Hawaii Revised Statutes
171. Public Lands, Management and Disposition of
171-19 Special land and development fund.

§171-19 Special land and development fund. (a) There is created in the department a special fund to be designated as the "special land and development fund". Subject to the Hawaiian Homes Commission Act of 1920, as amended, and section 5(f) of the Admission Act of 1959, all proceeds of sale of public lands, including interest on deferred payments; all moneys collected under section 171-58 for mineral and water rights; all rents from leases, licenses, and permits derived from public lands; all moneys collected from lessees of public lands within industrial parks; all fees, fines, and other administrative charges collected under this chapter and chapter 183C; a portion of the highway fuel tax collected under chapter 243; all moneys collected by the department for the commercial use of public trails and trail accesses under the jurisdiction of the department; and private contributions for the management, maintenance, and development of trails and accesses shall be set apart in the fund and shall be used only as authorized by the legislature for the following purposes:
(1) To reimburse the general fund of the State for advances made that are required to be reimbursed from the proceeds derived from sales, leases, licenses, or permits of public lands;
(2) For the planning, development, management, operations, or maintenance of all lands and improvements under the control and management of the board pursuant to title 12, including but not limited to permanent or temporary staff positions who may be appointed without regard to chapter 76;
(3) To repurchase any land, including improvements, in the exercise by the board of any right of repurchase specifically reserved in any patent, deed, lease, or other documents or as provided by law;
(4) For the payment of all appraisal fees; provided that all fees reimbursed to the board shall be deposited in the fund;
(5) For the payment of publication notices as required under this chapter; provided that all or a portion of the expenditures may be charged to the purchaser or lessee of public lands or any interest therein under rules adopted by the board;
(6) For the management, maintenance, and development of trails and trail accesses under the jurisdiction of the department;
(7) For the payment to private land developers who have contracted with the board for development of public lands under section 171-60;
(8) For the payment of debt service on revenue bonds issued by the department, and the establishment of debt service and other reserves deemed necessary by the board;
(9) To reimburse the general fund for debt service on general obligation bonds issued to finance departmental projects, where the bonds are designated to be reimbursed from the special land and development fund;
(10) For the protection, planning, management, and regulation of water resources under chapter 174C; and
(11) For other purposes of this chapter.
(b) Notwithstanding the above provisions, but subject to the restrictions contained in section 5(f) of the Admission Act, whenever the board sells remnants to abutting owners, the proceeds therefrom including interest on deferred payments, shall be deposited into the general fund; provided that such proceeds shall be set apart to the appropriate fund where mandatory federal requirements affecting federal funds so require.
(c) Notwithstanding the above limitations on use of the proceeds of sale, where the board sells public lands including the buildings thereon once used but no longer necessary for school purposes at the recommendation and request of the board of education, all net proceeds derived from the sales shall be used for the acquisition of land or for the erection of buildings for school purposes to the extent of an approved building plan in the departmental school district wherein the sales occur. In the absence of any school building program in the district or in the event of any surplus remaining after the completion of buildings constructed pursuant to the approved plan then the proceeds or surplus shall be used in other departmental school districts in the county wherein the sales occur.
(d) When use of the fund is authorized by the legislature for the development of public lands for a particular project, to be disposed of by sale, lease, license, or permit, the board may pay from the fund the costs of the development, including the costs of surveys, construction of roads, water lines, sewer lines, and such other improvements as may be necessary for the development of the lands; provided that the project shall meet with the zoning and subdivision requirements of the appropriate county government in which the lands are located, except that plans and specifications for recreational projects, including access roads therefor, shall not be required to meet with such approval; and provided further that no such development of public lands for disposal by sale, lease, license, or permit shall be made unless appropriate roads, water lines, and other improvements are installed which will make the land usable for the purpose for which it is being disposed at the time of disposition.
(e) All unexpended and unencumbered moneys remaining on balance with the fund at the close of each fiscal year which are deemed, by the director of finance, to be in excess of the moneys necessary to carry out the purposes of this section over the next following fiscal year shall lapse to the credit of the state general fund. [L 1962, c 32, pt of §2; am L 1963, c 29, §1; am L 1964, c 35, §2 and c 49, §1; am L 1965, c 239, §40; Supp, §103A-19; am L 1967, c 234, §5; HRS §171-19; am L 1970, c 83, §1; am L 1976, c 50, §1; am L 1981, c 82, §17; am L 1985, c 40, §1; am L 1988, c 361, §3; am L 1989, c 25, §1; am L 1993, c 280, §53; am L 1997, c 106, §1; am L 1999, c 160, §16; am L 2000, c 122, §1, c 203, §1, and c 253, §150; am L 2003, c 113, §1; am L 2010, c 209, § §2, 5; am L 2015, c 117, §2 and c 121, §5; am L Sp 2021, c 1, §9]
Note
The amendment to subsection (a) by L 2015, c 117, §2, effective July 1, 2016, was also made by L 2015, c 121, §5, effective June 12, 2015. L 2015, c 117, § §2, 11 and c 121, § §5, 17.

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