two at-large members having expertise in urban planning, infrastructure, or financing, one to be appointed by the governor from a list of three nominees submitted by the president of the senate and one from a list of three nominees submitted by the speaker of the house of representatives; and

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

(e) 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 which is independently owned and which is not dominant in its field of operation.~~

~~(c)~~] (f) The authority shall appoint the executive director who shall be the chief executive officer. The authority shall set the salary of the executive director, who shall serve at the pleasure of the authority and shall be exempt from chapter 76.

[~~(d)~~] (g) The authority shall annually elect the chairperson and vice chairperson from among its members.

[~~(e)~~] (h) The members of the authority [~~appointed~~] selected or designated under subsection [~~(b)~~] (c) shall serve without compensation, but each shall be reimbursed for expenses, including travel expenses, incurred in the performance of their duties."

SECTION 5. Section 206E-4, Hawaii Revised Statutes, is amended to read as follows:

"§206E-4 Powers; generally[.]; district authority boards; authority. (a) Except as otherwise [~~limited~~] provided by this chapter, [~~the authority may:~~] a district authority board, within its respective community development district may:

(1) Sue and be sued;

(2) Have a seal and alter the same at pleasure;

(3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

[~~(4)~~ ~~Make and alter bylaws for its organization and internal management;~~

~~(5)~~] (4) Make rules with respect to its projects, operations, properties, and facilities[~~, which rules shall be~~] in conformance with chapter 91;

[~~(6)~~ ~~Through its executive director appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapter 76;~~

~~(7)~~] (5) Prepare or cause to be prepared a community development plan for [~~all designated~~] its community development [~~districts;~~] district;

[~~(8)~~] (6) Acquire, reacquire, or contract to acquire or reacquire by grant or purchase real, personal, or mixed property or any interest therein; to own, hold, clear, improve, and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, or otherwise dispose of or encumber the same;

[~~(9)~~] (7) Acquire or reacquire by condemnation real, personal, or mixed property or any interest therein for public facilities, including but not limited to streets, sidewalks, parks, schools, and other public improvements;

[~~(10)~~] (8) By itself, or in partnership with qualified persons, acquire, reacquire, construct, reconstruct, rehabilitate, improve, alter, or repair or provide for the construction, reconstruction, improvement, alteration, or repair of any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of or encumber any project, and in the case of the sale of any project, accept a purchase money mortgage in connection therewith; and repurchase or otherwise acquire any project that the authority has theretofore sold or otherwise conveyed, transferred, or disposed of;

[~~(11)~~] (9) Arrange or contract for the planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, or other places, or for the furnishing of facilities or for the acquisition of property or property rights or for the furnishing of property or services in connection with a project;

[~~(12)~~] (10) Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on terms and conditions as it deems advisable;

[~~(13)~~] (11) Prepare or cause to be prepared plans, specifications, designs, and estimates of costs for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project, and from time to time to modify the plans, specifications, designs, or estimates;

[~~(14)~~] (12) Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

[~~(15)~~] (13) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

[~~(16)~~] (14) Contract for and accept gifts or grants in any form from any public agency or from any other source;

[~~(17)~~] (15) Do any and all things necessary to carry out its purposes and exercise the powers given and granted to a district authority board in this chapter; [~~and~~

~~(18)~~] (16) Allow satisfaction of any affordable housing requirements imposed by the district authority board upon any proposed development project through the construction of reserved housing, as defined in section 206E-101, by a person on land located outside the geographic boundaries of the [~~authority's~~] jurisdiction[;] of the district authority board; provided that the [~~authority~~] district authority board may permit cash payments in lieu of providing reserved housing. The substituted housing shall be located on the same island as the development project and shall be substantially equal in value to the required reserved housing units that were to be developed on site. The [~~authority~~] district authority board shall establish the following priority in the development of reserved housing:

(A) Within the community development district;

(B) Within areas immediately surrounding the community development district;

(D) In outlying areas within the same island as the development project[.

The Hawaii community development authority shall adopt rules relating to the approval of reserved housing that are developed outside of a community development district. The rules shall include, but are not limited to, the establishment of guidelines to ensure compliance with the above priorities.]; and

(17) Exercise all powers assigned in this part to the authority, except as otherwise provided.

(b) The authority may:

(1) Sue and be sued;

(2) Have a seal and alter the same at pleasure;

(3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

(4) Make rules with respect to its projects, operations, properties, and facilities, in conformance with chapter 91;

(5) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable; and

(6) Do any and all things necessary to carry out its purpose and exercise the powers given and granted in this chapter.

(1) Make and alter bylaws for the organization and internal management of the authority and district authority boards;

(2) Through its executive director, appoint officers, agents, and employees; prescribe their duties and qualifications; and fix their salaries, without regard to chapter 76; and

(3) Adopt rules relating to the approval of reserved housing that is developed outside of a community development district. The rules shall include the establishment of guidelines to ensure compliance with the priorities for reserved housing development as outlined in subsection (a)."

SECTION 6. Section 206E-4.1, Hawaii Revised Statutes, is amended to read as follows:

"[[]§206E-4.1[]] Assignment of powers and duties prohibited. Notwithstanding anything contained in this chapter to the contrary, the authority and district authority boards shall not assign to any person or agency, including the executive director of the authority, any of [~~its~~] the authority or district authority board's powers and duties related to the approval of any variance, exemption, or modification of any provision of a community development plan or community development rules."

SECTION 7. Section 206E-1, Hawaii Revised Statutes, is repealed.

["~~§206E-1 Findings and purpose.~~ The legislature finds that many areas of the State are substantially undeveloped, blighted, or economically depressed, and are or are potentially in need of renewal, renovation, or improvement to alleviate such conditions as dilapidation, deterioration, age, and other such factors or conditions which make such areas an economic or social liability.

The legislature further finds that there exists within the State vast, unmet community development needs. These include, but are not limited to, a lack of suitable affordable housing; insufficient commercial and industrial facilities for rent; residential areas which do not have facilities necessary for basic liveability, such as parks and open space; and areas which are planned for extensive land allocation to one, rather than mixed uses.

It is further determined that the lack of planning and coordination in such areas has given rise to these community development needs and that existing laws and public and private mechanisms have either proven incapable or inadequate to facilitate timely redevelopment and renewal.

The legislature finds that a new and comprehensive authority for community development must be created to join the strengths of private enterprise, public development and regulation into a new form capable of long-range planning and implementation of improved community development. The purpose of this chapter is to establish such a mechanism in the Hawaii community development authority, a public entity which shall determine community development programs and cooperate with private enterprise and the various components of federal, state, and county governments in bringing plans to fruition. For such areas designated as community development districts, the legislature believes that the planning and implementation program of the Hawaii community development authority will result in communities which serve the highest needs and aspirations of Hawaii's people.

The legislature finds that the creation of the Hawaii community development authority, the establishment of community development districts, and the issuance of bonds pursuant to this chapter to finance public facilities serve the public interest and are matters of statewide concern."]

SECTION 8. Section 201H-23(a), Hawaii Revised Statutes, is amended by substituting the phrase "section 206E-4(16)" wherever the phrase "section 206E-4(18)" appears.

PART III

SECTION 9. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:

"§206E- Authority; defined. For the purposes of this part, "authority" means the Kakaako community development district authority board established by section 206E- ."

SECTION 10. Section 206E-34, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) There shall be established within the [~~Hawaii community development~~] authority a state cultural public market."

2. By amending subsection (c) to read:

"(c) The [~~Hawaii community development~~] authority shall:

(1) Designate and develop the state-owned land for the cultural public market;

(2) Accept, for consideration, input regarding the establishment of the cultural public market from the following departments and agencies:

(A) The department of agriculture;

(B) The department of business, economic development, and tourism;

(D) The department of labor and industrial relations; and

(E) The Hawaii tourism authority;

(3) Consider and determine the propriety of using public‑private partnerships in the development and operation of the cultural public market;

(4) Develop, distribute, and accept requests for proposals from private entities for plans to develop and operate the cultural public market; and

(5) Ensure that the Hawaiian culture is the featured culture in the cultural public market."

PART IV

SECTION 11. Section 206E-181, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Authority" means the Hawaii community development authority established by section 206E-3."

PART V

SECTION 12. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new section to part VII to be appropriately designated and to read as follows:

"§206E- Authority; defined. For the purposes of this part, "authority" means the Kalaeloa community development district authority board established by section 206E- ."

SECTION 13. Section 206E-191, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The [~~Hawaii community development~~] authority shall be the designated agency of the State to implement this part."

PART VI

SECTION 14. Section 206E-201, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Authority" means the Heeia community development district authority board established by section 206E- ."

PART VII

SECTION 15. Section 46-102 is amended by amending the definition of "redevelopment agency" or "agency" to read as follows:

""Redevelopment agency" or "agency" means an agency defined in section 53-1 [or], the Hawaii community development authority, or a community development district authority board as established pursuant to chapter 206E."

SECTION 16. Section 84-17, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) The financial disclosure statements of the following persons shall be public records and available for inspection and duplication:

(1) The governor, the lieutenant governor, the members of the legislature, candidates for and delegates to the constitutional convention, the trustees of the office of Hawaiian affairs, and candidates for state elective offices;

(2) The directors of the state departments and their deputies, regardless of the titles by which the foregoing persons are designated; provided that with respect to the department of the attorney general, the foregoing shall apply only to the attorney general and the first deputy attorney general;

(3) The administrative director of the State;

(4) The president, the vice presidents, the assistant vice presidents, the chancellors, members of the board of regents, and the provosts of the University of Hawaii;

(5) The members of the board of education and the superintendent, the deputy superintendent, the state librarian, and the deputy state librarian of the department of education;

(6) The administrative director and the deputy director of the courts;

(7) The administrator and the assistant administrator of the office of Hawaiian affairs; and

(8) The members of the following state boards, commissions, and agencies:

(A) The board of directors of the agribusiness development corporation established under section 163D-3;

(B) The board of agriculture established under section 26-16;

(D) The Hawaii community development authority and community development district authority boards established under [~~section 206E-3;~~] chapter 206E;

(E) The Hawaiian homes commission established under the Hawaiian Homes Commission Act of 1920, as amended, and section 26-17;

(F) The board of directors of the Hawaii housing finance and development corporation established under section 201H-3;

(G) The board of land and natural resources established under section 171-4;

(H) The state land use commission established under section 205-1;

(I) The legacy land conservation commission established under section 173A-2.4;

(J) The natural area reserves system commission established under section 195-6;

(K) The board of directors of the natural energy laboratory of Hawaii authority established under section 227D-2;

(L) The board of directors of the Hawaii public housing authority established under section 356D‑3;

(M) The public utilities commission established under section 269-2; and

(N) The commission on water resource management established under section 174C-7."

SECTION 17. Section 171-2, Hawaii Revised Statutes, is amended to read as follows:

"§171-2 Definition of public lands. "Public lands" means all lands or interest therein in the State classed as government or crown lands previous to August 15, 1895, or acquired or reserved by the government upon or subsequent to that date by purchase, exchange, escheat, or the exercise of the right of eminent domain, or in any other manner; including lands accreted after May 20, 2003, and not otherwise awarded, submerged lands, and lands beneath tidal waters that are suitable for reclamation, together with reclaimed lands that have been given the status of public lands under this chapter, except:

(1) Lands designated in section 203 of the Hawaiian Homes Commission Act, 1920, as amended;

(2) Lands set aside pursuant to law for the use of the United States;

(3) Lands being used for roads and streets;

(4) Lands to which the United States relinquished the absolute fee and ownership under section 91 of the Hawaiian Organic Act prior to the admission of Hawaii as a state of the United States unless subsequently placed under the control of the board of land and natural resources and given the status of public lands in accordance with the state constitution, the Hawaiian Homes Commission Act, 1920, as amended, or other laws;

(5) Lands to which the University of Hawaii holds title;

(6) Lands to which the Hawaii housing finance and development corporation in its corporate capacity holds title;

(7) Lands to which the Hawaii community development authority and community development district authority boards in [~~its~~] their corporate [~~capacity holds~~] capacities hold title;

(8) Lands set aside by the governor to the Hawaii public housing authority or lands to which the Hawaii public housing authority in its corporate capacity holds title;

(9) Lands to which the department of agriculture holds title by way of foreclosure, voluntary surrender, or otherwise, to recover moneys loaned or to recover debts otherwise owed the department under chapter 167;

(10) Lands that are set aside by the governor to the Aloha Tower development corporation; lands leased to the Aloha Tower development corporation by any department or agency of the State; or lands to which the Aloha Tower development corporation holds title in its corporate capacity;

(11) Lands that are set aside by the governor to the agribusiness development corporation; lands leased to the agribusiness development corporation by any department or agency of the State; or lands to which the agribusiness development corporation in its corporate capacity holds title;

(12) Lands to which the Hawaii technology development corporation in its corporate capacity holds title; and

(13) Lands to which the department of education holds title;

provided that, except as otherwise limited under federal law and except for state land used as an airport as defined in section 262-1, public lands shall include the air rights over any portion of state land upon which a county mass transit project is developed after July 11, 2005."

SECTION 18. Section 171-64.7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Notwithstanding any law to the contrary, no sale of lands described in subsection (a) in fee simple including land sold for roads and streets, or gift of lands described in subsection (a) in fee simple to the extent such gift is otherwise permitted by law, shall occur without the prior approval of the sale or gift by the legislature by concurrent resolution to be adopted by each house by at least a two-thirds majority vote of the members to which each house is entitled in a regular or special session at which a concurrent resolution is submitted for approval of the sale; provided that the provisions of this section shall not apply to remnants, as that term is defined in section 171-52, or portions thereof; provided further that this section shall not apply to the issuance of licenses, permits, easements, and leases executed in conformance with the laws applicable to the lands listed in subsection (a); provided further that this section shall not apply to non-ceded lands conveyed to the University of Hawaii after December 31, 1989, to which the University of Hawaii holds title; provided further that this section shall not apply to reserved housing, as that term is defined in section 206E-101, conveyed by the Hawaii community development authority[.] or community development district authority boards."

PART VIII

SECTION 19. All rules, policies, procedures, guidelines, and other materials adopted or developed by the Hawaii community development authority prior to July 1, 2022, that implement provisions of the Hawaii Revised Statutes shall remain in full force and effect until amended or repealed by the Hawaii community development authority or a community development district authority board pursuant to chapter 91, Hawaii Revised Statutes.

SECTION 20. All actions taken by the Hawaii community development authority prior to July 1, 2022, shall remain in full force and effect until amended or repealed by the Hawaii community development authority or a community development district authority board.

PART IX

SECTION 21. 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 22. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 23. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 24. This Act, upon its approval, shall take effect as follows:

(1) The following shall take effect on July 1, 2021:

(A) Parts I, VIII, and IX; and

(B) Any amendments made to chapter 206E, Hawaii Revised Statutes, pursuant to parts II and IV, and to sections 46-102, 84-17, 171-2, and 171‑64.7, Hawaii Revised Statutes, by part VII of this Act that are deemed by the Hawaii community development authority to be necessary and appropriate to establish and operate the Pulehunui community development district established in part I of this Act;

provided that it is the intent of the legislature that the application of those amendments made to the Hawaii Revised Statutes by those parts shall be effective only insofar as they directly relate to the establishment and operation of the Pulehunui community development district until the remainder of this Act takes effect; and

(2) All other provisions of this Act shall take effect on July 1, 2022.

HOUSE OF REPRESENTATIVES	H.B. NO.	774
THIRTY-FIRST LEGISLATURE, 2021		H.D. 1
STATE OF HAWAII		S.D. 2
		C.D. 1