Accounting and expenditure requirements
HRS §302A-1608
in effect302A-1608. Accounting and expenditure requirements
(a) Each designated school impact district shall be a separate benefit district. Fees collected within each school impact district shall be spent only within the same school impact district for the purposes collected.
(b) Land dedicated by the developer shall be
used only as a site for the construction of one or more new schools or for the
expansion of existing school facilities. If the land is never used for the
school facility, it shall be returned to the developer, or the developer's
successor in interest. Once used, the land may be sold, with the proceeds used
to acquire land for school facilities in the same school impact district.
(c) If the land is not used for a school
facility within twenty years of its dedication, it shall be returned to the
developer, or the developer's successor in interest.
(d) Once used for school facilities, all or
part of the land may be later sold. Proceeds from the sale shall be used to
acquire land for school facilities in the same school impact district.
(e) Fee in lieu funds may be used for school
site land acquisition and related expenses, including surveying, appraisals,
and legal fees. With the exception of urban Honolulu, fee in lieu funds shall
not be used for the maintenance or operation of existing schools in the
district; construction costs, including architectural, permitting, or financing
costs; or for administrative expenses.
(f) Notwithstanding any other law to the
contrary, fee in lieu funds from projects within a county-designated transit
oriented development zone may also be used to purchase completed construction,
construct new school facilities in new or existing school sites, improve or
renovate existing structures for school use, or lease land or facilities for
school use within a county-designated transit oriented development zone.
[(g)] Notwithstanding subsection (e), in urban
Honolulu, fee in lieu funds may be used to purchase completed construction,
construct new school facilities, improve or renovate existing structures for
school use, or lease land or facilities for school use.
(h) Construction cost component impact fees
shall be used only:
(1) For the costs of new school facilities that
expand the student capacity of existing schools or adds student capacity in new
schools; or
(2) To improve or renovate existing structures for
school use.
Construction cost component impact fees shall not be
used to replace an existing school located within the same school impact
district, either on the same site or on a different site.
[(i)] Eligible construction costs include
planning, engineering, architectural, permitting, financing, and administrative
expenses, and any other capital equipment expenses pertaining to educational
facilities.
(j) Construction cost component impact fees
shall not be expended for the maintenance or operation of existing schools in
the district.
[(k)] If a closure, demolition, or conversion
of an existing permanent department facility within a school impact district
that has the effect of reducing student capacity occurs, an amount of new
student capacity in permanent buildings equivalent to the lost capacity shall
not be funded with school impact fees.
(l) Fees in lieu, proceeds from the sale of
all or part of an existing school site that has been dedicated by a developer
pursuant to the requirements of this subpart, and construction cost component
impact fees shall be expended or encumbered within twenty years of the date of
collection. Fees shall be considered spent or encumbered on a first-in,
first-out basis.
[(m)] As used in this section, "urban
Honolulu" means the Kalihi to Ala Moana school impact district.
[L 2007, c
245, pt of §2; am L 2010, c 188, §11; am L 2016, c 130, §4 and c 237, §3; am L
2021, c 197, §3]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol05_Ch0261-0319/HRS0302A/HRS_0302A-1608.htmFetched: 11/10/2026