Bill Text: HI SB1385 | 2011 | Regular Session | Amended
Bill Title: Education; Public School Lands; Leases; Tax Credit
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Engrossed - Dead) 2011-04-28 - (S) Conference committee meeting to reconvene on 04-29-11 1:30PM in conference room 329. [SB1385 Detail]
Download: Hawaii-2011-SB1385-Amended.html
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THE SENATE |
S.B. NO. |
1385 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 2 |
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A BILL FOR AN ACT
RELATING TO PUBLIC SCHOOL LANDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that one of the major educational dilemmas of our time is rooted in an existing system that traps information-age students in agricultural-age schools. While the flow of information and ideas is increasingly fluid, students are confined to the physical structures and mindsets of an earlier time and place. Building, repairing, and retrofitting public schools to meet the challenges of the twenty-first century and beyond will not be easy, and the costs will be considerable. However, quality school infrastructure facilitates an environment that will prepare children to achieve and succeed in a highly competitive economy.
The infrastructure of the twenty-first century school must be energy efficient and wired with the latest technology. Classroom size must be flexible because the program, not the space, should determine the number of students per class. The school campus must be designed from its inception with student achievement in mind to maximize available land and student safety, and to offer the community multiple uses of existing structures. Most of Hawaii's school campuses fall short in these areas.
The considerable amount of underused public school lands on the State's two hundred fifty-seven school campuses is an untapped resource that lies within reach and would facilitate infrastructure that could make classrooms and campuses suitable for twenty-first century learning. By way of illustration, a preliminary review by a real estate expert indicates that ten parcels that have unused lands are valued at $120,000,000 under existing surrounding uses. These lands could be developed solely for the benefit of Hawaii's public school children. The beneficiaries would be the children of Hawaii.
The purpose of this Act is to optimize the use of public school lands to generate opportunities to improve public school facilities and infrastructure to meet the challenges of the twenty-first century and overall, to improve the quality of education in Hawaii. In particular, this Act establishes a three-year pilot project to generate revenue from uses such as workforce housing to build and retrofit twenty-first century schools. The pilot project will lay important groundwork for a statewide approach and plan to optimize public school lands and modernize public school facilities. This Act also establishes a school facilities advisory board to provide guidance to the department of education on ways to optimize the use of public school lands, and creates the school facilities special fund to deposit all proceeds generated from the use or lease of public school lands. Moneys in the school facilities special fund will be used to build or upgrade twenty-first century school facilities.
SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows:
"§302A-A Lease of lands under the control of the board. (a) Notwithstanding sections 302A-1151 and 171-13, or any other law to the contrary, the department, with the approval of the board, may lease public school land on terms it deems appropriate; provided that:
(1) The department may lease public school land for not more than ten existing schools under a lease for a term of not more than fifty-five years to a lessee who shall be required to construct workforce rental housing units at affordable rental rates in accordance with specific request for proposal guidelines; and
(2) The lease stipulates that the lessee may retain the rental proceeds; provided that:
(A) The lessee shall be obligated to maintain and operate the workforce rental housing units for the length of the lease;
(B) The lessee shall be subject to payment to the county of all property tax on the value of the non-school improvements;
(C) A leasehold premium shall be paid for the right to use the land based upon a competitive bid process pursuant to chapter 103D;
(D) Upon the expiration of the lease, the workforce rental housing units shall revert to the department; and
(E) All revenues and proceeds derived under this section shall be deposited in the school facilities special fund established under section 302A-B.
(b) As additional compensation, the board may require a lessee to construct a new public school or substantially remodel existing schools at no cost to the board, department, and State; provided that the design, construction plans, and specification for the public school shall be specifically provided by the department at the direction of the board, and be specifically detailed in the request for proposal bid process in accordance with chapter 103D.
(c) The lessee shall be selected by the department with a recommendation to the board after a competitive bid process is conducted pursuant to chapter 103D.
(d) Uses permitted under a lease shall include:
(1) Workforce rental housing units and uses ancillary to the rental housing community that are in accordance with applicable zoning ordinances; and
(2) Public schools.
(e) All proceeds generated through leases entered into under a competitive bid process administered by the board for workforce rental housing units pursuant to this section shall be used exclusively for the new construction and upgrade of twenty-first century public school facilities. All leased land revenues and proceeds generated from public school lands pursuant to this section shall be deposited into the school facilities special fund established under section 302A-B.
§302A-B School facilities special fund. (a) There is established a school facilities special fund into which shall be deposited all proceeds from the leases, permits, interest from sale contracts, interest income generated from public school lands, and other revenue generated from the non-permanent disposition of public school lands under section 302A-A.
(b) The school facilities special fund shall be administered by the department. Except as otherwise provided, all moneys in the school facilities special fund shall be used exclusively for the new construction and upgrade of twenty-first century school facilities.
§302A-C School facilities advisory board. There is established within the department a school facilities advisory board to be composed of seven real estate, land use development, and education professionals. Members of the advisory board shall be appointed by the board and shall provide the department with advice, expertise, and guidance on the construction, management, and redevelopment of public school lands and facilities. Members of the advisory board shall serve without compensation but shall be reimbursed for travel expenses incurred in the performance of their duties. The advisory board may advise the department in the following activities, to include but not be limited to:
(1) Identifying excess and underused public school lands and public school land sites with the potential for redevelopment;
(2) Developing a strategic plan and implementation schedule for the redevelopment of public school lands;
(3) Consistent with the department's strategic plans, preparing development plans for school sites that have the potential to generate revenues along with improving school facilities at the respective sites; and
(4) Recommending the issuance of special purpose revenue bonds for the purpose of loaning or otherwise applying bond proceeds in accordance with redevelopment projects approved by the department."
SECTION 3. (a) Within twelve months of the effective date of this Act, in collaboration with the school facilities advisory board, the department of education shall:
(1) Research, evaluate, and where appropriate implement measures to further develop a systematic process, mechanism, and policies to optimize the use of public school lands to build, upgrade, and renovate all schools to enable students to compete in the twenty-first century;
(2) Recommend legislation relating to the statutory and procedural changes required to resolve pending land tenure issues relating to the use, sale, or lease of public school lands, which may include the creation of a public schools land trust; and
(3) Develop a comprehensive master plan and implementation schedule to optimize public school lands for the development of twenty-first century schools.
(b) The department of education, in collaboration with the school facilities advisory board shall submit a report to the legislature, including a summary of the department's activities, results, and recommendations to optimize the use of public school lands as a means to build or renovate twenty-first century schools, no later than twenty days prior to the convening of the 2013 regular session.
SECTION 4. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 5. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2030; provided that section 302A-A, Hawaii Revised Statutes, in section 2 shall be repealed on June 30, 2014.
Report Title:
Education; Public School Lands; Leases; Tax Credit
Description:
Permits the Department of Education, with the approval of the Board of Education, to lease certain public school lands for the development of affordable workforce housing rental units under specified conditions. Establishes the School Facilities Special Fund. Effective July 1, 2030. (SB1385 HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
