Hawaii Bills

This bill establishes the Banyan Drive Community Development District in Hawaii to revitalize the Waiakea peninsula, an area facing issues like blight and poor infrastructure. The legislation creates a special fund to provide consistent financial resources for the state agency responsible for managing the district, ensuring long-term maintenance and improvement. Under the new district, development must prioritize preserving Hawaiian cultural and historic sites while encouraging diverse land uses and private investment. The defined boundaries include lands near Wailoa River, Kalanianaole Street, and Reeds Bay, as well as Moku Ola, or Coconut Island. Ultimately, the act aims to transform the area into a center for cultural enrichment, public facilities, and sustainable economic growth.

This bill, signed into law as Act 215, shifts the authority to approve general excise tax exemptions for affordable housing projects from individual counties to the state's Hawaii Housing Finance and Development Corporation. Beginning January 1, 2027, the state agency will certify these tax incentives for developments that utilize county housing programs, aiming to better offset rising construction costs and interest rates. The legislation also grants counties expanded powers to develop, finance, and construct low- and moderate-income housing, including the ability to make loans, guarantee mortgages, and acquire land, while prohibiting counties from issuing state general obligation bonds for such projects. These changes are designed to leverage both state and local resources to address Hawaii's ongoing housing shortage by streamlining the approval process for affordable rental housing.

This bill, signed into law as Act 212, establishes a new Rental Housing Revolving Fund to support the development, construction, and preservation of affordable rental housing in Hawaii. The fund will be administered by the state corporation and can be financed through legislative appropriations, conveyance taxes, private donations, loan repayments, and interest. It provides various forms of financial assistance, including loans, equity investments, and credit enhancement, with a specific priority given to projects that include a significant number of very low-income units. The legislation also defines a "mixed-income rental project" as a development offering units to households at different income levels, primarily those earning at or below 140% of the area median income.

This bill establishes a framework for creating regional shoreline mitigation districts to address coastal erosion and hazards threatening Hawaii's beaches and infrastructure. It empowers the Office of Planning and Sustainable Development to identify these districts and facilitate collaborative planning among state and county agencies, property owners, and community groups. The legislation requires the development of adaptation pathways plans that assess risks to public resources and private structures while exploring various solutions, such as erosion mitigation or managed retreat. Importantly, designating a district is for planning purposes only and does not approve any specific projects or shoreline changes.

This bill officially establishes a legal framework for conservation banks in Hawaii, which are designated sites used to restore or protect habitats for threatened and endangered species. The law authorizes public and private entities to operate these banks to provide long-term environmental protection and requires the Endangered Species Recovery Committee to oversee their applications and performance. By defining specific terms like "credits" and outlining rules for maintaining these sites, the legislation aims to make environmental mitigation projects more predictable and efficient for developers who need to offset impacts to wildlife.

This message informs the Hawaii Legislature that Governor Josh Green signed HB1920 into law on July 8, 2026. The bill amends state tax statutes to allow taxpayers to claim a low-income housing tax credit regardless of their eligibility for the federal version of the same credit. It also permits partnerships and limited liability companies to transfer or sell these tax credits to other taxpayers, even if those recipients do not own an interest in the qualifying building. The law takes effect immediately upon approval and includes specific provisions regarding how the credit can be allocated and transferred.

This bill amends the rules for the Hawaii Housing Finance and Development Corporation to address housing shortages by updating how "qualified residents" are defined and what restrictions apply to affordable housing units. It removes certain financial screening requirements that duplicate standard lender checks and allows deed-restricted units to be rented long-term after an initial occupancy period, rather than requiring perpetual owner-occupancy. The law also limits a qualified resident to owning a majority interest in no more than one dwelling property at a time, requiring the sale of any additional property within two years. These changes aim to reduce administrative burdens, prevent vacant investment holdings, and ensure that affordable housing remains available to local residents without unnecessarily restricting household mobility.

This bill appropriates $200,000 to the Department of Human Services to hire specialists who provide domestic violence training and consultation to child welfare staff across Hawaii. The funding is intended to help workers better identify and support families where domestic violence is a factor in child abuse or neglect reports. The program will offer both virtual and in-person guidance to improve how the agency handles these sensitive cases. The law takes effect on July 1, 2026, and applies to all child welfare offices in the state.

This bill directs the state to increase Medicaid funding for residential care services in community foster family homes and expanded adult residential care homes. The legislation appropriates $1.7 million for the 2026-2027 fiscal year to raise reimbursement rates to the "medium" level identified in a 2022 study, addressing previous funding gaps that hindered providers from offering employee benefits. The Department of Human Services must secure the maximum available federal matching funds and explore other private grants before spending the money. These changes are designed to help care providers operate sustainably and expand options for older Hawaiians who need long-term care closer to home.

This bill establishes a state-supported credit enhancement program designed to help local lenders provide smaller-dollar loans to small businesses in Hawaii. By creating a loan loss reserve funded through borrower fees, lender contributions, and state matching funds, the program aims to reduce financial risk for lenders and encourage them to offer affordable capital to entrepreneurs who might otherwise struggle to secure financing. The initiative specifically targets startups, sole proprietors, and very small employers to keep financial activity within the state and support business growth in geographically isolated and high-cost areas.

This bill, signed into law by the Governor of Hawaii on July 7, 2026, bans the sale of disposable electronic smoking devices statewide starting January 1, 2027. The legislation defines these devices as non-refillable units with non-rechargeable batteries intended for single use and prohibits any person or entity from selling, offering for sale, or distributing them. Violations of the ban are subject to a fine of up to $100 per day for each instance. The law aims to address environmental concerns such as plastic pollution, hazardous waste from lithium batteries, and fire risks associated with improper disposal of these products.

This bill clarifies that individuals with intellectual and developmental disabilities who are enrolled in specific Medicaid waiver programs can live in community care foster family homes without losing their waiver benefits. It amends state statutes to ensure that residency in these homes is not denied solely based on a person's disability status or their participation in a particular Medicaid program. The legislation also updates regulations for these homes, including requirements for caregiver age, continuing education, and limits on how long primary caregivers can be absent while maintaining staffing standards.