Hawaii House Bill HB505

Hawaii 2023 Regular Session

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

Caption

Relating To Real Estate Purchase By Foreign Entities.

Impact

If passed, HB 505 will serve to amend the Hawaii Revised Statutes, establishing a new statute dedicated to the prohibition of real estate transactions involving foreign entities deemed hostile. It would classify any such transaction as a class C felony, making violators subject to significant legal consequences. This could deter foreign investments in Hawaii's real estate market, thereby attempting to retain local ownership and maintain control over land use and development in the state.

Summary

House Bill 505 aims to enhance national security by prohibiting the purchase or transfer of real estate in Hawaii to entities affiliated with the Chinese Communist Party (CCP) and other foreign entities that present a threat to the United States. The legislation emphasizes the link between national and state security, particularly in light of geopolitical tensions that have heightened concerns over foreign influence in domestic affairs. The bill outlines specific definitions of what constitutes the CCP and 'hostile foreign influence,' making clear its intent to safeguard land acquisition against perceived threats arising from foreign ownership.

Contention

The bill has been met with various points of contention among legislators and stakeholders. Critics argue that the legislation could disproportionately affect legitimate foreign investments, potentially discouraging economic development or improvement projects in Hawaii. They express concern that the broad definitions of 'hostile foreign influence' might unfairly categorize benign foreign entities as threats, which could lead to unintended consequences for the state's economy. Proponents, however, assert that the need for stringent measures is paramount to protect local interests and national security.