STAND. COM. REP. NO. 3233

Honolulu, Hawaii

RE: H.B. No. 2397

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Housing and Education, to which was referred H.B. No. 2397, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO SCHOOL FACILITIES,"

beg leave to report as follows:

The purpose and intent of this measure is to transfer school impact fees from the Kalihi-Ala Moana school impact district to the School Impact Fees subaccount of the School Facilities Special Fund for the acquisition and renovation of one or more buildings in the downtown Honolulu area to develop and expand pre-kindergarten and charter school capacity.

Your Committees received testimony in support of this measure from the Hawaiʻi School Facilities Authority and State Public Charter School Commission.

Your Committees received testimony in opposition to this measure from one individual.

Your Committees received comments on this measure from the Department of the Attorney General.

Your Committees find that the State continues to experience high demand for early learning facilities and permanent space for public charter schools. Expanding pre-kindergarten and charter school capacity is an important component in addressing statewide educational needs and increasing access to educational opportunities. Your Committees also find that the downtown Honolulu area presents unique challenges related to site availability, cost, and development constraints, making the adaptive reuse of existing buildings a practical and efficient potential option. By transferring funds for the acquisition and renovation of buildings in the downtown Honolulu area, this measure will help expand access to critical educational services.

Your Committees have amended this measure by:

(1) Clarifying that the purpose of the appropriated funds is to acquire one or more buildings, or acquire land and construct a new building in the 96813 zip code;

(2) Inserting language to require that the appropriated funds shall be used to serve students residing in the Kalihi-Ala Moana school impact district, except under certain conditions;

(3) Amending section 1 to reflect its amended purpose; and

(4) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Housing and Education that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2397, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2397, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Housing and Education,

________________________________ DONNA MERCADO KIM, Chair

________________________________ STANLEY CHANG, Chair