SB874 SD1

SECTION 1. Section 214, Hawaiian Homes Commission Act, 1920, as amended, is amended by amending subsection (a) to read as follows:

"(a) The department may make loans from revolving funds to any lessee or native Hawaiian to whom, or any cooperative association to which, a lease has been issued under section 207(a) of this Act or a license has been issued under section 207(c)(1)(B) of this Act. Such loans may be made for the following purposes:

(1) The repair or maintenance or purchase or erection of dwellings on any tract, and the undertaking of other permanent improvements thereon;

(2) The purchase of livestock, swine, poultry, fowl, aquaculture stock, and farm and aquaculture equipment;

(3) Otherwise assisting in the development of tracts and of farm, ranch, and aquaculture operations, including:

(A) The initial and on-going development, improvement, operation, and expansion of homestead farms, ranches, and aquaculture enterprises;

(B) The liquidation of indebtedness incurred for any of the foregoing purposes relating to farm loans aged less than five years;

(D) The planning, layout, and installation of soil and water conservation practices; and

(E) Providing relief and rehabilitation to homestead farmers and ranchers due to damage by rain and windstorms, droughts, tidal wave, earthquake, volcanic eruption, and other natural catastrophes, and for livestock disease, epidemics, crop blights, and serious effects of prolonged shipping and dock strikes;

(4) The cost of breaking up, planting, and cultivating land and harvesting crops, the cost of excavating or constructing aquaculture ponds and tanks, the purchase of seeds, fertilizers, feeds, insecticides, medicines, and chemicals for disease and pest control for animals, fish, shellfish, and crops, and the related supplies required for farm, ranch, and aquaculture operations, the erection of fences and other permanent improvements for farm, ranch, and aquaculture purposes and the expense of marketing; [~~and~~]

(5) To assist licensees in the operation or erection of theaters, garages, service stations, markets, stores, and other mercantile establishments, all of which shall be owned by native Hawaiians or by organizations formed and controlled by native Hawaiians[.]; and

(6) To provide loans to qualifying lessees for the purchase or lease of micro housing units for use on Hawaiian home lands; provided that:

(A) Each loan shall not exceed $125,000; and

(B) The department of Hawaiian home lands shall determine the criteria to be met by lessees in order to qualify for loans pursuant to this paragraph.

For purposes of this paragraph, "micro housing unit" means a dwelling unit with a total floor area of less than eight hundred square feet and that includes a bed, kitchen, kitchen sink, cooking and refrigeration appliances, and a partitioned-off bathroom containing a toilet and a bathtub or shower. "Micro housing unit" includes an accessory dwelling unit."

SECTION 2. There is appropriated out of the vacancy savings of the department of Hawaiian home lands the sum of $ or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 for the construction of micro housing units as defined in section 107- , Hawaii Revised Statutes, to be matched on a dollar-for-dollar basis by funds awarded through the Native Community Development Financial Institutions Program; provided that:

(1) The cost of construction of each micro housing unit shall not exceed $125,000;

(2) A micro housing unit may be constructed on an existing homestead lot upon which a home already exists; provided that the micro housing unit shall be occupied by another individual or family related to the existing lessee; and

(3) Native community development financial institutions participating pursuant to this section shall determine the criteria for lessees to qualify for applicable loans.

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

SECTION 3. There is appropriated out of the vacancy savings of the department of Hawaiian home lands the sum of $ or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 to build the general organizational capacity of native Hawaiian-controlled nonprofit housing developers; provided that each nonprofit housing developer is able to demonstrate a commitment to developing housing units on Hawaiian home lands.

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

SECTION 4. The provisions of the amendments made by this Act to the Hawaiian Homes Commission Act, 1920, as amended, are declared to be severable, and if any section, sentence, clause, or phrase, or the application thereof to any person or circumstances is held ineffective because there is a requirement of having the consent of the United States to take effect, then that portion only shall take effect upon the granting of consent by the United States and effectiveness of the remainder of these amendments or the application thereof shall not be affected.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2019; provided that section 1 shall take effect with the consent of the United States Congress.

THE SENATE	S.B. NO.	874
THIRTIETH LEGISLATURE, 2019		S.D. 1
STATE OF HAWAII