HOUSE OF REPRESENTATIVES H.B. NO. 329 THIRTY-THIRD LEGISLATURE, 2025 H.D. 1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO THE SCHOOL FACILITIES AUTHORITY. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: HOUSE OF REPRESENTATIVES H.B. NO. 329 THIRTY-THIRD LEGISLATURE, 2025 H.D. 1 STATE OF HAWAII HOUSE OF REPRESENTATIVES H.B. NO. 329 THIRTY-THIRD LEGISLATURE, 2025 H.D. 1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO THE SCHOOL FACILITIES AUTHORITY. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: SECTION 1. The legislature finds that the school facilities authority is entrusted with responsibilities relating to the development, planning, and construction of public school projects. The legislature further finds that the school facilities authority could carry out these responsibilities with greater efficiency if certain changes were made to statutes governing the authority. Accordingly, the purpose of this Act is to: (1) Clarify that the school facilities authority is responsible for certain development, planning, and construction projects for prekindergarten, preschool, and child care facilities, as well as workforce housing; (2) Authorize the authority to develop workforce housing for teachers on land not owned by the department of education; (3) Allow the authority to use the department of education for certain recruitment and hiring responsibilities; and (4) Allow the authority to partner with public and private development agencies to develop prekindergarten facilities. SECTION 2. Chapter 302L, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§302L- Early learning facilities; workforce housing; school facilities authority. Except as otherwise limited by chapter 302A, the school facilities authority shall be responsible for all development, planning, and construction related to: (1) New or renovated prekindergarten, preschool, and child care facilities; and (2) Workforce housing for educators and other education workers in schools serving prekindergarten; provided that nothing shall prohibit the school facilities authority from developing workforce housing on land not owned by the department of education; provided further that the school facilities authority shall meet all other requirements for developing facilities on state or public lands as provided by law." SECTION 3. Section 302A-1703, Hawaii Revised Statutes, is amended as follows: 1. By amending subsection (a) to read: "(a) Except as otherwise limited by this chapter, the authority shall be responsible for all public school development, planning, and construction related to [capital improvement]: (1) Workforce housing for educators and other education workers in schools serving elementary and secondary grades; provided that nothing shall prohibit the school facilities authority from developing workforce housing on land not owned by the department; provided further that the school facilities authority shall meet all other requirements for developing facilities on state or public lands as provided by law; and (2) Any other projects assigned by the legislature, governor, or board of education." 2. By amending subsection (c) to read: "(c) Except as otherwise limited by this chapter, the authority may also: (1) Have a seal and alter the same at its pleasure; (2) Subject to subsection (b), make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this subpart; (3) Make and alter bylaws for its organization and internal management; (4) Adopt rules pursuant to chapter 91 with respect to its projects, operations, properties, and facilities, including qualifications for persons and entities wishing to enter into a public-private partnership with the authority, as permitted in paragraph (7); (5) Acquire or contract to acquire by grant or purchase real, personal, or mixed property or any interest therein; to clear, improve, and rehabilitate and to sell, assign, exchange, transfer, convey, lease, subdivide, or otherwise dispose of or encumber the same; (6) Acquire property by condemnation pursuant to chapter 101; (7) Enter into partnerships with qualified persons, including public-private partnerships, as defined in the authority's rules, to acquire, construct, reconstruct, rehabilitate, improve, alter, or provide for the construction, reconstruction, improvement, or alteration of any project, including prekindergarten facilities; and sell, assign, transfer, convey, exchange, lease, or otherwise dispose of or encumber any project; and in the case of the sale of any project, accept a purchase money mortgage in connection therewith; (8) Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on terms and conditions as it deems advisable; (9) Prepare or cause to be prepared plans, specifications, designs, and estimates of costs for the construction, reconstruction, rehabilitation, improvement, or alteration of any project, and from time to time to modify the plans, specifications, designs, or estimates; (10) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable; (11) Apply for and accept gifts or grants in any form from any public agency or from any other source, including gifts or grants from private individuals and private entities; (12) Borrow money or procure loan guarantees from the federal government for or in aid of any project the authority is authorized to undertake pursuant to this chapter. Additionally, in connection with borrowing or procurement of loan guarantees, the authority: (A) Shall comply with conditions required by the federal government pursuant to applicable regulation or required in any contract for federal assistance; (B) Shall repay indebtedness incurred pursuant to this section, including any interest thereon; (C) May execute loan and security agreements and related contracts with the federal government; (D) May issue bonds pledging revenues, assessments, or other taxes as security for indebtedness incurred pursuant to this section; and (E) May enter into financing agreements as that term is defined in section 37D-1; (13) Appoint or retain by contract one or more attorneys who are independent of the attorney general to provide legal services solely in cases of negotiations in which the attorney general lacks the sufficient expertise; provided that the independent attorney shall consult and work in conjunction with the designated deputy attorney general; (14) Use the department of human resources development or the department of education to recruit, hire, and retain exempt employees, architects, engineers, existing civil service positions, and other technical positions for the development, planning, and construction related to capital improvement projects; (15) Partner with public and private development agencies to develop: (A) Housing on or off campus; [and] (B) Classrooms; and (C) Prekindergarten facilities; (16) Request any state or county agency to render services to the authority; (17) Transfer the property to another public agency or contract to manage the leasing and property management of housing projects; and (18) Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this subpart." SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect on July 1, 3000. SECTION 1. The legislature finds that the school facilities authority is entrusted with responsibilities relating to the development, planning, and construction of public school projects. The legislature further finds that the school facilities authority could carry out these responsibilities with greater efficiency if certain changes were made to statutes governing the authority. Accordingly, the purpose of this Act is to: (1) Clarify that the school facilities authority is responsible for certain development, planning, and construction projects for prekindergarten, preschool, and child care facilities, as well as workforce housing; (2) Authorize the authority to develop workforce housing for teachers on land not owned by the department of education; (3) Allow the authority to use the department of education for certain recruitment and hiring responsibilities; and (4) Allow the authority to partner with public and private development agencies to develop prekindergarten facilities. SECTION 2. Chapter 302L, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§302L- Early learning facilities; workforce housing; school facilities authority. Except as otherwise limited by chapter 302A, the school facilities authority shall be responsible for all development, planning, and construction related to: (1) New or renovated prekindergarten, preschool, and child care facilities; and (2) Workforce housing for educators and other education workers in schools serving prekindergarten; provided that nothing shall prohibit the school facilities authority from developing workforce housing on land not owned by the department of education; provided further that the school facilities authority shall meet all other requirements for developing facilities on state or public lands as provided by law." SECTION 3. Section 302A-1703, Hawaii Revised Statutes, is amended as follows: 1. By amending subsection (a) to read: "(a) Except as otherwise limited by this chapter, the authority shall be responsible for all public school development, planning, and construction related to [capital improvement]: (1) Workforce housing for educators and other education workers in schools serving elementary and secondary grades; provided that nothing shall prohibit the school facilities authority from developing workforce housing on land not owned by the department; provided further that the school facilities authority shall meet all other requirements for developing facilities on state or public lands as provided by law; and (2) Any other projects assigned by the legislature, governor, or board of education." 2. By amending subsection (c) to read: "(c) Except as otherwise limited by this chapter, the authority may also: (1) Have a seal and alter the same at its pleasure; (2) Subject to subsection (b), make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this subpart; (3) Make and alter bylaws for its organization and internal management; (4) Adopt rules pursuant to chapter 91 with respect to its projects, operations, properties, and facilities, including qualifications for persons and entities wishing to enter into a public-private partnership with the authority, as permitted in paragraph (7); (5) Acquire or contract to acquire by grant or purchase real, personal, or mixed property or any interest therein; to clear, improve, and rehabilitate and to sell, assign, exchange, transfer, convey, lease, subdivide, or otherwise dispose of or encumber the same; (6) Acquire property by condemnation pursuant to chapter 101; (7) Enter into partnerships with qualified persons, including public-private partnerships, as defined in the authority's rules, to acquire, construct, reconstruct, rehabilitate, improve, alter, or provide for the construction, reconstruction, improvement, or alteration of any project, including prekindergarten facilities; and sell, assign, transfer, convey, exchange, lease, or otherwise dispose of or encumber any project; and in the case of the sale of any project, accept a purchase money mortgage in connection therewith; (8) Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on terms and conditions as it deems advisable; (9) Prepare or cause to be prepared plans, specifications, designs, and estimates of costs for the construction, reconstruction, rehabilitation, improvement, or alteration of any project, and from time to time to modify the plans, specifications, designs, or estimates; (10) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable; (11) Apply for and accept gifts or grants in any form from any public agency or from any other source, including gifts or grants from private individuals and private entities; (12) Borrow money or procure loan guarantees from the federal government for or in aid of any project the authority is authorized to undertake pursuant to this chapter. Additionally, in connection with borrowing or procurement of loan guarantees, the authority: (A) Shall comply with conditions required by the federal government pursuant to applicable regulation or required in any contract for federal assistance; (B) Shall repay indebtedness incurred pursuant to this section, including any interest thereon; (C) May execute loan and security agreements and related contracts with the federal government; (D) May issue bonds pledging revenues, assessments, or other taxes as security for indebtedness incurred pursuant to this section; and (E) May enter into financing agreements as that term is defined in section 37D-1; (13) Appoint or retain by contract one or more attorneys who are independent of the attorney general to provide legal services solely in cases of negotiations in which the attorney general lacks the sufficient expertise; provided that the independent attorney shall consult and work in conjunction with the designated deputy attorney general; (14) Use the department of human resources development or the department of education to recruit, hire, and retain exempt employees, architects, engineers, existing civil service positions, and other technical positions for the development, planning, and construction related to capital improvement projects; (15) Partner with public and private development agencies to develop: (A) Housing on or off campus; [and] (B) Classrooms; and (C) Prekindergarten facilities; (16) Request any state or county agency to render services to the authority; (17) Transfer the property to another public agency or contract to manage the leasing and property management of housing projects; and (18) Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this subpart." SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect on July 1, 3000. Report Title: School Facilities Authority; School Facilities Authority Board; Public Schools; Early Learning Facilities; Workforce Housing; Recruitment Description: Clarifies that the School Facilities Authority is responsible for certain development, planning, and construction projects for prekindergarten, preschool, and child care facilities, as well as workforce housing. Authorizes the School Facilities Authority to develop workforce housing for teachers on land not owned by the Department of Education. Allows the School Facilities Authority to use the Department of Education for certain recruitment and hiring responsibilities. Allows the School Facilities Authority to partner with public and private development agencies to develop prekindergarten facilities. Effective 7/1/3000. (HD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. Report Title: School Facilities Authority; School Facilities Authority Board; Public Schools; Early Learning Facilities; Workforce Housing; Recruitment Description: Clarifies that the School Facilities Authority is responsible for certain development, planning, and construction projects for prekindergarten, preschool, and child care facilities, as well as workforce housing. Authorizes the School Facilities Authority to develop workforce housing for teachers on land not owned by the Department of Education. Allows the School Facilities Authority to use the Department of Education for certain recruitment and hiring responsibilities. Allows the School Facilities Authority to partner with public and private development agencies to develop prekindergarten facilities. Effective 7/1/3000. (HD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.