RELATING TO THE UNIVERSITY OF HAWAII.

SB2674

THE SENATE

S.B. NO.

2674

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the University of hawaii
.

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 hands-on,
real-world experience is a critical component of higher education, particularly
in fields such as hospitality, agriculture, culinary arts, and business
management.
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To provide this essential
training, the university of Hawaii must be able to operate "teaching
laboratories," facilities that function as active businesses to give
students practical experience in their chosen careers.

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The
legislature further finds that these educational laboratories often mimic
commercial enterprises in their operations, such as teaching hotels or culinary
centers.
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Consequently, these facilities
can face regulatory hurdles at the county level, where zoning codes and
requirements for special use permits, designed for commercial entities, are
applied to educational institutions.
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For
example, the university of Hawaii Maui college's hospitality academy seeks to
operate a limited number of guest rooms for student training but faces zoning
challenges regarding the collection of fees and the requirement for special use
permits.

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The
legislature determines that the educational mission of the university of Hawaii
is a matter of statewide concern. Subjecting university educational programs to
varying county zoning ordinances and discretionary permit processes hinders the
development of necessary workforce training programs.

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The purpose of this Act is to authorize the
university of Hawaii to engage in enterprise-related activities that have an
educational nexus on its campuses statewide, notwithstanding county zoning laws
or requirements for special use permits.

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SECTION
2.
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Chapter 304A, Hawaii Revised
Statutes, is amended by adding a new section to be appropriately designated and
to read as follows:

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�304A-
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Enterprise-related activities;
educational nexus; exemption from county regulation.
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(a) Notwithstanding any law, county
ordinance, or county zoning regulation to the contrary, the university of
Hawaii may engage in enterprise-related activities on any lands under its
control, provided that the activity has a demonstrable educational nexus.

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(b)
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For the purposes of this section, an
"educational nexus" exists when the enterprise-related activity:

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(1)
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Is integrated into a credit-bearing
curriculum, certificate program, or workforce development program offered by
the university;

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(2)
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Provides practical, hands-on
training or research opportunities for students; and

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(3)
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Is conducted primarily for
educational purposes rather than solely for profit.

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(c)
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Activities authorized under this section
shall be exempt from county zoning ordinances, land use restrictions, and
requirements for special use permits, conditional use permits, or similar
county-level land use approvals.

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(d)
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Authorized enterprise-related activities may
include:

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(1)
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Hospitality training laboratories,
including the operation of guest rooms and the collection of lodging fees;
provided that the hospitality training laboratories are used to train students
in hospitality, tourism, or business management;

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(2)
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Culinary, agricultural, or retail
operations that sell goods or services produced by university programs; and

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(3)
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Other training facilities as
designated by the board of regents.

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(e)
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Any revenue generated by these activities
shall be retained by the university program operating the activity to defray
costs, maintain facilities, or support student scholarships.

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(f)
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While exempt from zoning permits, these
facilities shall remain subject to applicable state health and safety codes
and, where applicable, general excise and transient accommodations taxes.
"

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SECTION
3.
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New statutory material is
underscored.

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SECTION
4.
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This Act shall take effect upon its
approval.

INTRODUCED BY:

_____________________________

Report Title:

UH;
Enterprise-Related Activities

Description:

Authorizes
the University of Hawaii to engage in enterprise-related activities for
educational purposes.

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