Hawaii GM 1131: Informing the Legislature that on May 22, 2026, the Governor signed the following bill into law: SB3218 SD2 HD2 CD1 (ACT 031).

Bill Text

JOSH GREEN, M.D. 
GOVERNOR 
KE KIA'AINA
GOV.MSGJa 1131
EXECUTIVE CHAMBERS
KE KE'ENA 0 KE KIA'AINA
May 22, 2026
The Honorable Ronald D. Kouchi 
President of the Senate, 
and Members of the Senate
Thirty-Third State Legislature 
State Capitol, Room 409
Honolulu, Hawai'i 96813
The Honorable Nadine K. Nakamura 
Speaker, and Members of the
House of Representatives 
Thirty-Third State Legislature 
State Capitol, Room 431
Honolulu, Hawaii 96813
Aloha President Kouchi, Speaker Nakamura, and Members of the Legislature:
This is to inform you that on May 22, 2026, the following bill was signed into law:
S.B. NO. 3218, S.D. 2, H.D. 2, RELATING TO BONDS.
C D. 1 ACT 031
Mahalo,
Josh Green, M.D.
Governor, State of Hawaii

3218
S.D. 2
H.D. 2
C.D. 1
Approved by the Governor 
.n may 2 2 2026
THE SENATE
THIRTY-THIRD LEGISLATURE. 2026
STATE OF HAWAII
ACT 031
S.B. NO.
A BILL FOR AN ACT
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RELATING TO BONDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. Section 46-102, Hawaii Revised Statutes, is 
amended as follows:
1. By adding two new definitions to be appropriately 
inserted and to read:
'"’Resilient infrastructure for shelter and equity bonds" 
has the same meaning as in article VII, section 12, of the 
Hawaii State Constitution that are issued pursuant to this part.
"Transit-oriented development zone" means:
(1) For a county with a population of five hundred 
thousand or more:
(A) A transit-oriented development infrastructure 
improvement program area pursuant to section 
206E-243;
(B) A transit-oriented development special district 
established by county ordinance; or
2026-2347 SB3218 CDl SMA-l.docx

3218
S.D. 2
H.D. 2
C.D. 1
Page 2
S.B. NO.
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(C) An area within a one-half-mile radius of a public 
transit center or bus hub, as designated by the 
county; or
(2) For a county with a population of less than five 
hundred thousand;
(A) A county-designated transit area;
(B) An area situated along major bus routes; or
(C) An area within a one-half-mile radius of a bus 
stop, as designated by the respective county."
2. By amending the definitions of "adjustment rate", 
"assessment base", and "assessment increment" to read:
""Adjustment rate" means a percentage rate or rates of 
adjustment of the assessment base determined by the director of 
finance at the time the [tax incrGmcnt] resilient infrastructure 
for shelter and equity district is established, based on the 
historical and projected increases to the assessed values of 
taxable real property within the boundary of the [tax iner-emcnt] 
resilient infrastructure for shelter and equity district and the 
projected cost increases to the county for servicing the new 
developments within the [tax- ■incromont] resilient infrastructure 
for shelter and equity district.
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S.B. NO.
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CD. 1
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"Assessment base" means the total assessed values of all 
taxable real property in a [tax in-creme nt] resilient 
ijif\ra^t ructjijre f£r shelt^r and e3ui^ district as most recently 
certified by the director of finance on the date of creation of 
the [tax incrcmont] resilient infrastructure for shelter and 
equity
 district.
"Assessment increment" means the amount by which the 
current assessed values of taxable real property located within 
the boundaries of a [tax inoromGRt] resilient infrastructure for 
shelter and equity district exceeds its assessment base."
3. By amending the definitions of "council" and "county" 
to read:
""Council" means the council of the county in which a [tax- 
incrcniGnt] resilient infrastructure for shelter and equity 
district is situated.
"County" has the same meaning as [aet forth] in
section 1-22 and means the county in which a [tax-increment] 
resilient infrastructure for shelter and equity district is 
situated."
4. By amending the definition of "project costs" to read:
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C.D. 1
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""Project costs" means expenditures made or estimated to be 
made or monetary obligations incurred or estimated to be 
incurred by the agency that are listed in a [fe-ox—increment] 
resilient infrastructure for shelter and equity financing plan 
as costs of public works or public improvements in a [tex- 
increment] resilient infrastructure for shelter and equity 
district, plus other costs incidental to the expenditures or 
obligations. Project costs include:
(1) Capital costs, including the actual costs of the 
construction of public works or public improvements, 
new buildings, structures, and fixtures; the actual 
costs of the demolition, alteration, remodeling, 
repair, or reconstruction of existing buildings, 
structures, and fixtures; and the actual costs of the 
acquisition, clearing, and grading of land;
(2) Financin