HB 721 Summary

• Establishes a state-owned bank implementation board within the Department of Commerce and Consumer Affairs to study the feasibility of creating a state-owned bank in Hawaii.

• Board shall consist of 10 voting members from state agencies and institutions (commerce and consumer affairs, agriculture, budget and finance, business/economic development/tourism, University of Hawaii, Hawaii housing finance and development corporation, and office of Hawaiian affairs) plus up to 5 invited representatives from community organizations.

• Board must evaluate the Bank of North Dakota model, Massachusetts feasibility studies, capital requirements, economic impact, effects on existing financial institutions, operating costs, and applicable state laws for establishing a state-owned bank.

• Board shall submit findings, recommendations, and proposed legislation to the legislature no later than twenty days before the 2027 regular legislative session, with assistance from the legislative reference bureau.

• Board shall cease to exist on June 30, 2027; Act takes effect July 1, 2025.