HI SB854

Establishes a pilot program allowing the Department of Education to lease public school land for up to 55 years to benefit public educational purposes, with terms determined at the department's discretion.

Permits the department to identify and select up to five public school land sites as candidates for the pilot program, requiring public meetings in affected communities and county consultation when applicable.

Authorizes lessees to retain revenue generated from facilities while requiring them to pay property taxes on improvements, maintain facilities for educational purposes, and revert facilities to the department upon lease expiration.

Allows the department to enter into leaseback agreements with third-party lessees, enabling the department to lease back the property for a contractual period after which the department owns any improvements.

Defines public educational purposes to include revenue generation from underutilized facility redevelopment, new construction or renovation of department facilities into twenty-first century schools, or a combination of both; requires leases be fully executed by July 1, 2018.