Hawaii Senate Bill SCR15

Hawaii 2026 Regular Session

• Introduced: 1/28/26
• Refer: 2/13/26

Caption

Requesting The Office Of The Auditor To Conduct A Performance Audit Of The Department Of Hawaiian Home Lands Paper Lease System.

Impact

The proposed performance audit aims to evaluate various critical aspects of the undivided lease system. It will assess the effectiveness of the system in advancing timely development, the average duration beneficiaries remain in lease status, and factors contributing to any delays. Additional focuses include examining administrative efficiencies within DHHL, internal controls for maintaining records, and the transparency of beneficiary rights and obligations throughout the leasing process. The outcomes of this audit are intended not only to inform legislative decisions but also to enhance public understanding of how well the DHHL is fulfilling its fiduciary responsibilities under relevant laws.

Summary

SCR15, a Senate Concurrent Resolution from the Thirty-third Legislature of Hawaii in 2026, requests the Office of the Auditor to conduct a performance audit of the Department of Hawaiian Home Lands' (DHHL) undivided lease system. The resolution underscores the responsibility of the DHHL in managing approximately 200,000 acres of land held in trust for native Hawaiian beneficiaries, aiming for effective homestead development and enhanced management of lease agreements involving the beneficiaries. The existing lease system allows beneficiaries to hold lease rights in a broader parcel without assignment to specific lots, which has raised concerns about clarity and management of these leases over time.

Contention

While the audit is positioned as a necessary measure for ensuring accountability, there may be differing views on the need for such oversight. Advocates argue that the complexities and challenges inherent in the undivided lease system necessitate independent evaluations to ensure beneficiaries are receiving clear rights and timely assistance in transitioning to subdivided leases. Conversely, some may question the efficiency of initiating an audit based on concerns that could potentially be managed internally, framing the initiative within the broader discussions of resource allocation and state management practices.