HB1713 HD1

SECTION 1. The legislature finds that Hawaii faces a severe housing shortage and that reducing regulatory barriers and development costs is essential to increasing the supply of homes. Impact fees can add substantial costs to housing and may discourage the development of infill units needed within existing communities.

The legislature further finds that the school impact fee program was designed to ensure that new developments contribute their fair share toward school facilities needed to support enrollment growth. The legislature believes that school impact fees are a burden on aspiring homeowners and renters and the collection of these fees does not provide a clear benefit to the community.

The purpose of this Act is to:

(1) Repeal school impact fees; and

(2) Abolish certain fair share contribution accounts and lapse the unencumbered balances to the school facilities special fund.

SECTION 2. Section 302A-1706, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) There is established within the state treasury a special fund to be known as the school facilities special fund into which shall be deposited:

(1) All moneys the authority receives, including funds appropriated or transferred by the legislature for deposit into the special fund;

[~~(2)~~ ~~Funds collected pursuant to section 302A-1608(a); provided that these moneys shall be deposited into the appropriate subaccount established pursuant to subsection (b);~~

~~(3)~~] (2) Any moneys received by the department in the form of a grant, gift, endowment, or donation for the development, planning, or construction of new school facilities or major renovations of school facilities; and

[~~(4)~~] (3) All other moneys received by the authority and not deposited into a trust fund or trust account, including unrestricted grants, gifts, and donations; proceeds from sales of property; rents and other receipts from leases, rights of entry, and the like; and interest, refunds, and other receipts and payments.

(b) The authority shall establish and appropriately name subaccounts within the school facilities special fund to accept deposits of revenues [~~from school impact fees that are required to be expended within a specific school impact district pursuant to section 302A-1608(a) or~~] restricted for a specified purpose pursuant to part V, subpart B of this chapter."

SECTION 3. Chapter 302A, part VI, subpart B, Hawaii Revised Statutes, is repealed.

SECTION 4. Section 46-142.5, Hawaii Revised Statutes, is repealed.

["~~[§46-142.5 School impact districts; new building permit requirements.]~~ No new residential development in a designated school impact district under chapter 302A shall be issued a residential building permit or condominium property regime building permit until the department of education provides written confirmation that the permit applicant has fulfilled its school impact fee requirements. This section shall only apply to new dwelling units."]

SECTION 5. The school impact fees subaccounts within the school facilities special fund under section 302A-1706, Hawaii Revised Statutes, are abolished and any unencumbered balance remaining shall lapse to the school facilities special fund; provided that the funds shall be:

(1) Used within the school impact district for which it was collected; or

(2) Refunded to the developer if collected as a fee in lieu or a construction cost component impact fee after twenty years of the date of collection.

SECTION 6. The following fair share contribution accounts within the donations – facilities trust (EDN 400), are abolished and any unencumbered balance remaining shall lapse to the school facilities special fund under section 302A-1706, Hawaii Revised Statutes; provided that the lapsed contributions shall only be used within the same complex in which the contributions were originally collected:

(1) Pearl City complex (account number: 10800);

(2) Aiea complex (account number: 10801);

(3) Kaimuki complex (account number: 10802);

(4) Kaiser complex (account number: 10803);

(5) Kapolei complex (account number: 10804);

(6) Maili Kai – Maili elementary trust (account number: 10805);

(7) Maili Kai – Waianae trust (account number: 10806);

(8) Baldwin complex (account number: 10807);

(9) Lahainaluna complex (account number: 10808);

(10) Maui high school complex (account number: 10809); and

(11) Kealakehe complex (account number: 10810).

SECTION 7. Act 268, Session Laws of Hawaii 2025, is amended by amending section 14 to read as follows:

"SECTION 14. This Act shall take effect upon its approval, and shall apply to new residential developments permitted or approved on or before June 30, 2029[; provided that this Act shall be repealed on July 1, 2029, and sections 302A-1601, 302A-1602, 302A-1603, 302A-1606, 302A‑1607, 302A-1608, 302A-1609, 302A-1611, and 302A-1612, Hawaii Revised Statutes, shall be reenacted in the form in which they read prior to the effective date of this Act]."

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	1713
THIRTY-THIRD LEGISLATURE, 2026		H.D. 1
STATE OF HAWAII