HOUSE OF REPRESENTATIVES	H.B. NO.	2123
THIRTY-FIRST LEGISLATURE, 2022		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO OPTIONS FOR STUDENTS IN DEPARTMENT OF EDUCATION SCHOOLS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The purpose of this Act is to provide clarity and consistency with regard to commercial enterprise activities in schools by broadening the scope of profit-making operations that students may engage in at schools to include commercial enterprises, while ensuring that engagement in commercial enterprises shall be related to the primary educational purposes of the school, career pathway, academy, or program. This Act will allow students to receive school credit, compensation, or both, when engaging in profit-making operations.

SECTION 2. Section 302A-420, Hawaii Revised Statutes, is amended to read as follows:

"§302A-420 Profits [to pupils.] and school credit for students. All net profits arising from agricultural [and], industrial, or commercial enterprise pursuits [under sections 302A-420 to 302A-431] at any school, under the rules of the department:

(1) Shall be used by the school to support agricultural, industrial, and commercial enterprise pursuit programs and for the purchase of equipment and [material,] materials, not otherwise provided for in the school budget, that will be of general benefit to the [pupils;] students; or

(2) May be distributed among the [pupils] students actually engaged in the pursuits[.]; provided that school credit may also be granted to students engaged in the permitted operations;

provided that the commercial enterprise does not affect the tax exempt status of general obligation bonds. The department shall provide for the keeping of simple books of account, showing the source and distribution of the money resulting from the operations carried on pursuant to this section, and for the auditing of these books of account at least quarterly."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2050.

Report Title:

Department of Education; Profit and School Credit for Students; School Commercial Enterprises

Description:

Broadens the scope of profit-making operations students may engage in at schools to include commercial enterprises; provided that engagement in commercial enterprises shall be related to the primary educational purposes of the school, career pathway, academy, or program. Allows students to receive school credit, compensation, or both, when they engage in profit-making operations. Effective 7/1/2050. (HD1)

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