HB 330: RELATING TO SCHOOL IMPACT FEES.

A BILL FOR AN ACT

RELATING TO SCHOOL IMPACT FEES.

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

     SECTION 1.  The legislature finds that the existing governance structure of the school impact fee program is misaligned.  The school facilities authority is responsible for administering the school impact fee program.  Therefore, it is appropriate that the school facilities authority board be the governing entity overseeing the program rather than the board of education.

     The purpose of this Act is to improve the alignment of the school impact fee program's governance structure by placing oversight of the program under the school facilities authority board.

     SECTION 2.  Section 302A-1602, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Board" means the school facilities authority board established by section 302A-1704."

     SECTION 3.  The school facilities authority board shall carry out the processes and procedures as conducted by the board of education to dissolve a school impact district designated pursuant to section 302A-1604, Hawaii Revised Statutes, upon the transfer of oversight of the school impact fee program from the board of education to the school facilities board.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

School Facilities Authority Board; Governance Structure

Description:

Places oversight of the School Impact Fee Program under the School Facilities Authority Board.  Directs the School Facilities Authority Board to carry out the processes and procedures conducted by the Board of Education to dissolve a school impact district upon the transfer of oversight of the School Impact Fee Program.  Effective 7/1/3000.  (HD1)

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

A BILL FOR AN ACT

relating to school impact fees.

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

     SECTION 1.  The legislature finds that the existing governance structure of the school impact fee program is misaligned.  The school facilities authority is responsible for administering the school impact fee program.  Therefore, it is appropriate that the school facilities authority board be the governing entity overseeing the program rather than the board of education.

     The purpose of this Act is to:

     (1)  Improve the alignment of the school impact fee program's governance structure by placing oversight of the program under the school facilities authority board; and

     (2)  Allow the school facilities authority board to dissolve a school impact district without a public hearing.

     SECTION 2.  Section 302A-1602, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Board" means the school facilities authority board established by section 302A-1704."

     SECTION 3.  Section 302A-1604, Hawaii Revised Statutes, is amended to read as follows:

     "§302A-1604  Designation of school impact districts.  (a)  The board shall designate a school impact district for school impact fees only after holding at least one public hearing in the area proposed for the school impact district.  The written analysis, prepared in accordance with subsection (b), shall be made available to the public at least thirty days prior to the public hearing.  Notice of the public hearing shall be made as provided in section 1‑28.5.  The notice shall include a map of the proposed school impact district and the date, time, and place of the public hearing.

     (b)  Prior to the designation of a school impact district, the authority shall prepare a written analysis that contains the following:

     (1)  A map and legend describing the boundaries of the proposed school impact district area, which may range from one school to one or more high school complexes, as well as maps and legends describing surrounding districts and school enrollments at existing school facilities in and around the school impact district;

     (2)  The need to construct new or expand existing school facilities in the proposed school impact district area within the next twenty-five years to accommodate projected growth in the area based on various state and county land use, demographics, growth, density, and other applicable historical data projections and plans;

     (3)  An analysis to determine appropriate student generation rates by dwelling unit type for all new residential developments in the school impact district area to provide the basis for determining the steady state enrollment generated by new residential developments that will need to be accommodated.  The analysis shall also consider enrollment at existing school facilities, in and around the school impact district;

     (4)  Student generation rates, based on full build-out of the developments when student generation rates are anticipated to be in a steady state mode;

     (5)  An analysis to estimate the number of students generated by all new residential developments in the school impact district at the point in time when the total enrollment from these developments is anticipated to peak.  This information is required for or related to the determination of the impact fee, and will provide the basis for determining the maximum enrollment generated by new residential developments that will need to be accommodated in both permanent facilities and portable buildings;

     (6)  Calculation of the current statewide level of service;

     (7)  An analysis of appropriate school land area, or other appropriate state lands, and enrollment capacity, which may include nontraditional (i.e., mid-rise or high-rise structures) facilities to accommodate the need for public school facilities in high-growth areas within existing urban developments;

     (8)  A statewide classroom use report, which shall include the following:

          (A)  Current design enrollment per school (i.e., maximum number of students per classroom per school);

          (B)  Current total student enrollment per school; and

          (C)  Current number of classrooms not being used for active teaching; and

     (9)  An analysis including the advantages and disadvantages of making more efficient use of existing or underused assets in the school impact district through school redistricting.

     The analyses specified in paragraphs (3) and (6) shall be periodically updated pursuant to section 302A-1612(b).

     (c)  The board may dissolve a school impact district without a public hearing."

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

Report Title:

School Facilities Authority Board; Governance Structure; Dissolution of School Impact District Without Public Hearing

Description:

Places oversight of the School Impact Fee Program under the School Facilities Authority Board.  Allows the School Facilities Authority Board to dissolve a school impact district without a public hearing.

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

STAND. COM. REP. NO.  119

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 330

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Education, to which was referred H.B. No. 330 entitled:

"A BILL FOR AN ACT RELATING TO SCHOOL IMPACT FEES,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Place oversight of the School Impact Fee Program's governance structure under the School Facilities Authority Board; and

     (2)  Allow the School Facilities Authority Board to dissolve a school impact district without a public hearing.

     Your Committee received testimony in support of this measure from Hawaiʻi YIMBY.  Your Committee received testimony in support of the intent of this measure from the School Facilities Authority and Hawaii Appleseed Center for Law & Economic Justice.  Your Committee received comments on this measure from the Department of Education; Tax Foundation of Hawaii; and Grassroot Institute of Hawaii.

     Your Committee finds that the existing governance structure of the School Impact Fee Program is misaligned.  As the School Facilities Authority is currently responsible for administering the program, your Committee believes that it is appropriate that the School Facilities Authority Board be the governing entity overseeing the school impact fee program rather than the Board of Education.

     Your Committee has amended this measure by:

     (1)  Deleting language that would have authorized the School Facilities Authority Board to dissolve a school impact district without a public hearing;

     (2)  Directing the School Facilities Authority Board to carry out the processes and procedures conducted by the Board of Education to dissolve a school impact district upon the transfer of oversight of the School Impact Fee Program;

     (3)  Changing the effective date to July 1, 3000; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 330, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 330, H.D. 1, and be referred to your Committee on Housing.

Respectfully submitted on behalf of the members of the Committee on Education,