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HB2234
HOUSE OF REPRESENTATIVES
H.B. NO.
2234
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
PROPOSING
AMENDMENTs to article X of the Hawaii state constitution
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1
.
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The legislature finds that Hawai
ʻ
i is the only state in
the nation with a single, centralized public school district funded and
operated exclusively by the State.
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In
every other state, public education is primarily financed through locally
assessed real property taxes.
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As a
result, landowners elsewhere bear a direct and proportionate responsibility for
supporting the education systems that sustain their communities.
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In
contrast, Hawai
ʻ
i's
public schools are funded largely through state income taxes paid by working
families and through the general excise tax, a regressive levy imposed on
nearly all goods and services.
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This
structure has produced some of the lowest property tax rates in the nation.
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These unusually low rates have incentivized
real estate speculation and attracted large-scale investment capital,
contributing to Hawai
ʻ
i
having one of the highest percentages of privately owned land held by
out-of-state investors in the United States.
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The
legislature further finds that this inequitable funding model is not
accidental.
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It is the legacy of the
historic dominance of the large landholding corporations commonly known as the "Big
Five"
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Alexander
& Baldwin, Inc.; Castle & Cooke, Inc.; C. Brewer & Co., Ltd.; Theo
H. Davies & Co., and Amfac (formerly known as American Factors and
originally H. Hackfeld & Co.).
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These
entities used their political and economic power to shape Hawai
ʻ
i's constitutional and
fiscal framework so that the State assumed sole responsibility for education
funding while severely limiting the ability to raise revenue through taxation
of real property.
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This structure
shielded landowners from paying for the education of their workers and tenants;
instead, deducting those costs from wages earned and goods purchased.
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The
legislature finds that the beneficiaries of this system today are no longer
plantation-era corporations, but some of the wealthiest individuals and
investment entities in the world, including billionaire landowners and absentee
investors.
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These individuals enjoy
property tax rates in Hawai
ʻ
i
that are far lower than those imposed on comparable properties in their states
of residence, while their purchasing power inflates land values, drives up
housing costs, and displaces local families.
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This dynamic undermines community stability,
exacerbates inequality, and threatens the long-term viability of local
homeownership in Hawai
ʻ
i.
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The
purpose of this Act is to end longstanding tax inequities, eliminate
preferential treatment for large and absentee landowners, and establish
county-based school districts funded through real property taxes.
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This Act seeks to ensure that those who own
and profit from Hawai
ʻ
i's
land contribute fairly to public education, to reduce the disproportionate tax
burden on working families, to protect local residents, and to strengthen
community accountability and control over public schools.
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SECTION
2
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Article X of the Constitution of the State of
Hawaii is amended by adding a new section to be appropriately designated and to
read as follows:
"
COUNTY
SCHOOL DISTRICTS
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Section
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Each
county shall incorporate and organize a school district for the establishment,
operation and funding of public schools.
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The boundaries of the school district shall be
coextensive with the boundaries of the county.
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The
governing boards of each county school district shall be authorized to initiate
and carry on any programs, activities, or to otherwise act in any manner that
is not in conflict with any law.
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For the
purposes of this section, the county of Kalawao shall be deemed to be included
in the county of Maui.
"
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SECTION
3
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Article X, section 1, of the Constitution of
the State of Hawaii is amended to read as follows:
"
PUBLIC EDUCATION
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Section 1.
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The State shall provide for the
establishment, support and control of [
a statewide system of public schools
free from sectarian control,
] a state university, public libraries and such
other educational institutions as may be deemed desirable, including physical
facilities therefor.
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The
legislature shall provide for a system of public schools.
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There
shall be no discrimination in public educational institutions because of race,
religion, sex or ancestry; nor shall public funds be appropriated for the
support or benefit of any sectarian or nonsectarian private educational
institution, except that proceeds of special purpose revenue bonds authorized
or issued under section 12 of Article VII may be appropriated to finance or
assist:
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1.
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Not-for-profit corporations that provide
early childhood education and care facilities serving the general public; and
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2.
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Not-for-profit private nonsectarian and
sectarian elementary schools, secondary schools, colleges and universities."
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SECTION
4
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The two separate questions to be printed on
the ballot shall be as follows:
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"Shall
the public education system in the State be decentralized by requiring the
creation of county school districts for the establishment, operation, and
funding of public schools?
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If
so, shall the county school districts be permitted to initiate and carry on any
programs, activities, or otherwise
act in any manner that
is not in conflict with any law
?"
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SECTION
5
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Constitutional material to be repealed is
bracketed and stricken.
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New
constitutional material is underscored.
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SECTION
6
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This amendment shall take effect upon
compliance with article XVII, section 3, of the Constitution of the State of
Hawaii.
INTRODUCED BY:
_____________________________
Report Title:
Constitutional
Amendment; Education; Decentralized Public Education; County School Districts
Description:
Proposes
a constitutional amendment to decentralize the public education system in the
State by establishing county school districts for the establishment, operation,
and funding of public schools, and to authorize the boards of those school
districts to initiate and carry on any programs, activities, or otherwise act
in any manner that is not in conflict with any law.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.