RELATING TO SCHOOL FACILITIES.

SB2541

THE SENATE

S.B. NO.

2541

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to 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's public school system is a foundational public
asset that is facing significant challenges.
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Projections from the Western Interstate
Commission for Higher Education indicate that Hawaii is expected to experience
the nation's steepest decline in high school graduates over the next sixteen
years, with enrollment decreases likely to accelerate.

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The legislature further finds that, while
statewide public school enrollment today is nearly the same as it was in 1961,
the number of schools has increased by approximately twenty per cent.
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Decades of enrollment growth led to the
construction of new campuses, but the recent and continuing decline in student
numbers has left many facilities underutilized.
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This imbalance has created operational
inefficiencies and diverted resources that could otherwise be used to support
student learning or modernize facilities in high-need areas.
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The legislature also finds that prior efforts
to consolidate or close schools have often been slow, inconsistent, and subject
to political delay.
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In light of
declining enrollment, potential reductions in federal funding, and the State's
need for fiscal prudence, a proactive and data-driven process is required to optimize
the public school system for the twenty-first century.
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The legislature finds that the federal Base
Realignment and Closure process provides a proven and effective model for
making complex and politically sensitive infrastructure decisions.
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By establishing an independent commission and
requiring an "all‑or‑nothing" vote on its
recommendations, the Base Realignment and Closure model ensures that decisions
are guided by objective data and the overall public interest rather than
localized political pressures.

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The purpose of this Act is to establish a
temporary, independent public school realignment and closure commission to
review the State's public school facilities and recommend a comprehensive
package of consolidations, realignments, or closures for an expedited,
up-or-down approval process by the governor and the legislature.

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SECTION 2.
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(a)
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There is established a temporary public school
realignment and closure commission to be placed within the department of
accounting and general services for administrative purposes only.

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For purposes of this Act,
"commission" means the public school realignment and closure
commission established by this Act.

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(b)
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The commission shall consist of nine members
appointed for a term to expire upon the dissolution of the commission as
provided in this Act.
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The members shall comprise:

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(1)
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Three
members appointed by the governor without regard to section 26-34, Hawaii
Revised Statutes;

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(2)
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Three
members appointed by the president of the senate; and

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(3)
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Three
members appointed by the speaker of the house of representatives.

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(c)
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Appointees
shall have expertise in one or more of the following fields:
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public finance, urban planning, real estate,
education administration, or facilities management.
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No person who is a current elected official;
registered lobbyist; or member or employee of the department of education,
board of education, school facilities authority, or school facilities authority
board shall be eligible to serve on the commission.

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

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(e)
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The
department of accounting and general services shall provide to the commission
any administrative support it deems necessary to fulfill the duties of the
commission.

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(f)
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The commission shall:

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(1)
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Develop
and adopt, after public hearings, a comprehensive and objective set of criteria
to be used in evaluating public school facilities for potential consolidation,
realignment, or closure.
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These criteria
shall include:

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(A)
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The facility's:

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(i)
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Current
and projected student enrollment data;

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(ii)
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Condition, including any deferred maintenance
backlogs or capital improvement needs;

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(iii)
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Annual operational costs and cost per pupil;
and

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(iv)
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Building capacity and utilization rates;

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(B)
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The
geographic proximity and capacity of other schools in the area;

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(C)
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The
potential for reuse, sale, or redevelopment of school properties; and

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(D)
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Equity
considerations, including the impact of a potential consolidation, realignment,
or closure on students from disadvantaged communities.

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(2)
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Request
and receive from the department of education, school facilities authority, and
any other state or county agency any data necessary to conduct its evaluation;

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(3)
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Conduct
a statewide review of public school facilities based on the criteria adopted
pursuant to paragraph (1); and

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(4)
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Prepare
and submit to the legislature and governor, no later than October 1, 2027, a
final report containing a single, comprehensive list of recommendations for the
consolidation, realignment, or closure of specific public schools.
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The report shall include a detailed
justification for each recommendation based on the adopted criteria and an
estimate of the net savings and costs associated with each recommendation.

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(g)
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The commission shall be subject to chapter 92,
Hawaii Revised Statutes.

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(h)
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No later than November 15, 2027, the governor
shall:

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(1)
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Approve
or disapprove the commission's report in its entirety, without amendment; or

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(2)
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Transmit
the report, if approved, to the legislature for final consideration.

If the
governor does not approve or disapprove the report by the deadline, the report
shall be deemed approved and shall be transmitted to the legislature for final
consideration.

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(i)
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If
the governor disapproves the report, it shall be returned to the commission
with the reasons for disapproval, and the commission may submit a revised
report to the governor no later than December 15, 2027.
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No later than January 1, 2028, the governor
shall:

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(1)
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Approve
or disapprove the revised report in its entirety, without amendment; or

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(2)
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Transmit
the revised report, if approved, to the legislature for final consideration.

If the
governor does not approve or disapprove the revised report by the deadline, the
revised report shall be deemed approved and shall be transmitted to the
legislature for final consideration.
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If
the governor disapproves the revised report, the process shall be terminated,
and the commission shall take no further action.

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(j)
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If the governor approves the commission's
original or revised report, the legislature shall vote on a concurrent
resolution during the regular session of 2028 to either approve or disapprove
the report in its entirety, without amendment.

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(k)
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If
a concurrent resolution for approval is adopted by the legislature, or if the
legislature fails to adopt a concurrent resolution for disapproval by the adjournment
sine die of the regular session of 2028, the recommendations in the report
shall be binding and shall be implemented by the board of education and
department of education.

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SECTION 4.
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(a)
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The
board of education and department of education shall take all necessary actions
to implement the commission's approved recommendations no later than July 1, 2028.

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(b)
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Jurisdiction and control over any real
property of a school closed pursuant to this Act shall be transferred to the
school facilities authority for disposition.
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Any proceeds from the sale or lease of the
property shall be deposited into the school facilities special fund established
under section 302A‑1706, Hawaii Revised Statutes.

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SECTION 5.
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The public school realignment and closure
commission shall cease to exist on June 30, 2028.

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SECTION 6.
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There is appropriated out of the general
revenues of the State of Hawaii the sum of $100,000 or so much thereof as may
be necessary for fiscal year 2026-2027 for the operational costs of the public
school realignment and closure commission.

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The sum appropriated shall be expended by
the department of accounting and general services for the purposes of this Act.

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SECTION 7.
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This Act shall take effect upon its approval;
provided that section 6 shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

Public School Realignment and Closure Commission;
Department of Accounting and General Services; Department of Education;
Appropriation

Description:

Establishes
a temporary, independent Public School Realignment and Closure Commission to
develop and recommend a comprehensive package of school consolidations,
realignments, and closures based on the federal Base Realignment and Closure
model.
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Requires an expedited approval
process by the Governor and Legislature.
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Appropriates moneys.

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