RELATING TO CHARTER SCHOOL FACILITIES.

SB2024

THE SENATE

S.B. NO.

2024

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to charter school facilities
.

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 Hawaii has some of
the highest public school construction costs in the nation. These costs make it
difficult to provide adequate facilities for students, particularly in areas
experiencing rapid population growth.

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The
legislature further finds that the school facilities authority was established
to deliver public school facilities in a more timely and cost-effective manner,
including through public-private partnerships that leverage private sector
expertise and financing.
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In times of
economic uncertainty, the legislature recognizes the need to prioritize
cost-efficiency and community need.

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The
legislature additionally finds that in some communities, longstanding facility
needs and enrollment growth have outpaced the State's ability to deliver
schools through traditional construction timelines, resulting in overcrowding
and limited access to quality public education options for students and
families.
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In the current fiscal climate,
the legislature believes that innovative, cost-effective delivery models are
even more necessary to respond to urgent community needs while responsibly and
transparently stewarding public resources.

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The purpose of this Act is to:

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(1)
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Require the school facilities authority to
establish a pilot program for the development of proposals for three new public-private
partnership schools;

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(2)
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Empower the school facilities authority to
enter into public-private partnerships for the development of school
facilities, including but not limited to long-term leases, leasebacks,
acquisitions, or sales of land and assets; and

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(3)
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Evaluate the effectiveness of the pilot
program through reports to the legislature.

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SECTION 2.
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Section 302A-1703, Hawaii Revised Statutes,
is amended by amending subsection (c) to read as follows:

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"(c)
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Except as otherwise limited by this chapter,
the authority may also:

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(1)
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Have a seal and
alter the same at its pleasure;

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(2)
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Subject to
subsection (b), make and execute contracts and all other instruments necessary
or convenient for the exercise of its powers and functions under this subpart;

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(3)
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Make and alter
bylaws for its organization and internal management;

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(4)
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Adopt rules
pursuant to chapter 91 with respect to its projects, operations, properties,
and facilities, including qualifications for persons and entities wishing to
enter into a public-private partnership with the authority, as permitted in
paragraph (7);

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(5)
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Acquire or
contract to acquire by grant or purchase real, personal, or mixed property or
any interest therein; to clear, improve, and rehabilitate and to sell, assign,
exchange, transfer, convey, lease, subdivide, or otherwise dispose of or
encumber the same;

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(6)
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Acquire property
by condemnation pursuant to chapter 101;

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(7)
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Enter into
partnerships with qualified persons, including public-private partnerships, as
defined in the authority's rules, to acquire, construct, reconstruct,
rehabilitate, improve, alter, or provide for the
design, financing,

construction, reconstruction, improvement, [
or
] alteration
, or
maintenance
of any project, including prekindergarten facilities[
;
]
,
public charter school facilities, and projects on privately-owned land;
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;

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(8)
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Grant options to
purchase any project or to renew any lease entered into by it in connection
with any of its projects, on terms and conditions as it deems advisable;

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(9)
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Prepare or cause
to be prepared plans, specifications, designs, and estimates of costs for the
construction, reconstruction, rehabilitation, improvement, or alteration of any
project, and from time to time to modify the plans, specifications, designs, or
estimates;

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(10)
�
Procure insurance
against any loss in connection with its property and other assets and
operations in amounts and from insurers as it deems desirable;

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(11)
�
Apply for and
accept gifts or grants in any form from any public agency or from any other
source, including gifts or grants from private individuals and private
entities;

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(12)
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Borrow money or
procure loan guarantees from the federal government for or in aid of any
project the authority is authorized to undertake pursuant to this chapter.
�
Additionally, in connection with borrowing or
procurement of loan guarantees, the authority:

���������
(A)
�
Shall comply with
conditions required by the federal government pursuant to applicable regulation
or required in any contract for federal assistance;

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(B)
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Shall repay
indebtedness incurred pursuant to this section, including any interest thereon;

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(C)
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May execute loan
and security agreements and related contracts with the federal government;

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(D)
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May issue bonds
pledging revenues, assessments, or other taxes as security for indebtedness
incurred pursuant to this section; and

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(E)
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May enter into
financing agreements as that term is defined in section 37D-1;

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(13)
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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;

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(14)
�
Use the department
of human resources development or the department of education to recruit, hire,
and retain exempt employees, architects, engineers, existing civil service
positions, and other technical positions for the development, planning, and
construction related to capital improvement projects;

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(15)
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Partner with
public and private development agencies to develop:

���������
(A)
�
Housing on or off
campus;

���������
(B)
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Classrooms[
;
]

and other public school facilities, including those at public charter
schools;
and

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(C)
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Prekindergarten,
preschool, child care, and early learning program facilities;

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(16)
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Request any state
or county agency to render services to the authority;

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(17)
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Transfer the
property to another public agency or contract to manage the leasing and
property management of housing projects; and

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(18)
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Do any and all
things necessary to carry out its purposes and exercise the powers given and
granted in this subpart."

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SECTION
3.
�
(a)
�

The school facilities authority shall establish a pilot program to
develop three new public schools located in different geographic areas based on
demonstrated need through public-private partnerships, which may include but
are not limited to long-term leases, leasebacks, acquisitions, or sales of land
and assets.

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(b)
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The school facilities authority shall issue
requests for proposals, which shall be evaluated based on:

����
(1)
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Cost savings to the State through a
public-private partnership, including any proposed resource contributions by
the State;

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(2)
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How well the proposal mitigates unmet
community needs for public school capacity in an area, including consideration
of:

���������
(A)
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Projected enrollment growth in the proposed
area; and

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(B)
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Existing public school capacity in the
proposed area;

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(3)
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The quality and durability of the design of
the proposed new school;

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(4)
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The speed of delivery of the proposed new
school;

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(5)
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The availability of suitable public or private
land for the project site; and

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(6)
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Compliance with applicable state laws.

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(c)
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The school facilities authority may conduct a
request for information process prior to issuing any request for proposal to
solicit market feedback and identify potential delivery methods.

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(d)
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The school facilities authority shall submit
an interim report on the progress of the pilot program to the legislature no
later than twenty days prior to the convening of the regular session of
2027.
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The report shall include for each
request for proposals solicitation the geographic area selected:

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(1)
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The number of applicants;

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(2)
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A summary of the project proposed by the
awarded proposal; and

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(3)
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The state contributions proposed by the
awarded proposal, including any state funding the proposal requests for fiscal
year 2027-2028 and fiscal year 2028-2029.

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(e)
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The school facilities authority shall submit
a final report of its findings and recommendations, including any proposed
legislation, to the legislature no later than twenty days prior to the
convening of the regular session of 2028.
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The report shall include an analysis of the costs, efficiencies, and
challenges of the pilot program and a recommendation on whether the program
should be continued, expanded, terminated, or otherwise adapted.

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(f)
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The pilot program shall cease to exist on
June 30, 2028.

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SECTION
4.
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There is appropriated out of the
general revenues of the State of Hawaii the sum of $3,000,000 or so much
thereof as may be necessary for fiscal year 2026-2027 to develop and administer
the requests for proposals for the pilot program as provided in section 3 of
this Act.

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The sum
appropriated shall be expended by the school facilities authority for the
purposes of this Act.

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SECTION 5.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.

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SECTION 6.
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This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

School
Facilities Authority; Pilot Program; Public-private Partnership; Request for
Proposals; Report; Appropriation

Description:

Requires
the School Facilities Authority to establish a pilot program to develop three
new public schools in areas based on demonstrated need through public-private
partnerships.
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Authorizes the School
Facilities Authority to use public-private partnerships for the development of public
school facilities, including facilities at public charter schools.
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Requires reports to the Legislature.
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Appropriates funds.

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