THE SENATE

S.B. NO.

377

THIRTIETH LEGISLATURE, 2019

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to the university of hawaii.

 

 

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

 


SECTION 1. The legislature finds that the deferred maintenance backlog at the University of Hawaii has expanded to more than $800,000,000, and that amount will continue to grow if it is not addressed in an aggressive manner. Rather than increasing student tuition and fees to finance repair, maintenance, and new construction projects that are not funded by the legislature, alternative methods of revenue generation must be explored.

The legislature further finds that the Honolulu rail transit project provides a unique opportunity to generate additional revenue for the University of Hawaii. The university owns a considerable amount of property along the Honolulu rail transit project route and the proposed rail extension to Manoa.

The purpose of this Act is to establish a pilot project for the lease of university lands located near public transit to generate funds to improve current university facilities and infrastructure, meet the challenges of the twenty-first century through new construction, and improve the overall quality of education at the University of Hawaii.

SECTION 2. Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"304A-    Pilot project for lease of university land. (a) There shall be established within the university a pilot project for the lease of university land, including facilities. The university shall serve as the facilitator of the pilot project.

(b) Notwithstanding section 171-13, or any other law to the contrary, the university may lease university land on terms it deems appropriate; provided that:

(1) The board of regents may select any university land sites that are located:

(A) Within county-designated transit-oriented development zones;

(B) Within a one-half mile radius of public transit stations; or

(C) Within a one-half mile radius of any rail transit extension beyond the rail transit route approved by the Federal Transportation Administration as of January 1, 2017;

provided further that during the identification and selection process, the board of regents shall hold at least one public meeting pursuant to chapter 92 in each affected community, and shall foster university and community participation;

(2) The university shall work with the university's school of architecture to help develop the university land sites;

(3) Title to the university land sites selected by the board of regents for the pilot project that are public lands as defined in section 171-2 shall be transferred through a deed to the university if the university does not already own the land parcels; and

(4) Each lease shall stipulate that the lessee may retain any revenue generated from the facilities; provided that:

(A) The lessee shall be obligated to pay to the county all applicable property tax on the value of any improvements;

(B) Upon the expiration of the lease, the facilities shall revert to the university; and

(C) All revenues and proceeds derived by the State under this section shall be deposited in the University of Hawaii real property and facilities use revolving fund pursuant to section 304A-2274.

(c) Nothing in this section shall preclude the university from consulting with and receiving assistance from any other state department or agency in carrying out the purposes of this section.

(d) The board of regents shall adopt rules pursuant to chapter 91 for development of university lands under the pilot project. Upon final adoption of a development site for the pilot project, the rules shall supersede all transit-oriented development or county plans, ordinances, or zoning development codes.

(e) The University of Hawaii shall submit a report to the legislature no later than twenty days prior to the convening of the regular session of 2020 and each regular session thereafter until completion of the pilot project authorized pursuant to this Act. The report shall provide the following:

(1) A timeline for the pilot project pursuant to this Act, including but not limited to:

(A) A timeline for the redevelopment of each selected site;

(B) Estimated start and completion dates for each selected site; and

(C) Estimates for the time required to obtain any necessary county or state approvals required to complete the redevelopment of each site;

(2) A summary of the university's activities, results, and recommendations to optimize the use of university lands as a means to build or renovate twenty-first century universities and campus-centered communities;

(3) A summary of all university and community engagement efforts undertaken or anticipated to be undertaken by the university in carrying out the pilot project pursuant to this Act;

(4) A summary of the university's current and projected budgeted expenses for carrying out the pilot project pursuant to this Act, including the identification of any contracts with third parties and the creation of temporary positions within the university;

(5) A summary of any capacity and funding issues or challenges that the university has encountered in carrying out the pilot project pursuant to this Act; and

(6) Any proposed legislation.

(f) For the purposes of this section, "university land" means land owned, leased, or otherwise used by the university."

SECTION 3. Section 304A-2274, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established the University of Hawaii real property and facilities use revolving fund into which shall be deposited all revenues collected by the university for the use of university real property and facilities, except as otherwise provided by law. The board of regents may establish prices, fees, and charges, including those for the sale, lease, or use of university real property and facilities, which include land, buildings, grounds, furnishings, and equipment; provided that the university shall comply with all statutory and common law requirements in the disposition of ceded lands. The board of regents shall be exempt from the public notice and public hearing requirements of chapter 91 in establishing and amending the fees and charges. The university may establish separate accounts within the revolving fund for major program activities. Funds deposited into the revolving fund accounts shall be expended to pay the costs of [operating]:

(1) Operating university facilities, including repair and maintenance, administrative expenses, salaries, wages, and benefits of employees, contractor services, supplies, security, furnishings, equipment, janitorial services, insurance, utilities, and other operational expenses[.]; and

(2) New construction and upgrade of university facilities.

Revenues not expended as provided in this section may be transferred to other university funds to be invested or expended for the administrative or overhead costs of the university. All expenditures from this revolving fund shall be subject to legislative appropriation."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 for the pilot project established pursuant to section 2 of this Act.

The sums appropriated shall be expended by the University of Hawaii for the purposes of this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2019.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

UH; Land Lease; University Facilities; Appropriation

 

Description:

Establishes a pilot project to generate revenue through the lease of University of Hawaii land for public purposes. Requires that the parcels of land be located within a county-designated transit-oriented zone, a one-half mile radius of public transit stations, or a one-half mile radius of any rail transit extension beyond the rail transit route approved as of January 1, 2017. Authorizes moneys in the University of Hawaii real property and facilities use revolving fund to be used for new construction and upgrade of university facilities. Requires the university to report to the legislature. Appropriates funds.

 

 

 

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