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GM 1248

Informing the Legislature that on June 25, 2026, the Governor signed the following bill into law: SB2598 HD1 CD1 (ACT 147).

2026 Regular Session

SB2598 CD1 authorizes broader use of state special and revolving funds for administration, operations, land acquisition, and strategic development programs to improve flexibility.

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Bill Summary · GM 1248

Summary of Bill: SB2598 HD1 CD1 (ACT 147) – Informing the Legislature of Enactment

1) Purpose and intent

  • The act authorizes additional flexibility for the executive branch to adapt to fluctuating federal policies and revenue projections.
  • It allows certain special or revolving funds to be used for administrative and operating costs of the related programs, enabling more agile responses to funding shifts.

2) Key provisions and changes

  • Section 2: Amendments to Section 163D-17, Hawaii Revised Statutes

    • Revisions to fund management language for the related corporation (the Hawaii state entities referenced in the bill) to permit:
    • Use of fund income to: 1) Purchase qualified securities issued by enterprises to raise seed capital. 2) Acquire interests or rights in land valuable to the State for agricultural production, infrastructure, irrigation, watershed protection, or other purposes aligned with the chapter; acquisition may include fee title or various easements, and is a public purpose for which public funds may be expended or advanced. 3) Pay operation, maintenance, and management costs of lands acquired (to protect or restore resources or enhance public access), with annual operating costs not to exceed 5% of the fund’s previous year revenues. 4) Pay debt service on state financial instruments related to land acquisitions. 5) Make grants, loans, and provide other forms of monetary assistance necessary to carry out the chapter. 6) Purchase securities allowed for fiduciaries in the State.
    • All appropriations, grants, contracts, and other funds not designated for the above purposes can be used to cover proper general expenses and the operating costs (personnel and other operating costs) of the corporation.
    • Net proceeds or revenues from operation, management, sale, lease, or other disposition of land or improvements on lands acquired or constructed under the chapter shall be deposited into or credited to the fund.

  • Section 3: Amendments to Section 206E-16 (Hawaii Community Development Special Fund)

    • Establishes/clarifies that receipts and revenues of the authority go into the Hawaii Community Development Special Fund.
    • Proceeds from the fund are to be used for the purposes of this chapter, including administration costs.

  • Section 4: Amendments to Section 206M-62 (Strategic Development Programs Revolving Fund)

    • Sets up the Strategic Development Programs Revolving Fund with diverse funding sources (appropriations, loan repayments, investment earnings, venture agreements, royalties, premiums/fees, etc.).
    • Specifies that moneys in the fund shall be used to administer and fund operations of strategic development programs and for other purposes necessary to carry out Part V of Chapter 206M.

  • Section 5: Amendments to Section 302A-1706 (School Facilities Special Fund)

    • The fund is to be administered by the Authority and used to fund school development, planning, or construction projects, including prekindergarten facilities, within the Authority’s jurisdiction, including operating costs.

  • Section 6: Repeal/formatting note

    • Statutory material is noted as bracketed/und demarcated; new material is underscored (formatting for the act).

  • Section 7: Effective date

    • The Act takes effect upon the Governor’s approval (which occurred June 25, 2026, per the governor’s signing notice).

3) Who/what is affected

  • State funds and entities governing land acquisition, agricultural and watershed-related land use, and related public benefits.
  • The Hawaii Community Development Authority (and related special funds) including:
    • Hawaii Community Development Special Fund
    • Strategic Development Programs Revolving Fund (206M)
    • School Facilities Special Fund (302A)
  • Programs and purposes under part V of Chapter 206M and related land/land-use operations.
  • Agencies or corporations that manage these funds and administer related programs.

4) Procedural and timeline aspects

  • The bill was introduced and passed through both chambers in May 2026.
  • It was signed into law by the Governor on June 25, 2026, and approved on that date (Act 147).
  • The act requires no additional immediate funding mechanism; instead, it expands permissible uses of existing funds to cover administration and operating costs and to enable more flexible investment and land-management actions.
  • Takes effect upon governor’s approval (i.e., retroactive to June 25, 2026, with official signing date noted).

5) Potential impacts and considerations

  • Pros:

    • Increased fiscal flexibility to respond to changing federal policy and revenue streams.
    • Potential to strengthen public land management, agriculture-related infrastructure, and conservation efforts.
    • Expanded mechanisms for seed capital investments, land acquisitions, and public access enhancements.
    • Clarified authority to use funds for administrative costs, potentially improving program efficiency.

  • Cons/Considerations:

    • Greater discretion in fund usage may require robust oversight to ensure funds are used in line with statutory purposes.
    • Annual operating cost cap (5% of prior year fund revenues for certain land management costs) provides a financial guardrail, but monitoring is needed to ensure compliance.
    • The broad use of funds for land acquisition and debt service could affect long-term liquidity and future fiscal planning.

Overall, SB2598 CD1 authorizes broader use of several special and revolving funds to support administration, operations, land-related public purposes, and strategic development programs, with built-in safeguards and defined uses.

Compiled from official sources — confirm details with the bill’s official record.

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