CONFERENCE COMMITTEE REP. NO. 132-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1713

H.D. 1

S.D. 1

C.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madam and Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1713, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SCHOOL IMPACT FEES,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Prohibit the Land Use Commission from imposing exactions from a residential development for educational purposes;

(2) Repeal school impact fees;

(3) Repeal a requirement that the School Facilities Authority submit a report to the Legislature;

(4) Abolish school impact fee subaccounts within the School Facilities Special Fund and transfer unencumbered balances to the School Facilities Special Fund, and establish certain conditions with regard to the transferred funds;

(5) Abolish the fair share contribution and impact fee accounts within the Department of Education Donations - Facilities Trust and transfer unencumbered balances to the School Facilities Special Fund;

(6) Specify that any existing educational contribution agreements or written agreements executed with the Department of Education or School Facilities Authority before the repeal of school impact fees remain in effect unless mutually terminated by the parties;

(7) Transfer existing educational contribution agreements from the Department of Education to the School Facilities Authority; and

(8) Appropriate funds out of the School Facilities Special Fund for priority education facilities projects, including the expansion of pre-kindergarten facilities.

Your Committee on Conference has amended this measure by:

(1) Reverting to the original version as introduced, which clarifies the application of school impact fee exemptions for certain affordable housing projects, including exempting new residential developments of fewer than one hundred dwelling units; and

(2) Further amending this measure by:

(A) Increasing the dwelling unit threshold for housing projects exempt from school impact fees from fewer than one hundred units to fewer than five hundred units;

(B) Expanding the types of projects and units that are exempt from school impact fees;

(C) Clarifying procedures and timing for land dedication or fee in lieu agreements and limiting their application to subdivisions, developments, or projects for which an application for approval is submitted on or after the effective date of this measure;

(D) Repealing the sunset date and reporting requirement under Act 268, Session Laws of Hawaii 2025, relating to school impact fees;

(E) Abolishing certain impact fee accounts within the Donations – Facilities Trust (EDN 400) and lapsing any unencumbered funds to the appropriate subaccounts within the School Facilities Special Fund;

(F) Preserving existing educational contribution agreements executed or entered into by or on behalf of the Department of Education;

(G) Specifying that any existing educational contribution agreements executed with the Department of Education or School Facilities Authority before the repeal of school impact fees remain in effect unless mutually terminated by the parties;

(H) Changing the effective date to upon approval; and

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

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1713, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1713, H.D. 1, S.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ STANLEY CHANG Chair	____________________________ LUKE A. EVSLIN Co-Chair
____________________________ DONNA MERCADO KIM Co-Chair	____________________________ TYSON K. MIYAKE Co-Chair
____________________________ TROY N. HASHIMOTO Co-Chair