Bill Text: HI HB952 | 2011 | Regular Session | Amended

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Bill Title: Education; Public School Lands Trust

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2011-03-10 - (S) Referred to EDU/WLH, WAM. [HB952 Detail]

Download: Hawaii-2011-HB952-Amended.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	952
TWENTY-SIXTH LEGISLATURE, 2011		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO PUBLIC SCHOOL LANDS.

 

 

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

 

     SECTION 1.  The legislature finds that one of the major educational dilemmas of our time is rooted in an existing system that traps information-age kids in agricultural-age schools.  While the flow of information and ideas is increasingly fluid, we are locking students into physical structures and mindsets of an earlier time and place.  Building, repairing, and retrofitting our public schools to meet the challenges of the twenty-first century and beyond will not be easy, and the costs will be considerable.  However, a quality school infrastructure is essential if we are to create an environment that will maximize student achievement and adequately prepare our children to succeed in today's highly competitive economy.

     The infrastructure of the twenty-first century school must be energy-efficient and wired with the latest in broadband technology.  Connectivity via laptops and handheld devices between faculty and students is fundamental.  Classroom size must be flexible because the program, not the space, should determine the number of students per class.  The school campus must be designed from its inception not to waste land, to provide for maximum student safety, and to offer the community multiple use of existing structures.  For teachers and administrative staff, the workplace must be family-friendly.  Most of our current school campuses fall short in these areas.

     The considerable amount of underused public school lands on the State's two hundred fifty-seven school campuses is an untapped resource that lies easily within our reach that would enable us to build this infrastructure and make our classrooms fit for twenty-first century learning.  By way of illustration, a preliminary review by a real estate expert indicates that the redevelopment of ten parcels have the potential to generate $120,000,000.  The lands would be developed solely for the benefit of Hawaii's public school children.  The beneficiaries would be the children of Hawaii and especially the native Hawaiian population, which currently comprises twenty-eight per cent of the youth in the State's public school system.  According to the office of Hawaiian affairs, enrollment of native Hawaiians in some rural public schools exceeds fifty per cent.  We cannot afford to neglect the education of these children because they are the future of this State.

     The purpose of this Act is to provide for the maximum use of public school lands to generate income to improve public school facilities and infrastructure to meet the challenges of the twenty-first century.

     SECTION 2.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

PUBLIC SCHOOL LANDS TRUST

     §   -1  Definitions.  As used in this chapter:

     "Commission" means the public school lands trust commission.

     "Public school trust lands" means all lands under the management of the state department of education as of July 1, 2011, for kindergarten, elementary, and secondary schools, and other facilities; provided that it shall not include lands owned by the department of Hawaiian home lands, the United States of America, or any private person or entity.  Any other lands that, after July 1, 2011, are used or dedicated for use by kindergarten, elementary, and secondary public schools shall be public school trust lands.

     "Redevelopment" includes the sale or lease of public school trust lands that are not required for the use of public schools, the relocation and redevelopment of public schools, and the redevelopment of public school trust lands in accordance with the redevelopment process set forth in this chapter.

     §   -2  Public school lands trust.  There is created a public school lands trust, the corpus of which shall include the public school trust lands, and the purpose of which is to maximize the use of public school lands and generate income to construct, repair, and retrofit public schools to meet the challenges of the twenty-first century and beyond.

     §   -3  Public school trust lands.  (a)  Notwithstanding section 171-95 or any other law to the contrary, all executive orders transferring the management of public school trust lands to the department of education shall be cancelled and title to the lands, including any existing encumbrances on title, shall be transferred to the public school lands trust.

     (b)  Where title to public school trust lands is held by the city and county of Honolulu, the county of Maui, the county of Hawaii, or the county of Kauai, the title, by operation of law, shall be transferred to the public school lands trust.  Deeds documenting the transfers shall be executed no later than July 1, 2013.

     §   -4  Public school lands trust commission.  (a)  There is established a public school lands trust commission that shall manage, administer, and exercise control over the public school lands trust.  The commission shall be placed within the department of land and natural resources for administrative purposes only.

     (b)  The commission shall consist of eight public voting members appointed by the governor as provided in section 26-34, and one ex officio voting member; provided that:

     (1)  Four of the public members shall represent each of the four counties;

     (2)  At least four of the public members shall have real estate experience;

     (3)  At least one public member shall have appraisal qualifications as a member of the Appraisal Institute or equivalent organization;

     (4)  At least one public member shall be a retired teacher;

     (5)  At least one public member shall be a retired principal or school administrator; and

     (6)  The chairperson of the board of land and natural resources shall serve as the ex officio voting member.

     (c)  The governor shall designate the chairperson of the commission from among the members; provided that the chairperson of the board of land and natural resources shall not serve as the chairperson of the commission.

     (d)  The members of the commission shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

     (e)  The commission shall appoint an executive director, who shall not be subject to chapter 76, and whose duties shall be to administer and implement, under the direction of the commission, this chapter, and all rules and other directives adopted by the commission.

     §   -5  Powers.  The management, administration, and control of the public school lands trust shall rest with the commission.  In addition to its other powers, the commission shall have the power to:

     (1)  Adopt rules pursuant to chapter 91;

     (2)  Enter into contracts;

     (3)  Sue and be sued;

     (4)  Appoint officers, agents, and employees without regard to chapter 76;

     (5)  Acquire public school trust lands through operation of law, purchase, gift, devise, or eminent domain;

     (6)  Hold title to all public school trust lands; and

     (7)  Sell, assign, exchange, transfer, convey, lease, sublease, or otherwise dispose of or encumber public school trust lands; provided that public school trust lands may be sold only for single-family residential use and only if the use is deemed to be the highest and best use for the lands; provided further that the sale of any public school trust lands shall be approved by no less than two-thirds of the members of the commission.

     §   -6  Duties and responsibilities.  The commission shall have the duties and responsibilities to manage, administer, and exercise control over the public school lands trust in accordance with this chapter.  In addition to its other duties and responsibilities, the commission shall:

     (1)  Within one year of its appointment, identify excess and underused public school lands and identify public school lands sites with the potential for redevelopment;

     (2)  Develop a strategic plan and implementation schedule for the redevelopment of public school lands;

     (3)  Consistent with the department of education's facilities plans, prepare development plans for school sites that have the potential for generating revenues along with improving school facilities at the respective sites;

     (4)  Engage the services of consultants for rendering professional or technical assistance and advice to provide for generating revenues from unused or underused public school trust lands;

     (5)  Recommend the issuance of special purpose revenue bonds for the purpose of loaning or otherwise applying bond proceeds in accordance with redevelopment projects approved by the commission;

     (6)  Implement the redevelopment of public school lands; and

     (7)  No less than twenty days prior to the convening of each legislative session, provide an annual report of the commission's activities to the legislature.

     §   -7  Redevelopment process.  (a)  In cooperation with the department of education, the commission shall identify public school trust lands with the potential for redevelopment.

     (b)  For each of the lands identified, a preliminary study shall be undertaken to determine the highest and best use of the land, which shall consider and describe:

     (1)  The current appraised value of the land;

     (2)  The redevelopment potential of the land;

     (3)  How the existing school will be affected during redevelopment;

     (4)  How the redevelopment meets the requirements for school facilities for the twenty-first century and beyond;

     (5)  County zoning and land use issues; and

     (6)  Other pertinent or potential issues.

     There shall be held at least one public hearing prior to completion of the preliminary study.

     (c)  Upon consideration of the preliminary study, the commission may authorize the commencement of a process in which redevelopment proposals are solicited and analyzed in accordance with practices and procedures adopted by the commission.  The executive director shall provide a report to the commission describing and evaluating all of the redevelopment proposals duly submitted.  Prior to approving any redevelopment proposal, the commission shall hold a public hearing, which may include at the discretion of the commission, all proposals submitted or selected proposals that the commission deems to best serve the public interest and the purposes of this chapter.

     §   -8  Proceeds generated by redevelopment projects.  All proceeds generated through redevelopment projects under this chapter shall be deposited into the school facilities special fund under section 302A-B; provided that proceeds derived from the sale of public school trust lands shall be deposited into the public school lands trust permanent fund under section 302A‑A; provided further that $           or ten per cent of the proceeds, whichever is less, shall be allocated for the administration of this chapter."

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

     "§302A-A  Public school lands trust permanent fund.  There is established the public school lands trust permanent fund into which shall be deposited all proceeds from the sale of public school trust lands pursuant to chapter      .  The fund shall be administered by the director of finance who shall maintain the corpus of the fund.  Any and all interest income accruing to this fund shall be deposited into the school facilities special fund established in section 302A-B.

     §302A-B  School facilities special fund.  (a)  There is established a school facilities special fund into which shall be deposited all proceeds from leases, permits, interest from sale contracts, interest income generated from the public school lands trust permanent fund, and other revenue generated from the non-permanent disposition of public school trust lands under chapter      .

     (b)  The school facilities special fund shall be administered by the department.  Except as otherwise authorized by statute, all moneys in the school facilities special fund shall be used to construct and improve public school facilities to meet the challenges of the twenty-first century and beyond; provided that up to twenty per cent of the moneys in the school facilities special fund may be allocated for general repairs and maintenance; provided further that not more than five per cent of the moneys in the school facilities special fund shall be used to offset normal school expenditures."

     SECTION 4.  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 accreted lands not otherwise awarded, submerged lands, and lands beneath tidal waters which are suitable for reclamation, together with reclaimed lands which 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 prior to 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 Hawaii State Constitution, the Hawaiian Homes Commission Act, 1920, as amended, or other laws;

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

     (6)  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 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;

     (9)  Lands which 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;

    (10)  Lands which 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; [and]

    (11)  Lands to which the high technology development corporation in its corporate capacity holds title[.]; and

    (12)  Lands designated as public school trust lands under chapter      ."

     SECTION 5.  In codifying the new sections added by section 3 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 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2030.

 

 

Report Title:

Education; Public School Lands Trust

 

Description:

Establishes the public school lands trust to provide for the maximum use of public school lands to generate income to improve public school facilities and infrastructure to meet the challenges of the twenty-first century and beyond.  Effective July 1, 2030.  (HB952 HD1)

 

 

 

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