SB2731 Proposed SD1 LRB 16-1343

PART I

SECTION 1. The legislature finds that Act 245, Session Laws of Hawaii 2007, established the law regarding school impact fees. Act 245 implemented a new method for financing, in part, new or expanding existing department of education educational facilities in partnership with developers of new residential developments. The legislature further finds, however, that land use planning, development patterns, and preferences have changed since 2007. Kakaako, for example, has many existing and proposed high-density residential projects that will require at least one new school in that area. Further, a rail transit system may require attention if resultant population shifts require schools to be located near rail stations. The legislature further finds that while Act 188, Session Laws of Hawaii 2010, made helpful clarifying amendments to the school impact fees law, more substantive amendments to the law may be necessary.

The purpose of this part is to establish a school impact fee review task force to review the law regarding school impact fees, as codified in chapter 302A, part VI, subpart B of the Hawaii Revised Statutes.

SECTION 2. (a) There is established a school impact fee review task force within the department of education for administrative purposes.

(b) The school impact fee review task force shall consist of ten members as follows:

(1) The superintendent of education, or the superintendent's designee;

(2) The comptroller, or the comptroller's designee;

(3) The chairperson of the board of land and natural resources, or the chairperson's designee;

(4) The director of the office of planning, or the director's designee;

(5) The executive director of the Hawaii community development authority, or the executive director's designee;

(6) Two members appointed by the board of education who have experience in the development of real property for residential purposes; provided that the members shall neither be developers of real property located within the State, nor individuals with direct financial interests in developers of real property located within the State;

(7) The mayor of the city and county of Honolulu, or the mayor’s designee; provided that the designee is an officer of the city and county of Honolulu; and

(8) The mayor of the county of Maui, or the mayor’s designee; provided that the designee is an officer of the county of Maui; and

(9) The mayor of the county of Hawaii, or the mayor’s designee; provided that the designee is an officer of the county of Hawaii; and

(10) The mayor of the county of Kauai, or the mayor’s designee; provided that the designee is an officer of the county of Kauai.

The task force shall select a chairperson from among its membership.

(1) Review the school impact fees law, as codified in chapter 302A, part VI, subpart B of the Hawaii Revised Statutes; and

(2) Recommend any amendments deemed necessary to update the law to address current and future needs for the development of new schools to accommodate projected population growth.

(d) The task force shall consider the following issues as well as any other issues deemed necessary by the task force:

(1) The adequacy of the current school impact fees law to generate funding for schools in high-density urban areas and lower-density suburban areas;

(2) The projected costs of developing new schools in areas of different permitted densities;

(3) Appropriate impact fees for the development of vertical schools on smaller parcels of land in areas that permit high-density residential structures;

(4) Standards for the minimum floor area for vertical schools;

(5) The effects of county land use planning and zoning on development patterns and population shifts;

(6) Strategies to develop more schools where they are needed, as a result of projected development patterns and population shifts; and

(7) The effect of any rail transit system on the projected need for schools near rail stations.

(e) For the purposes of this section:

"Developer" has the same meaning as in section 302A-1602 of the Hawaii Revised Statutes.

"Vertical school" means a school in which all or most classrooms are located within a single multi-story structure.

SECTION 3. (a) Members of the task force shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(b) The department of education shall provide administrative support to the task force and assist the task force in the preparation of the reports and proposed legislation required pursuant to section 4.

SECTION 4. (a) The school impact fee review task force shall submit interim reports on its actions to the legislature no later than twenty days before the convening of each of the regular sessions of 2017 and 2018.

(b) The task force shall submit a final report of its findings and recommendations, including any proposed legislation, to the legislature and the governor no later than twenty days before the convening of the regular session of 2019.

SECTION 5. (a) The school impact fee review task force shall cease to exist on December 31, 2018.

(b) After December 31, 2018, members of the task force may represent themselves as such before the legislature when testifying about or discussing the task force's findings, recommendations, and proposed legislation.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $100,000 or so much thereof as may be necessary for fiscal year 2016-2017 for the administrative and operating expenses of the school impact fee review task force.

The sum appropriated shall be expended by the department of education for the purposes of this part.

PART II

SECTION 7. The legislature finds that new affordable housing generates additional students within a school district in the same way that all other new housing development drives up school enrollment. School impact fees are a direct link between new housing units and the new or expanded school facilities required to address the enrollment growth caused by the new units.

The purpose of this part is to clarify that housing projects that, pursuant to chapter 201H, Hawaii Revised Statutes, are exempt from certain laws relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction of dwelling units thereon, are not exempt from the school impact fee requirement.

SECTION 8. Section 201H-38, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The corporation may develop on behalf of the State or with an eligible developer, or may assist under a government assistance program in the development of, housing projects that shall be exempt from all statutes, ordinances, charter provisions, and rules of any government agency relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction of dwelling units thereon; provided that:

(1) The corporation finds the housing project is consistent with the purpose and intent of this chapter, and meets minimum requirements of health and safety;

(2) The development of the proposed housing project does not contravene any safety standards, tariffs, or rates and fees approved by the public utilities commission for public utilities or of the various boards of water supply authorized under chapter 54;

(3) The legislative body of the county in which the housing project is to be situated shall have approved the project with or without modifications:

(A) The legislative body shall approve, approve with modification, or disapprove the project by resolution within forty-five days after the corporation has submitted the preliminary plans and specifications for the project to the legislative body. If on the forty-sixth day a project is not disapproved, it shall be deemed approved by the legislative body;

(B) No action shall be prosecuted or maintained against any county, its officials, or employees on account of actions taken by them in reviewing, approving, modifying, or disapproving the plans and specifications; and

(C) The final plans and specifications for the project shall be deemed approved by the legislative body if the final plans and specifications do not substantially deviate from the preliminary plans and specifications. The final plans and specifications for the project shall constitute the zoning, building, construction, and subdivision standards for that project. For purposes of sections 501-85 and 502-17, the executive director of the corporation or the responsible county official may certify maps and plans of lands connected with the project as having complied with applicable laws and ordinances relating to consolidation and subdivision of lands, and the maps and plans shall be accepted for registration or recordation by the land court and registrar; [~~and~~]

(4) The land use commission shall approve, approve with modification, or disapprove a boundary change within forty-five days after the corporation has submitted a petition to the commission as provided in section 205-4. If, on the forty-sixth day, the petition is not disapproved, it shall be deemed approved by the commission[.]; and

(5) The project shall not be exempt from the school impact fee requirement under section 46-142.5."

PART III

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect upon approval; provided that Part I shall take effect on July 1, 2016.

THE SENATE	S.B. NO.	2731
TWENTY-EIGHTH LEGISLATURE, 2016		S.D. 1
STATE OF HAWAII		Proposed