HB2344 CD1

SECTION 1. The legislature finds that Hawaii's public school system is a foundational public asset that is facing significant challenges. 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.

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. 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. 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. The legislature also finds that prior efforts to consolidate or close schools have often been slow, inconsistent, and subject to political delay. 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.

The legislature additionally finds that the federal Base Realignment and Closure process provides a proven and effective model for making complex and politically sensitive infrastructure decisions. 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.

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.

SECTION 2. (a) 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.

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

(1) One voting member appointed by the governor without regard to section 26-34, Hawaii Revised Statutes;

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

(3) One voting member appointed by the minority leader of the senate;

(4) Two voting members appointed by the speaker of the house of representatives;

(5) One voting member appointed by the minority leader of the house of representatives;

(6) The comptroller, or the comptroller's designee, who shall serve as an ex officio, nonvoting member; and

(7) The superintendent of education, or the superintendent's designee, who shall serve as an ex officio, nonvoting member.

The voting members of the commission shall elect a chairperson from among the voting members.

(c) Each appointee shall have experience in one or more of the following fields: public finance, urban planning, real estate, education administration, or facilities management. 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 as a voting member of the commission.

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

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

(f) The commission shall:

(1) 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. The criteria shall include:

(A) The facility's:

(i) Current and projected student enrollment data;

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

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

(iv) Building capacity and utilization rates;

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

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

(E) The academic needs of students, with specific consideration for students receiving special education services; and

(F) The logistical feasibility of transition plans for affected students and staff;

(2) 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, including any existing reports, data, and analyses from the department of education regarding ongoing school consolidation efforts;

(3) Formally consult with the board of education during the development of the criteria and the evaluation of public school facilities to ensure educational priorities are considered; and

(4) Conduct a statewide review of public school facilities based on the criteria adopted pursuant to paragraph (1).

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

(h) The commission shall prepare a preliminary report containing its proposed recommendations for the consolidation, realignment, or closure of specific public schools. Within one hundred days of the appointment of all voting members to the commission, the commission shall publish a public notice of the preliminary report in each county.

(i) Following the initial public notice, the commission shall hold at least one public hearing on the preliminary report in each county. The commission shall provide at least twenty days of advance notice prior to each public hearing. The notice shall include a statement summarizing the substance of the preliminary report and the date, time, and location where interested persons may be heard.

(j) At each public hearing, all interested persons shall be afforded an opportunity to submit data, views, or arguments, either orally or in writing, for the commission to consider.

(k) Following the public hearings, the commission shall issue a final report and comprehensive list of recommendations, which may include a timeline for phased consolidations, realignments, or closures. No later than October 1, 2028, the commission shall file the final report with the governor, president of the senate, speaker of the house of representatives, and board of education.

(l) Upon filing of the final report pursuant to subsection (k), the recommendations contained in the final report shall become final and binding. No further approval by the governor, legislature, or board of education shall be required.

(m) The board of education and department of education shall take all necessary actions to implement the binding recommendations of the commission pursuant to this section no later than October 1, 2029, and may implement the recommendations in phases as outlined in the final report of the commission.

SECTION 3. The board of education and department of education shall cooperate with the commission and supply the commission with any relevant information requested by the commission.

SECTION 4. The public school realignment and closure commission shall cease to exist on June 30, 2029.

SECTION 5. For the purposes of this Act:

"Commission" means the public school realignment and closure commission established by this Act.

"Public school" shall have the same meaning as "department school" as defined in section 302A-101, Hawaii Revised Statutes. "Public school" does not include a charter school governed by chapter 302D, Hawaii Revised Statutes.

"Public school facilities" means facilities of a department school as defined in section 302A-101, Hawaii Revised Statutes. "Public school facilities" does not include facilities of a charter school governed by chapter 302D, Hawaii Revised Statutes.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $150,000 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.

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

SECTION 7. This Act shall take effect on July 31, 2026; provided that section 6 shall take effect on July 1, 2026.

HOUSE OF REPRESENTATIVES	H.B. NO.	2344
THIRTY-THIRD LEGISLATURE, 2026		H.D. 1
STATE OF HAWAII		S.D. 2
		C.D. 1