House committee advances suite of bills on Hawaiian affairs, sends most to finance after amendments

The House Committee on Judiciary & Hawaiian Affairs on Jan. 31 moved a package of bills related to Native Hawaiian programs, Hawaiian-language law, and Hawaiian Homes administration to later consideration, sending most measures to the Finance Committee after technical edits or deferrals.

The committee approved House Bill 410, the biennial budget request for the Office of Hawaiian Affairs (OHA), advancing it to the House Finance Committee with technical amendments and a deferred effective date for further review.

OHA testimony described a proposed rise in its operating request to cover inflation and to fund a new strategy and implementation team. An OHA representative told the committee the agency seeks funding to hire 13 staff “to ensure that we can put forth our strategic plan with fidelity,” and to better coordinate with state departments on programs that serve Native Hawaiians. The representative said OHA’s $60,000,000 budget is small relative to the state’s overall spending and that the agency is not receiving the full share of public-land trust revenues it believes it is owed.

Committee members questioned OHA about public-land-trust accounting. The OHA representative recounted a 2016 audit that showed higher owed payments, and described problems with the Public Land Trust Information System (PLTIS), including weak controls and low reporting compliance from other state agencies. The representative said there is a pending inventory bill and proposed a combined state/OHA appropriation to begin an accurate inventory of public-land-trust revenues.

The committee also considered a mix of other measures:

- House Bill 304 would make the Hawaiian-language version of a law controlling when the statute was originally drafted in Hawaiian (subject to limits recommended by the Attorney General). The committee adopted AG-recommended clarifying language and moved the bill on for further review.

- House Bill 603 would authorize a Native Hawaiian marketing label and program. OHA supported the intent but recommended the bill fund a stakeholder working group and delayed a full appropriation until Consumer Protection & Commerce and Finance committees consider program design and enforcement. The committee amended the bill to remove a direct appropriation and to direct OHA to convene a working group, then moved it forward.

- House Bill 1091 would require counties to accept licensed or dedicated county responsibility for county sewer transmission lines on Hawaiian Home Lands within 60 days of a completed application for maintenance. Department of Hawaiian Homelands (DHHL) said the tighter timeline would improve slow responses from counties; the committee approved the measure with a technical change to align the text with the bill title.

- House Bill 1239 would explicitly authorize the Hawaiian Homes Commission to retain independent legal counsel. The Department of the Attorney General opposed the bill, citing the AG’s role and existing mechanisms that require AG and governor involvement; DHHL said independent counsel is sometimes needed when the Commission’s interests conflict with the state’s. The committee moved the bill forward and asked Finance to consider funding and related concerns.

- House Bill 1351 would raise the state’s liability cap for loans guaranteed under the Hawaiian Homes Commission Act from $100 million to $500 million. DHHL said the increase would support larger borrowing for projects tied to Act 279; the committee advanced the bill but asked the Finance Committee to work with Budget and Finance on liability impacts.

- House Bill 1362 would appropriate funds to expand sewer infrastructure at Kealoha homestead to address wastewater discharges near the ocean. DHHL requested $8 million for surveys, inspections and upgrades; the committee removed the specific appropriation from the bill text and placed the requested amount into the standing committee report for further consideration, and moved the bill on with the effective date deferred.

- House Bill 1457 would authorize DHHL to seek tax-increment financing districts to support infrastructure on Hawaiian Home Lands. The Attorney General cautioned the measure could raise constitutional questions because Article VIII, section 3, gives counties primary authority over property taxation. The committee amended the bill to require DHHL to apply to counties for tax-increment financing rather than unilaterally establishing districts, and sent it on for further review.

- House Bill 871 corrects an earlier enactment of the Hawaiian Homes Commission Act to clarify the effective date depending on the Secretary of the Interior’s determination or congressional action; the committee advanced the clean-up bill.

- House Bill 1090, a proposal to cap county user fees charged to DHHL at $100,000 per county per year, prompted questions from county water and finance representatives. The Board of Water Supply and Tax Foundation testified this would shift costs onto other ratepayers. The committee deferred HB 1090 to Feb. 5 and requested DHHL provide county-specific fee data and clarify which charges would be affected.

Votes at a glance

- HB410 (OHA operating appropriation): Committee recommendation adopted. Recorded ayes include Chair David Tarnas; Vice Chair Maghina Poipoi; Representatives Belotti, Kahalua, Peruso, Takayama, Garcia and Shimizu. Representatives Cochran, Todd and Hashem were excused. Outcome: approved to finance with technical amendments.

- HB304 (Hawaiian-language statutory interpretation): Committee recommendation adopted with Attorney General’s suggested proviso clarifying application to laws originally drafted in Hawaiian that have not been later amended, codified, recodified or reenacted in English. Outcome: approved to next committees.

- HB603 (Native Hawaiian marketing/label): Committee adopted technical amendments, removed a direct appropriation, directed OHA to convene a working group, and advanced the measure to CPC and Finance.

- HB1091 (Sewer transmission lines on Hawaiian Home Lands): Committee adopted a title-consistent technical amendment and advanced the bill.

- HB1239 (Independent legal counsel for Hawaiian Homes Commission): Committee advanced the bill and asked Finance to address funding and the Attorney General’s concerns.

- HB1351 (Increase state liability cap under HHC Act): Committee advanced the bill and placed a standing-committee-note for Finance about Budget and Finance concerns on debt limits and state liability.

- HB1362 (Kealoha sewer upgrades): Committee advanced the bill, removed the appropriation amount from the bill text, and recorded DHHL’s requested amount of $8,000,000 in the standing committee report for further consideration.

- HB1457 (Tax-increment financing authority): Committee amended to require DHHL to apply to counties for tax-increment financing and advanced the bill; Representative Garcia recorded a “no” on final action.

- HB871 (Technical fix to Hawaiian Homes Commission Act implementation): Committee advanced the bill.

- HB1090 (Cap on county user fees for DHHL): Deferred to Feb. 5 for additional county fee data and consultation; not advanced.

Why it matters

The package touches on budget priorities, land and water infrastructure, and the legal framework for Hawaiian-language statutes and Hawaiian Homes operations. OHA’s budget and the PLTIS inventory work are intended to inform how public-land-trust revenues are accounted for and distributed; Hawaiian Homes bills reflect ongoing efforts to accelerate housing and infrastructure for beneficiaries while clarifying governance and funding tools. County fee caps and tax-increment financing proposals drew questions about cost shifts and constitutional roles that will require Finance and county-level consultation.

What’s next

Most bills were amended and sent to the Finance Committee or referred to additional committees for more detailed review. The committee deferred one bill (HB1090) to allow DHHL to submit county-level fee figures and to give counties a chance to respond. The committee also placed several appropriations or dollar requests into standing committee reports rather than in bill text so Finance can review fiscal impacts.