STAND. COM. REP. NO. 501

Honolulu, Hawaii

RE: S.B. No. 832

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 832 entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Authorize the counties to transfer land to the School Facilities Authority;

(2) Exempt the School Facilities Authority from taxes;

(3) Authorize state and county agencies to render services to the School Facilities Authority upon request; and

(4) Establish a deadline for the transfer of properties to the Department of Education from the City and County of Honolulu required by Act 272, Session Laws of Hawaii 2019.

Your Committee received testimony in support of this measure from the School Facilities Authority. Your Committee received comments on this measure from the Department of the Attorney General.

Your Committee finds that the School Facilities Authority is statutorily empowered to redevelop Hawaii's schools into twenty-first century institutions. The redevelopment of Hawaii's schools into vertical schools, teacher and workforce housing, and spaces for community services addresses critical education policy issues and allows Hawaii's keiki to thrive in academic and extracurricular settings. By authorizing the School Facilities Authority to work with various state partners, while also addressing crucial land transfers, the School Facilities Authority can streamline the process to effectuate its work for the benefit of Hawaii's education system.

Your Committee has amended this measure by:

(1) Authorizing the School Facilities Authority to engage in commercial enterprise activities for the purpose of revenue generation;

(2) Authorizing the School Facilities Authority to contract to manage the leasing and property management of housing projects; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 832, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 832, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Education,

________________________________

MICHELLE N. KIDANI, Chair