Bill Text: HI SB3328 | 2024 | Regular Session | Amended

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Bill Title: Relating To Education.

Spectrum: Strong Partisan Bill (Democrat 11-1)

Status: (Engrossed) 2024-03-13 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on LGO with Representative(s) Amato, Belatti, Hussey-Burdick, Kapela, Matayoshi voting aye with reservations; Representative(s) Perruso voting no (1) and Representative(s) Alcos excused (1). [SB3328 Detail]

Download: Hawaii-2024-SB3328-Amended.html

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THE SENATE	S.B. NO.	3328
THIRTY-SECOND LEGISLATURE, 2024		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO EDUCATION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

PART I

     SECTION 1.  Section 26-12, Hawaii Revised Statutes, is amended to read as follows:

     "§26-12  Department of education.  (a)  The department of education shall be headed by an executive board to be known as the board of education.

     (b)  Under policies established by the board, the superintendent shall administer programs of education and public instruction throughout the State, including education at the primary and secondary school levels, adult education, school library services, health education and instruction (not including dental health treatment transferred to the department of health), special education and Title I funded programs at the prekindergarten level, and [such] other programs as may be established by law; provided that the department shall not establish general education prekindergarten classrooms, including private partnership-funded classrooms and classrooms to provide general education settings for children whose individualized education programs require [such] placement; provided further that the department may:

     (1)  Establish Title I-funded prekindergarten classrooms; and

     (2)  Directly accept private funding for the purpose of establishing public prekindergarten programs; provided further that:

          (A)  The department shall comply with section 302L-7;

          (B)  The department and the executive office on early learning shall sign a bilateral memorandum of agreement or understanding; and

          (C)  The department, the executive office on early learning, and the person or entity providing the private funding may sign a multilateral memorandum of agreement or understanding.

     (c)  If the private funding provided is insufficient to maintain the classroom operations of a public prekindergarten program established pursuant to subsection (b)(2), the department and executive office on early learning shall be prohibited from requesting additional funding from the legislature to pay for the remaining costs.

     (d)  The department shall collaborate with the executive office on early learning to coordinate services for children who are placed through their individualized education programs in a general education prekindergarten setting in a classroom offered by the executive office on early learning public prekindergarten program.  Under policies established by the early learning board, the executive office on early learning shall have administrative authority over all state-funded prekindergarten programs, and private partnership-funded prekindergarten programs in the public schools, except for special education and Title I-funded prekindergarten programs.  The state librarian, under policies established by the board of education, shall be responsible for the administration of programs relating to public library services and transcribing services for the blind.

     (e)  The functions and authority exercised by the department relating to state-funded prekindergarten programs, private partnership-funded prekindergarten programs in the public schools, and classrooms to provide general education settings for children whose individualized education programs require [such] placement, except for special education and Title I-funded prekindergarten programs, shall be transferred to the executive office on early learning; provided that the department shall continue to provide, and have administrative authority over:

     (1)  Services generally provided to the schools, excluding those services related to curriculum, instruction, assessment, and professional learning support, for any facility on a department school campus at which the executive office on early learning administers programs; and

     (2)  Public prekindergarten programs established pursuant to subsection (b)(2).

     (f)  The functions and authority heretofore exercised by the department of education (except dental health treatment transferred to the department of health), library of Hawaii, Hawaii county library, Maui county library, and the transcribing services program of the bureau of sight conservation and work with the blind, as heretofore constituted are transferred to the public library system established by this chapter.

     (g)  The management contract between the board of supervisors of the county of Kauai and the Kauai public library association shall be terminated at the earliest time after November 25, 1959, permissible under the terms of the contract and the provisions of this subsection shall constitute notice of termination, and the functions and authority heretofore exercised by the Kauai county library as heretofore constituted and the Kauai public library association over the public libraries in the county of Kauai shall thereupon be transferred to the public library system established by this chapter.

     (h)  The management contracts between the trustees of the library of Hawaii and the Friends of the Library of Hawaii, and between the library of Hawaii and the Hilo library and reading room association, shall be terminated at the earliest time after November 25, 1959, permissible under the terms of the contracts, and the provisions of this subsection shall constitute notice of termination.

     (i)  Upon the termination of the contracts, the State or the counties shall not enter into any library management contracts with any private association; provided that in providing library services, the board of education may enter into contracts approved by the governor for the use of lands, buildings, equipment, and facilities owned by any private association.

     (j)  Notwithstanding any law to the contrary, the board of education may establish, specify the membership number and quorum requirements for, appoint members to, and disestablish a commission in each county to be known as the library advisory commission, which shall in each case sit in an advisory capacity to the board of education on matters relating to public library services in their respective county.

     (k)  The department shall establish, maintain, and operate the public education facilities of the State, including public schools and other educational facilities authorized by law.  The department may enter into service-level agreements, memoranda of agreement, or memoranda of understanding with other departments for these responsibilities if the agreement or understanding is beneficial for the State."

     SECTION 2.  Section 302A-1111, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Under policies established by the board, the superintendent shall be designated as the chief executive officer of the public school system having jurisdiction over the internal organization, operation, and management of the public school system, as provided by law; and shall administer programs of education and public instruction throughout the State, including education at the primary and secondary school levels, the superintendence and management of the internal improvements of the public education facilities of the State, and [such] other programs as may be established by law; provided that all state-funded prekindergarten programs, and private partnership-funded prekindergarten programs in the public schools, except for special education and Title I-funded prekindergarten programs, shall be under the administrative authority of the executive office on early learning; provided further that the department shall continue to provide, and have administrative authority over, services generally provided to the schools excluding those services related to curriculum, instruction, assessment, and professional learning support, for any facility on a department school campus at which the executive office on early learning administers programs."

PART II

     SECTION 3.  Chapter 302A, Hawaii Revised Statutes, is amended by adding two new sections to part VI, subpart A, to be appropriately designated and to read as follows:

     "§302A-A  Separation of facilities and operations.  (a)  There is established within the department:

     (1)  The office of facilities and real estate development; and

     (2)  The office of school operations and services.

     (b)  The office of facilities and real estate development shall be responsible for the development, construction, repairs, maintenance, and other activities necessary for public education facilities as authorized by law or deemed necessary by board policy.

     The head of the office of facilities and real estate development shall be known as the assistant superintendent of facilities and real estate development.  The superintendent shall appoint the assistant superintendent of facilities and real estate development and a secretary, who shall be exempt from chapter 76.  The assistant superintendent of facilities and real estate development and secretary may be removed by the superintendent.

     (c)  The office of school operations and services shall be responsible for service operations including school meals, transportation, and other activities as may be required by law or deemed necessary by board policy.

     §302A-B  Office of facilities and real estate development; powers.  Except as otherwise limited by this chapter and upon approval by the board, the office of facilities and real estate development may:

     (1)  Acquire or contract to acquire by grant or purchase real, personal, or mixed property or any interest therein; to clear, improve, rehabilitate; and to sell, assign, exchange, transfer, convey, lease, subdivide, or otherwise dispose of or encumber the same;

     (2)  Acquire property by condemnation pursuant to chapter 101;

     (3)  Enter into partnerships with qualified persons, including public-private partnerships, as defined in the department's rules, to acquire, construct, reconstruct, rehabilitate, improve, alter, or provide for the construction, reconstruction, improvement, or alteration of any project, including prekindergarten facilities; and sell, assign, transfer, convey, exchange, lease, or otherwise dispose of or encumber any project; and in the case of the sale of any project, accept a purchase money mortgage in connection therewith;

     (4)  Grant options to acquire any project or to renew any lease entered into by the office of facilities and real estate development in connection with any of its projects, on terms and conditions as it deems advisable;

     (5)  Grant options to purchase any project or to renew any lease entered into by the office of facilities and real estate development in connection with any of its projects, on terms and conditions as it deems advisable;

     (6)  Appoint or retain by contract one or more attorneys who are independent of the attorney general to provide legal services solely in cases of negotiations in which the attorney general lacks the sufficient expertise; provided that the independent attorney shall consult and work in conjunction with the designated deputy attorney general; and

     (7)  Recruit, hire, and retain exempt employees, architects, engineers, existing civil service positions, and other technical positions required for the development, planning, and construction related to capital improvement projects, repair and maintenance, and deferred maintenance."

PART III

     SECTION 4.  Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part VI, subpart A, to be appropriately designated and to read as follows:

     "§302A-C  Educational facilities and real estate development special fund.  (a)  There is established within the state treasury a special fund to be known as the educational facilities and real estate development special fund into which shall be deposited:

     (1)  All moneys appropriated or transferred by the legislature or counties for deposit into the special fund;

     (2)  Any moneys received by the department in the form of a grant, gift, endowment, or donation for the development, planning, or construction of new educational facilities or major renovations of educational facilities; and

     (3)  All other moneys received by the department and not deposited into a trust fund or trust account, including unrestricted grants, gifts, and donations; proceeds from sales of property; rents and other receipts from leases, rights of entry, and the like; and interest, refunds, and other receipts and payments.

     (b)  The department shall establish and appropriately name subaccounts within the educational facilities and real estate development special fund to accept deposits of revenue from school impact fees that are required to be expended within a specific school impact district pursuant to section 302A-1608(a) or restricted for a specified purpose pursuant to part V, subpart B, of this chapter.

     (c)  The educational facilities and real estate development special fund shall be administered by the department and used to fund any school development, planning, or construction project, including prekindergarten facilities, within the jurisdiction of the department.

     (d)  Subject to chapter 84, notwithstanding any other law to the contrary, the governor may authorize expenditures from the educational facilities and real estate development special fund of any donation, grant, bequest, and devise of money from any private institution, person, firm, or corporation for the purposes of funding the salaries of the department.  If all or any portion of any salary of the department or any officer, agent, or employee of the department is funded pursuant to this subsection, the department shall submit a report to the legislature detailing the use of any funds authorized under this subsection no later than twenty days prior to the convening of the next regular session following the expenditure authorization.

     (e)  The department shall submit to the director of finance a report that shall be prepared in the form prescribed by the director of finance and shall identify the total amount of funds in the educational facilities and real estate development special fund that will carry over to the next fiscal year.  The department shall submit the report to the director of finance and the legislature within ninety days of the close of each fiscal year.

     (f)  Within the educational facilities and real estate development special fund there shall be established accounts and subaccounts as may be necessary from time to time to ensure compliance with the Internal Revenue Code, as amended."

PART IV

     SECTION 5.  (a)  In addition to the responsibilities set forth in section 302A-A, Hawaii Revised Statutes, the office of facilities and real estate development shall include:

     (1)  The branches of facilities development and facilities maintenance as identified in the 2022 department of education organizational chart;

     (2)  The school support program, previously under the auxiliary services branch;

     (3)  The project control section;

     (4)  The environmental services unit; and

     (5)  The safety, security, and emergency preparedness branch.

     (b)  In addition to the responsibilities set forth in section 302A-A, Hawaii Revised Statutes, the office of school operations and services shall include:

     (1)  School transportation and school services as identified in the 2022 department of education organization chart;

     (2)  The school food services branch; and

     (3)  The reprographic section within the auxiliary services branch.

     (c)  The board of education shall act on the reorganization of the office of facilities and real estate development and the office of school operations and services no later than August 2024.

     (d)  The board of education shall approve a reorganization of the office of facilities and real estate development and the office of school operations and services no later than September 2024.

     SECTION 6.  All rights, powers, functions, and duties of the school facilities authority are transferred to the department of education.

     SECTION 7.  All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the school facilities authority relating to the functions transferred to the department of education shall be transferred with the functions to which they relate.

     SECTION 8.  All rules, policies, procedures, guidelines, and other material adopted or developed by the school facilities authority to implement provisions of the Hawaii Revised Statutes that are made reenacted or applicable to the department of education by this Act shall remain in full force and effect until amended or repealed by the board of education pursuant to chapter 91, Hawaii Revised Statutes.

     In the interim, every reference to the school facilities authority or the school facilities authority board in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of education and the board of education, as appropriate.

     SECTION 9.  All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the school facilities authority, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the department of education by this Act shall remain in full force and effect.  Upon effective date of this Act, every reference to the school facilities authority or the executive director of the school facilities authority therein shall be construed as a reference of the department of education or the superintendent of education, as appropriate.

PART V

     SECTION 10.  Section 28-8.3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  No department of the State other than the attorney general may employ or retain any attorney, by contract or otherwise, for the purpose of representing the State or the department in any litigation, rendering legal counsel to the department, or drafting legal documents for the department; provided that the foregoing provision shall not apply to the employment or retention of attorneys:

     (1)  By the public utilities commission, the labor and industrial relations appeals board, and the Hawaii labor relations board;

     (2)  By any court or judicial or legislative office of the State; provided that if the attorney general is requested to provide representation to a court or judicial office by the chief justice or the chief justice's designee, or to a legislative office by the speaker of the house of representatives and the president of the senate jointly, and the attorney general declines to provide [such] representation on the grounds of conflict of interest, the attorney general shall retain an attorney for the court, judicial, or legislative office, subject to approval by the court, judicial, or legislative office;

     (3)  By the legislative reference bureau;

     (4)  By any compilation commission that may be constituted from time to time;

     (5)  By the real estate commission for any action involving the real estate recovery fund;

     (6)  By the contractors license board for any action involving the contractors recovery fund;

     (7)  By the office of Hawaiian affairs;

     (8)  By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485A;

     (9)  As grand jury counsel;

    (10)  By the Hawaii health systems corporation, or its regional system boards, or any of their facilities;

    (11)  By the auditor;

    (12)  By the office of ombudsman;

    (13)  By the insurance division;

    (14)  By the University of Hawaii;

    (15)  By the Kahoolawe island reserve commission;

    (16)  By the division of consumer advocacy;

    (17)  By the office of elections;

    (18)  By the campaign spending commission;

    (19)  By the Hawaii tourism authority, as provided in section 201B-2.5;

    (20)  By the division of financial institutions;

    (21)  By the office of information practices;

   [(22)  By the school facilities authority;

    (23)] (22)  By the Mauna Kea stewardship and oversight authority; or

   [(24)] (23)  By a department, if the attorney general, for reasons deemed by the attorney general to be good and sufficient, declines to employ or retain an attorney for a department; provided that the governor waives the provision of this section."

     SECTION 11.  Section 76-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The civil service to which this chapter applies shall comprise all positions in the State now existing or hereafter established and embrace all personal services performed for the State, except the following:

     (1)  Commissioned and enlisted personnel of the Hawaii National Guard [as such], and positions in the Hawaii National Guard that are required by state or federal laws or regulations or orders of the National Guard to be filled from those commissioned or enlisted personnel;

     (2)  Positions filled by persons employed by contract where the director of human resources development has certified that the service is special or unique or is essential to the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures.  Any [such contract may be for any period not exceeding] contract under this paragraph shall not exceed one year;

     (3)  Positions that must be filled without delay to comply with a court order or decree if the director determines that recruitment through normal recruitment civil service procedures would result in delay or noncompliance, such as the Felix-Cayetano consent decree;

     (4)  Positions filled by the legislature or by either house or any committee thereof;

     (5)  Employees in the office of the governor and office of the lieutenant governor, and household employees at Washington Place;

     (6)  Positions filled by popular vote;

     (7)  Department heads, officers, and members of any board, commission, or other state agency whose appointments are made by the governor or are required by law to be confirmed by the senate;

     (8)  Judges, referees, receivers, masters, jurors, notaries public, land court examiners, court commissioners, and attorneys appointed by a state court for a special temporary service;

     (9)  One bailiff for the chief justice of the supreme court who shall have the powers and duties of a court officer and bailiff under section 606-14; one secretary or clerk for each justice of the supreme court, each judge of the intermediate appellate court, and each judge of the circuit court; one secretary for the judicial council; one deputy administrative director of the courts; three law clerks for the chief justice of the supreme court, two law clerks for each associate justice of the supreme court and each judge of the intermediate appellate court, one law clerk for each judge of the circuit court, two additional law clerks for the civil administrative judge of the circuit court of the first circuit, two additional law clerks for the criminal administrative judge of the circuit court of the first circuit, one additional law clerk for the senior judge of the family court of the first circuit, two additional law clerks for the civil motions judge of the circuit court of the first circuit, two additional law clerks for the criminal motions judge of the circuit court of the first circuit, and two law clerks for the administrative judge of the district court of the first circuit; and one private secretary for the administrative director of the courts, the deputy administrative director of the courts, each department head, each deputy or first assistant, and each additional deputy, or assistant deputy, or assistant defined in paragraph (16);

    (10)  First deputy and deputy attorneys general, the administrative services manager of the department of the attorney general, one secretary for the administrative services manager, an administrator and any support staff for the criminal and juvenile justice resources coordination functions, and law clerks;

    (11)  (A)  Teachers, principals, vice-principals, complex area superintendents, deputy and assistant superintendents, other certificated personnel, no more than twenty noncertificated administrative, professional, and technical personnel not engaged in instructional work;

          (B)  Effective July 1, 2003, teaching assistants, educational assistants, bilingual/bicultural school-home assistants, school psychologists, psychological examiners, speech pathologists, athletic health care trainers, alternative school work study assistants, alternative school educational/supportive services specialists, alternative school project coordinators, and communications aides in the department of education;

          (C)  The special assistant to the state librarian and one secretary for the special assistant to the state librarian; and

          (D)  Members of the faculty of the University of Hawaii, including research workers, extension agents, personnel engaged in instructional work, and administrative, professional, and technical personnel of the university;

    (12)  Employees engaged in special, research, or demonstration projects approved by the governor;

    (13)  (A)  Positions filled by inmates, patients of state institutions, persons with severe physical or mental disabilities participating in the work experience training programs;

          (B)  Positions filled with students in accordance with guidelines for established state employment programs; and

          (C)  Positions that provide work experience training or temporary public service employment that are filled by persons entering the workforce or persons transitioning into other careers under programs such as the federal Workforce Investment Act of 1998, as amended, or the Senior Community Service Employment Program of the Employment and Training Administration of the United States Department of Labor, or under other similar state programs;

    (14)  A custodian or guide at Iolani Palace, the Royal Mausoleum, and Hulihee Palace;

    (15)  Positions filled by persons employed on a fee, contract, or piecework basis, who may lawfully perform their duties concurrently with their private business or profession or other private employment and whose duties require only a portion of their time, if it is impracticable to ascertain or anticipate the portion of time to be devoted to the service of the State;

    (16)  Positions of first deputies or first assistants of each department head appointed under or in the manner provided in section 6, article V, of the Hawaii State Constitution; three additional deputies or assistants either in charge of the highways, harbors, and airports divisions or other functions within the department of transportation as may be assigned by the director of transportation, with the approval of the governor; one additional deputy in the department of human services either in charge of welfare or other functions within the department as may be assigned by the director of human services; four additional deputies in the department of health, each in charge of one of the following:  behavioral health, environmental health, hospitals, and health resources administration, including other functions within the department as may be assigned by the director of health, with the approval of the governor; two additional deputies in charge of the law enforcement programs, administration, or other functions within the department of law enforcement as may be assigned by the director of law enforcement, with the approval of the governor; three additional deputies each in charge of the correctional institutions, rehabilitation services and programs, and administration or other functions within the department of corrections and rehabilitation as may be assigned by the director or corrections and rehabilitation, with the approval of the governor; an administrative assistant to the state librarian; and an administrative assistant to the superintendent of education;

    (17)  Positions specifically exempted from this part by any other law; provided that:

          (A)  Any exemption created after July 1, 2014, shall expire three years after its enactment unless affirmatively extended by an act of the legislature; and

          (B)  All of the positions defined by paragraph (9) shall be included in the position classification plan;

    (18)  Positions in the state foster grandparent program and positions for temporary employment of senior citizens in occupations in which there is a severe personnel shortage or in special projects;

    (19)  Household employees at the official residence of the president of the University of Hawaii;

    (20)  Employees in the department of education engaged in the supervision of students during meal periods in the distribution, collection, and counting of meal tickets, and in the cleaning of classrooms after school hours on a less than half-time basis;

    (21)  Employees hired under the tenant hire program of the Hawaii public housing authority; provided that not more than twenty-six per cent of the authority's workforce in any housing project maintained or operated by the authority shall be hired under the tenant hire program;

    (22)  Positions of the federally funded expanded food and nutrition program of the University of Hawaii that require the hiring of nutrition program assistants who live in the areas they serve;

    (23)  Positions filled by persons with severe disabilities who are certified by the state vocational rehabilitation office that they are able to perform safely the duties of the positions;

    (24)  The sheriff;

    (25)  A gender and other fairness coordinator hired by the judiciary;

    (26)  Positions in the Hawaii National Guard youth and adult education programs;

    (27)  In the state energy office in the department of business, economic development, and tourism, all energy program managers, energy program specialists, energy program assistants, and energy analysts;

    (28)  Administrative appeals hearing officers in the department of human services;

    (29)  In the Med-QUEST division of the department of human services, the division administrator, finance officer, health care services branch administrator, medical director, and clinical standards administrator;

    (30)  In the director's office of the department of human services, the enterprise officer, information security and privacy compliance officer, security and privacy compliance engineer, security and privacy compliance analyst, information technology implementation manager, assistant information technology implementation manager, resource manager, community/project development director, policy director, special assistant to the director, and limited English proficiency project manager/coordinator;

    (31)  The Alzheimer's disease and related dementia services coordinator in the executive office on aging;

    (32)  In the Hawaii emergency management agency, the executive officer, public information officer, civil defense administrative officer, branch chiefs, and emergency operations center state warning point personnel; provided that for state warning point personnel, the director shall determine that recruitment through normal civil service recruitment procedures would result in delay or noncompliance;

   [(33)  The executive director and seven full-time administrative positions of the school facilities authority;

    (34)] (33)  Positions in the Mauna Kea stewardship and oversight authority;

   [(35)] (34)  In the office of homeland security of the department of law enforcement, the statewide interoperable communications coordinator; and

   [(36)] (35)  In the social services division of the department of human services, the business technology analyst.

     The director shall determine the applicability of this section to specific positions.

     Nothing in this section shall be deemed to affect the civil service status of any incumbent as it existed on July 1, 1955."

     SECTION 12.  Section 84-17, Hawaii Revised Statutes, is amended to read as follows:

     "(c)  The following persons shall file annually with the state ethics commission a disclosure of financial interests:

     (1)  The governor, lieutenant governor, members of the legislature, and delegates to the constitutional convention; provided that delegates to the constitutional convention shall only be required to file initial disclosures;

     (2)  The directors and their deputies, the division chiefs, the executive directors and the executive secretaries and their deputies, the purchasing agents, and the fiscal officers, regardless of the titles by which the foregoing persons are designated, of every state agency and department;

     (3)  The permanent employees of the legislature and its service agencies, other than persons employed in clerical, secretarial, or similar positions;

     (4)  The administrative director of the State, and the assistants in the office of the governor and lieutenant governor, other than persons employed in clerical, secretarial, or similar positions;

     (5)  The hearings officers of every state agency and department;

     (6)  The president, vice presidents, assistant vice presidents, chancellors, and provosts of the University of Hawaii and its community colleges;

     (7)  The superintendent, deputy superintendent, assistant superintendents, complex area superintendents, state librarian, and deputy state librarian of the department of education;

     (8)  The administrative director and deputy director of the courts;

     (9)  The members of every state board or commission whose original terms of office are for periods exceeding one year and whose functions are not solely advisory;

    (10)  Candidates for state elective offices, including candidates for election to the constitutional convention; provided that candidates shall only be required to file initial disclosures;

    (11)  The administrator and assistant administrator of the office of Hawaiian affairs; and

    (12)  The Hawaii unmanned aerial systems test site chief operating officer[; and

    (13)  The members of the school facilities board appointed by the governor]."

     SECTION 13.  Section 171-2, Hawaii Revised Statutes, is amended to read as follows:

     "§171-2  Definition of public lands.  "Public lands" means all lands or interest therein in the State classed as government or crown lands previous to August 15, 1895, or acquired or reserved by the government upon or subsequent to that date by purchase, exchange, escheat, or the exercise of the right of eminent domain, or in any other manner; including lands accreted after May 20, 2003, and not otherwise awarded, submerged lands, and lands beneath tidal waters that are suitable for reclamation, together with reclaimed lands that have been given the status of public lands under this chapter, except:

     (1)  Lands designated in section 203 of the Hawaiian Homes Commission Act, 1920, as amended;

     (2)  Lands set aside pursuant to law for the use of the United States;

     (3)  Lands being used for roads and streets;

     (4)  Lands to which the United States relinquished the absolute fee and ownership under section 91 of the Hawaiian Organic Act before the admission of Hawaii as a state of the United States unless subsequently placed under the control of the board of land and natural resources and given the status of public lands in accordance with the state constitution, the Hawaiian Homes Commission Act, 1920, as amended, or other laws;

     (5)  Lands to which the University of Hawaii holds title;

     (6)  Non-ceded lands set aside by the governor to the Hawaii housing finance and development corporation or lands to which the Hawaii housing finance and development corporation in its corporate capacity holds title;

     (7)  Lands to which the Hawaii community development authority in its corporate capacity holds title;

     (8)  Lands set aside by the governor to the Hawaii public housing authority or lands to which the Hawaii public housing authority in its corporate capacity holds title;

     (9)  Lands to which the department of agriculture holds title by way of foreclosure, voluntary surrender, or otherwise, to recover moneys loaned or to recover debts otherwise owed the department under chapter 167;

    (10)  Lands that are set aside by the governor to the Aloha Tower development corporation, lands leased to the Aloha Tower development corporation by any department or agency of the State, or lands to which the Aloha Tower development corporation holds title in its corporate capacity;

    (11)  Lands that are set aside by the governor to the agribusiness development corporation, lands leased to the agribusiness development corporation by any department or agency of the State, or lands to which the agribusiness development corporation in its corporate capacity holds title;

    (12)  Lands to which the Hawaii technology development corporation in its corporate capacity holds title;

    (13)  Lands to which the department of education holds title; and

    (14)  Lands to which the stadium authority holds title; [and

    (15)  Lands to which the school facilities authority holds title;]

provided that, except as otherwise limited under federal law and except for state land used as an airport as defined in section 262-1, public lands shall include the air rights over any portion of state land upon which a county mass transit project is developed after July 11, 2005; provided further that if the lands pursuant to paragraph (6) are no longer needed for housing finance and development purposes, the lands shall be returned to the agency from which they were obtained; provided further that if the lands pursuant to paragraph (14) are no longer needed for the stadium development district or related purposes, the lands shall be returned to the public land trust administered by the department."

     SECTION 14.  Section 171-64.7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  This section applies to all lands or interest therein owned or under the control of state departments and agencies classed as government or crown lands previous to August 15, 1895, or acquired or reserved by the government upon or subsequent to that date by purchase, exchange, escheat, or the exercise of the right of eminent domain, or any other manner, including accreted lands not otherwise awarded, submerged lands, and lands beneath tidal waters that are suitable for reclamation, together with reclaimed lands that have been given the status of public lands under this chapter, including:

     (1)  Land set aside pursuant to law for the use of the United States;

     (2)  Land to which the United States relinquished the absolute fee and ownership under section 91 of the Organic Act before the admission of Hawaii as a state of the United States;

     (3)  Land to which the University of Hawaii holds title;

     (4)  Non-ceded land set aside by the governor to the Hawaii housing finance and development corporation or land to which the Hawaii housing finance and development corporation in its corporate capacity holds title;

     (5)  Land to which the department of agriculture holds title by way of foreclosure, voluntary surrender, or otherwise, to recover moneys loaned or to recover debts otherwise owed the department under chapter 167;

     (6)  Land that is set aside by the governor to the Aloha Tower development corporation or land to which the Aloha Tower development corporation holds title in its corporate capacity;

     (7)  Land that is set aside by the governor to the agribusiness development corporation or land to which the agribusiness development corporation in its corporate capacity holds title;

     (8)  Land to which the Hawaii technology development corporation in its corporate capacity holds title;

     (9)  Land to which the department of education holds title;

    (10)  Land to which the Hawaii public housing authority in its corporate capacity holds title; and

    (11)  Land to which the stadium authority holds title[; and

    (12)  Land to which the school facilities authority holds title]."

     SECTION 15.  Section 302A-1151.1, Hawaii Revised Statutes, is amended to read as follows:

     "§302A-1151.1  Pilot program for lease of public school land.  (a)  There shall be established within the [school facilities authority] department a pilot program for the lease of public school land, including facilities.  The [school facilities authority,] department, in consultation with any other appropriate agency, shall serve as the facilitator of the pilot program.

     (b)  Notwithstanding sections 171-13 and 302A-1151, or any other law to the contrary, the [school facilities authority] board may lease public school land on terms it deems appropriate, including a leaseback of all or a portion of the improvements constructed; provided that:

     (1)  The [school facilities authority] department may identify and select up to five public school land sites as candidates for participation in the pilot program; provided that:

          (A)  During the identification and selection process, the [school facilities authority] board shall be subject to chapter 92, shall hold at least one public meeting in each affected community, and shall foster school and community participation; and

          (B)  If the site is on land owned by the county, the [school facilities authority] department shall consult with the county;

     (2)  The [school facilities authority] department may lease public school land for no more than three public school land sites identified and selected by the [school facilities authority] board pursuant to paragraph (1) under leases for a term of not more than ninety-nine years per lease, to lessees who shall be required to modify, construct, or utilize facilities to benefit public educational purposes, in accordance with specific request for proposal or request for information guidelines;

     (3)  Each lease shall stipulate that the lessee may retain any revenue generated from the facilities; provided that:

          (A)  The lessee shall be obligated to maintain and operate the facilities to benefit public educational purposes for the length of the lease;

          (B)  The lessee shall be obligated to pay to the county all applicable property tax on the value of any improvements;

          (C)  A leasehold premium may be charged to the lessee for the right to use the public school land based on a competitive process that complies with applicable sections of chapter 103D;

          (D)  Upon the expiration of the lease, the facilities shall revert to the [school facilities authority;] department; and

          (E)  All revenues and proceeds derived by the State under this section shall be deposited in the school facilities subaccount pursuant to section 302A-1151.2; and

     (4)  Notwithstanding any law to the contrary, the [school facilities authority] department may enter into leaseback agreements that allow the [school facilities authority] department to lease or sublease the property to a third party.  The [school facilities authority] department may lease back the property from the third-party lessee or sublessee for a contractual period of time, after which the [school facilities authority] department shall own any improvements.

     (c)  Any redevelopment involving nonschool purposes shall:

     (1)  Comply with county plans, ordinances, and zoning and development codes; and

     (2)  Acquire all required government approvals and permits.

     (d)  Nothing in this section shall preclude the [school facilities authority] department from working with and receiving assistance from any other department or agency in carrying out the purposes of this section.

     [(e)  Any lease entered into by the school facilities authority pursuant to subsection (b) shall be fully executed no later than ten years from July 1, 2013.

     (f)] (e)  For purposes of this section, public educational purposes shall include but are not limited to:

     (1)  A new revenue source from the redevelopment of one or more underutilized [school facilities authority] department facilities;

     (2)  New construction of [school facilities authority] department facilities or renovation of existing, underutilized [school facilities authority] department facilities into a twenty-first century school; or

     (3)  A combination of paragraphs (1) and (2)."

     SECTION 16.  Section 302A-1602, Hawaii Revised Statutes, is amended as follows:

     1.  By amending the definition of "school facilities" to read:

     ""School facilities" means the facilities owned or operated by [the authority or] the department, or the facilities included in [the authority or] the department's capital budget or capital facilities plan."

     2.  By repealing the definition of "authority":

     [""Authority" means the school facilities authority established by section 302A-1702."]

     SECTION 17.  Section 302A-1603, Hawaii Revised Statutes, is amended to read as follows:

     "§302A-1603  Applicability and exemptions.  (a)  Except as provided in subsection (b), any person who seeks to develop a new residential development within a designated school impact district requiring:

     (1)  A county subdivision approval;

     (2)  A county building permit; or

     (3)  A condominium property regime approval for the project,

shall be required to fulfill the land component impact fee or fee in lieu requirement and construction cost component impact fee requirement of the [authority,] department, including all government housing projects and projects processed pursuant to sections 46-15.1 and 201H-38.

     (b)  The following shall be exempt from this section:

     (1)  Any form of housing permanently excluding school-aged children, with the necessary covenants or declarations of restrictions recorded on the property;

     (2)  Any form of housing that is or will be paying the transient accommodations tax under chapter 237D;

     (3)  All nonresidential development;

     (4)  Any development with an executed education contribution agreement or other like document with [the authority or] the department for the contribution of school sites or payment of fees for school land or school construction;

     (5)  Any form of housing developed by the department of Hawaiian home lands for use by beneficiaries of the Hawaiian Homes Commission Act, 1920, as amended; and

     (6)  Any form of development by the Hawaii community development authority pursuant to part XII of chapter 206E."

     SECTION 18.  Sections 302A-1604, 302A-1605, 302A-1606, 302A‑1607, 302A-1609, 302A-1610, 302A-1611, and 302A-1612, Hawaii Revised Statutes, are amended by substituting the term "department", or similar term, wherever the term "authority", or similar term, appears, as the context requires.

     SECTION 19.  Chapter 302A, part VI, subpart C, Hawaii Revised Statutes, is repealed.

     SECTION 20.  Any unencumbered balance in the school facilities special fund established pursuant to section 302A-1706, Hawaii Revised Statutes, and repealed under section 19 of this Act shall be transferred to the credit of the educational facilities and real estate development special fund pursuant to section 4 of this Act.

PART VI

     SECTION 21.  In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in Act 164, Regular Session of 2023, and this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $           or       per cent.  This current declaration takes into account general fund appropriations authorized for fiscal year 2024-2025 in Act 164, Regular Session of 2023, and this Act only.  The reasons for exceeding the general fund expenditure ceiling are that:

     (1)  The appropriation made in this Act is necessary to serve the public interest; and

     (2)  The appropriation made in this Act meets the needs addressed by this Act.

     SECTION 22.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2024-2025 to establish the following positions:

     (1)  The assistant superintendent of facilities and real estate development; and

     (2)  One full-time equivalent (1.0 FTE) secretary position, who shall be exempt from chapter 76, Hawaii Revised Statutes.

     The sum appropriated shall be expended by the department of education for the purposes of this Act.

     SECTION 23.  In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 24.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 25.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 26.  This Act shall take effect on July 1, 2050; provided that sections 10 through 20 and section 22 shall take effect on July 1, 2024; provided further that sections 3 and 4 shall be repealed on July 1, 2031.

 

 

 

Report Title:

DOE; SFA; Operations; Expenditure Ceiling; Appropriation

 

Description:

Clarifies the Department of Education's authority to oversee public education facilities and real estate development.  Establishes the Office of Facilities and Real Estate Development and the Office of School Operations and Services.  Repeals the School Facilities Authority.  Reorganizes the Department of Education's organizational structure for facilities and real estate development.  Establishes positions.  Makes conforming amendments.  Declares that the general fund expenditure ceiling is exceeded.  Makes an appropriation.  Repeals the Office of Facilities and Real Estate Development and Office of School Operations and Services 7/1/2031.  Takes effect 7/1/2050.  (SD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.