HOUSE OF REPRESENTATIVES
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO PUBLIC SCHOOL REDEVELOPMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that one of the major challenges for education is that our long-term physical infrastructure for schools does not keep up with the evolving research on learning and facility design or technological advances. While the flow of information and ideas is increasingly fluid, students are locked into physical structures that do not reflect our modern information and technology age. Building, repairing, and retrofitting, and constructing our public schools to meet the challenges of the twenty-first century will not be easy, and the costs will be considerable. However, quality school facilities can create an environment that will facilitate student achievement to prepare Hawaii's children to succeed in careers and college in the highly competitive global economy.
The legislature further finds that Hawaii's public school facilities, with an average age of sixty-five years, are inadequate to maximize twenty-first century learning opportunities. Most public schools are built on horizontal designs that tend to be expansive campuses. Such school configurations, in addition to hampering pedagogical methods, such as smaller learning communities and project-based learning, are not necessarily compatible with modern school facility designs. More modern layouts for twenty-first century schools can be more compact, enabling efficiencies in technology, energy use, security and grounds maintenance, more effective use of land, and improved sustainability for Hawaii communities.
Furthermore, while legislative funding has enabled a steady reduction in the department of education's repair and maintenance backlog in the last decade, the department continues have outstanding repair and maintenance needs, and many facilities have been ignored due to limited budgets. This year, the department reported that it has $266,000,000 in repair and maintenance backlog as of this year and for the upcoming biennium, $620,975,000 in prioritized capital improvement needs. In addition, the department projects a need to construct 11 new schools in growing communities over the next six years. Despite significant reduction in the repair and maintenance backlog, down from $700 million a decade ago, year after year, the department's need for funding school facilities – either new construction, capital improvements, or repair and maintenance – continues to exceed historical appropriations that have been limited due to budget constraints.
The 21st Century School Fund, a national public policy institute, reported that Hawaii ranked last in the United States, including the District of Columbia, for per-student capital expenditures. In 2010, Hawaii spent $298 per student on school capital expenditures, compared with a national average of over $1,000 per student. Despite the need to modernize public school facilities statewide, government is left with inadequate funding for repair and maintenance or necessary investments for new or upgraded facilities to meet competitive and modern demands of twenty-first century learning. Thus in the 2012 legislative session, legislature appropriated funds for DOE to conduct strategic planning for facilities.
The legislature recognizes that because public funds to meet school facilities needs are severely limited, a new, innovative approach is needed to complement traditional general fund appropriations to bring Hawaii's public schools into the twenty-first century. The public school lands of the state's two hundred fifty-four school campuses, some of which are considered underutilized, are an untapped resource. Public private partnerships to use these lands differently would provide opportunities for the State to use available lands to enable twenty-first century facilities. Leasing the underutilized lands can generate income to upgrade existing schools or construct new schools to twenty-first century standards and opportunities. By engaging in public-private partnerships, refocusing uses of these properties will support community-driven redevelopment and help communities make better use of land while increasing educational and economic opportunities for the benefit of Hawaii's public school children. Any use of public lands must be compatible with and provide benefits to the surrounding community. Teachers, administrators, students, parents, community residents and other stakeholders must play a meaningful role in the planning, design and partnership between the school and surrounding community.
Lastly, the legislature notes that the Hawaii community development authority was created by the legislature in 1976 to redevelop underutilized designated community development districts, such as Kakaako and Kalaeloa, by promoting and coordinating public and private sector community development. With its proven track record in engaging in public-private partnerships to maximize the use of public lands under its jurisdiction, the legislature finds that the Hawaii community development authority is the appropriate entity to carry out the redevelopment of public school lands, in conjunction with the department of education, to facilitate the construction of twenty-first century learning facilities.
The purpose of this Act is to grant the Hawaii community development authority the responsibility to facilitate the redevelopment of public school lands in order to generate income to improve public school facilities and infrastructure to meet the challenges of the twenty-first century.
SECTION 2. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"PART . TWENTY-FIRST CENTURY SCHOOLS
§206E- Definitions. As used in this part:
"Public school lands" means all lands under the management of the department of education on or after July 1, 2013, that are used or dedicated for use for kindergarten, elementary, and secondary schools, and other facilities, including public libraries. "Public school lands" shall not include lands owned by the federal government, or any private person or entity.
"Public school facilities redevelopment" includes the modernization and construction of public schools, the use or lease of public school lands that are not required for the use of public schools, and the development of lands associated with the redevelopment of public school lands.
§206E- Twenty-first century schools; authorization to develop public school lands. (a) The authority shall be the designated agency of the state to implement this part.
(b) The authority shall act as the redevelopment authority to facilitate the redevelopment of certain public school lands as identified by the department of education and authorized by the board of education. The redevelopment of public school lands shall be in accordance with the powers and process of the authority as set forth in this chapter.
§206E- Public school facilities redevelopment guidance policies. The following development guidance policies shall generally govern the authority's action in the redevelopment of public school lands:
(1) The redevelopment of public school lands shall be a means to advance public education and student achievement by funding, modernizing, and constructing twenty-first century schools;
(2) The authority shall consult with the department of education on the design and building specifications when redeveloping public schools;
(3) Modernizing and constructing new public schools shall utilize energy efficiency and other sustainability measures, use available land efficiently, maximize student safety, and offer the community multiple use of existing structures;
(4) New public schools shall be equipped with the latest in technology to facilitate teaching and learning;
(5) Classrooms may feature flexible and adaptable floor plans based on research and effective practices; and
(6) A community engagement process shall be integrated as part of the authority's redevelopment activities.
§206E- Twenty-first century school sites and criteria; department of education. (a) The department of education shall establish minimum criteria and standards for twenty-first century school projects.
(b) The department of education shall identify specific sites that may be used for twenty-first century school projects and shall coordinate with the department of accounting and general services and the authority for the development of these sites.
§206E- Proceeds from public school lands. Proceeds from the use or redevelopment of public school lands shall be deposited into the school facilities special fund established under section 171C-21, less any costs incurred by the authority for the use or redevelopment of public school lands under this part."
SECTION 3. Section 171C-21, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is established a school facilities special fund into which shall be deposited all proceeds from leases, permits, interest income generated from public school lands and facilities, including proceeds derived from part of chapter 206E, and other revenue generated from the non-permanent disposition of public school lands and facilities under this chapter, less the following:
(1) The principal and interest on bonds issued pursuant to this chapter or part of chapter 206E for projects on public school lands or utilizing public school facilities;
(2) The cost of administering, operating, and maintaining projects on public school lands or utilizing public school facilities, not to exceed fifteen per cent of the sums collected, net of principal and interest payments on bonds; and
(3) Other sums that may be necessary for the issuance
of bonds under this chapter[
.] or part of chapter 206E."
SECTION 4. Section 206E-1, Hawaii Revised Statutes, is amended to read as follows:
"§206E-1 Findings and purpose. The legislature finds that many areas of the State are substantially undeveloped, blighted, or economically depressed, and are or are potentially in need of renewal, renovation, or improvement to alleviate such conditions as dilapidation, deterioration, age, and other such factors or conditions which make such areas an economic or social liability.
The legislature further finds that there exists within the State vast, unmet community development needs. These include, but are not limited to, undercapitalized public school facilities; a lack of suitable affordable housing; insufficient commercial and industrial facilities for rent; residential areas which do not have facilities necessary for basic liveability, such as parks and open space; and areas which are planned for extensive land allocation to one, rather than mixed uses.
It is further determined that the lack of planning and coordination in such areas has given rise to these community development needs and that existing laws and public and private mechanisms have either proven incapable or inadequate to facilitate timely redevelopment and renewal.
The legislature finds that a new and comprehensive authority for public school facilities and community development must be created to join the strengths of private enterprise, public development and regulation into a new form capable of long-range planning and implementation of improved community development. The purpose of this chapter is to establish such a mechanism in the Hawaii community development authority, a public entity which shall determine public school facilities redevelopment and community development programs and cooperate with private enterprise and the various components of federal, state, and county governments in bringing plans to fruition. For such public school lands and areas designated as community development districts, the legislature believes that the planning and implementation program of the Hawaii community development authority will result in communities which serve the highest needs and aspirations of Hawaii's people.
The legislature finds that the creation of the Hawaii community development authority, the establishment of community development districts, the establishment of public school facilities redevelopment sites, and the issuance of bonds pursuant to this chapter to finance public facilities serve the public interest and are matters of statewide concern."
SECTION 5. Section 206E-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The authority shall consist of nine voting members for each community development district established in this chapter. The director of finance, the director of business, economic development, and tourism, the comptroller, and the director of transportation, or their respective designated representatives, shall serve as ex officio, voting members of the authority; provided that, in addition:
(1) A cultural expert shall be appointed by the governor pursuant to section 26-34 as a voting member;
(2) One member shall be appointed by the governor pursuant to section 26-34 as a voting member; provided further that this paragraph shall not apply to the Kalaeloa community development district; and
(3) The chairperson of the Hawaiian homes commission or the chairperson's designee, shall serve as an ex officio, voting member for the Kalaeloa community development district only, shall be considered in determining quorum and majority only on issues relating to the Kalaeloa community development district, and shall vote only on issues relating to the Kalaeloa community development district.
Three additional members, hereinafter referred to as county members, shall be selected by the governor from a list of ten prospective appointees recommended by the local governing body of the county in which each designated district is situated; provided that when vacancies occur in any of the three positions for which the members were selected from a list of county recommendations, the governor shall fill such vacancies on the basis of one from a list of four recommendations, two from a list of seven recommendations, or three from a list of ten recommendations. The list of recommendations shall be made by the local governing body of the county. Of the three members appointed as county members recommended by the local governing body of the county in which each designated district is situated, two members shall represent small businesses and shall be designated as the small business representatives on the board whose purpose, among other things, is to vote on matters before the board that affect small businesses. The small business representatives shall be owners or active managers of a small business with its principal place of operation located within the physical boundaries of each designated district. Notwithstanding section 84-14(a), the small business representatives may vote on any matter concerning any district under the board's jurisdiction other than matters concerning the Heeia community development district; provided that the matter is not limited to solely benefiting the specific interest of that member and the matter concerns broader interests within the district. One of the county members shall be a resident of the designated district; provided that for purposes of this section, the county member who is a resident of the Kalaeloa community development district shall be a resident of the Ewa zone (zone 9, sections 1 through 2), or the Waianae zone (zone 8, sections 1 through 9) of the first tax map key division. The county members shall be considered in determining quorum and majority only on issues not relating to the Heeia community development district and may only vote on issues not related to the Heeia community development district.
Three additional voting members shall be appointed to the authority by the governor pursuant to section 26-34 to represent the Heeia community development district. These three members shall be considered in determining quorum and majority only on issues relating to the Heeia community development district and may vote only on issues related to the Heeia community development district. The three members shall be residents of the Heeia community development district or the Koolaupoko district which consists of sections 1 through 9 of zone 4 of the first tax map key division.
Seven additional voting members shall, except as otherwise provided in this subsection, be appointed to the authority by the governor pursuant to section 26-34 on matters related to public school facilities redevelopment. These members shall be considered in determining quorum and majority only on issues relating to public school facilities redevelopment, and may vote only on issues relating to public school facilities redevelopment. The seven members shall consist of the superintendent of education, or the superintendent's designee; a school design specialist; a Hawaiian cultural specialist; and four at-large members.
If an additional district is designated by the legislature, the governor shall appoint three county members as prescribed above for each additional designated district.
Notwithstanding section 92-15, a majority of all members shall constitute a quorum to do business, and the concurrence of a majority of all members shall be necessary to make any action of the authority valid; except as provided in this subsection. All members shall continue in office until their respective successors have been appointed and qualified. Except as herein provided, no member appointed under this subsection shall be an officer or employee of the State or its political subdivisions.
For purposes of this section, "small business" means a business which is independently owned and which is not dominant in its field of operation."
SECTION 6. Section 206E-4, Hawaii Revised Statutes, is amended to read as follows:
"§206E-4 Powers; generally. Except as otherwise limited by this chapter, the authority may:
(1) Sue and be sued;
(2) Have a seal and alter the same at pleasure;
(3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;
(4) Make and alter bylaws for its organization and internal management;
(5) Make rules with respect to its projects, operations, properties, and facilities, which rules shall be in conformance with chapter 91;
(6) Through its executive director appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapter 76;
(7) Prepare or cause to be prepared a community
development plan for all designated community development districts[
and public school facilities;
(8) Acquire, reacquire, or contract to acquire or reacquire by grant or purchase real, personal, or mixed property or any interest therein; to own, hold, clear, improve, and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, or otherwise dispose of or encumber the same;
(9) Acquire or reacquire by condemnation real, personal, or mixed property or any interest therein for public facilities, including but not limited to streets, sidewalks, parks, schools, and other public improvements;
(10) By itself, or in partnership with qualified persons, acquire, reacquire, construct, reconstruct, rehabilitate, improve, alter, or repair or provide for the construction, reconstruction, improvement, alteration, or repair of any project; own, hold, 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; and repurchase or otherwise acquire any project which the authority has theretofore sold or otherwise conveyed, transferred, or disposed of;
(11) Arrange or contract for the planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, or other places, or for the furnishing of facilities or for the acquisition of property or property rights or for the furnishing of property or services in connection with a project;
(12) Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on such terms and conditions as it deems advisable;
(13) Prepare or cause to be prepared plans, specifications, designs, and estimates of costs for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project, and from time to time to modify such plans, specifications, designs, or estimates;
(14) Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;
(15) Procure insurance against any loss in connection with its property and other assets and operations in such amounts and from such insurers as it deems desirable;
(16) Contract for and accept gifts or grants in any form from any public agency or from any other source;
(17) Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this chapter;
(18) Allow satisfaction of any affordable housing requirements imposed by the authority upon any proposed development project through the construction of reserved housing, as defined in section 206E-101, by a person on land located outside the geographic boundaries of the authority's jurisdiction; provided that the authority shall not permit any person to make cash payments in lieu of providing reserved housing, except to account for any fractional unit that results after calculating the percentage requirement against residential floor space or total number of units developed. The substituted housing shall be located on the same island as the development project and shall be substantially equal in value to the required reserved housing units that were to be developed on site. The authority shall establish the following priority in the development of reserved housing:
(A) Within the community development district;
(B) Within areas immediately surrounding the community development district;
(C) Areas within the central urban core;
(D) In outlying areas within the same island as the development project.
The Hawaii community development authority shall adopt rules relating to the approval of reserved housing that are developed outside of a community development district. The rules shall include, but are not limited to, the establishment of guidelines to ensure compliance with the above priorities; and
(19) Assist the public land development corporation established by section 171C-3 in identifying public lands that may be suitable for development, carrying on marketing analysis to determine the best revenue-generating programs for the public lands identified, entering into public-private agreements to appropriately develop the public lands identified, and providing the leadership for the development, financing, improvement, or enhancement of the selected development opportunities; provided that no assistance shall be provided unless the authority authorizes the assistance."
SECTION 7. Section 206E-6, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:
"(g) All sums collected under this section shall be deposited in the Hawaii community development revolving fund established by section 206E-16; except that notwithstanding section 206E-16, all moneys collected on account of assessments and interest thereon for any specific public facilities financed by the issuance of bonds shall be set apart in a separate special fund and applied solely to the payment of the principal and interest on these bonds, the cost of administering, operating, and maintaining the program, the establishment of reserves, and other purposes as may be authorized in the proceedings providing for the issuance of the bonds. If any surplus remains in any special fund after the payment of the bonds chargeable against such fund, it shall be credited to and become a part of the Hawaii community development revolving fund. Moneys in the Hawaii community development revolving fund may be used to make up any deficiencies in the special fund. Costs incurred by the authority for projects under part of this chapter shall be reimbursed by the school facilities special fund established under section 171C-21."
SECTION 8. Section 206E-8, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Any provision of chapter 171 to the contrary notwithstanding, the governor may set aside public lands located within community development districts and public school lands to the authority for its use."
SECTION 9. 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 2013-2014 and the same sum or so much thereof as may be necessary for fiscal year 2014-2015 for purposes of implementing this Act.
The sums appropriated shall be expended by the Hawaii community development authority.
SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 11. This Act shall take effect on July 1, 2013.
Twenty-first Century Schools; HCDA
Establishes framework for the development of twenty-first century schools through the redevelopment of public school lands by the Hawaii Community Development Authority.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.