Hawaii House Bill HB505

Hawaii 2024 Regular Session

• Introduced: 1/23/23
• Refer: 1/27/23

Caption

Relating To Real Estate Purchase By Foreign Entities.

Impact

If enacted, this bill would amend the Hawaii Revised Statutes to create a new chapter entitled 'Chinese Communist Party and Other Hostile Foreign Influence Real Estate Transfer Ban Act.' This would establish a legal framework for assessing and restricting real estate transactions involving foreign entities viewed as threats to the state's and country's security. Violators of this law would face a class C felony charge, indicating a serious level of enforcement intended to deter potential violations.

Summary

House Bill 505 seeks to address national security concerns by prohibiting the purchase or transfer of real estate in Hawaii to entities associated with the Chinese Communist Party (CCP) or other foreign influences deemed hostile. The bill is rooted in recent geopolitical events that heighten concerns over foreign corporation actions within the United States, particularly from China. The introduction of this legislation reflects the growing apprehension about who controls land in Hawaii and the wider implications for national security, which some legislators argue is intertwined with the real estate interests of foreign entities.

Contention

Despite its national security aims, the bill may face opposition on various fronts. Critics argue that it could lead to overreach and discrimination against foreign investors, particularly when restrictions are based solely on the connection to the CCP. Furthermore, there are concerns regarding how strictly 'hostile foreign influence' is defined and whether this could have broader implications on Hawaii's economy, particularly in tourism and real estate markets. Balancing national security interests with economic realities will likely be a point of contention during discussions surrounding this bill.