SB2543

PART I

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

STATE CONSTRUCTION MANAGER

§ -1 Definitions. As used in this chapter, unless the context clearly requires otherwise:

"State agency" means any office, department, board, commission, bureau, division, public corporation, agency, or instrumentality of the State.

"State construction project" means any undertaking of work or improvement of state lands or any interest therein, developed, acquired, constructed, reconstructed, rehabilitated, improved, altered, or repaired by a state agency.

"State lands" means all lands owned by the State through any state agency.

§ -2 State construction manager; office established; appointment, tenure, removal; requirements; salary. (a) There is established within the department of accounting and general services the office of the state construction manager, which shall be headed by a full-time state construction manager to organize, manage, and oversee the design review of all state construction projects and issue design approvals before any state construction project commences. The state construction manager shall be appointed by the governor pursuant to section 26-34. The state construction manager shall report to the comptroller.

(b) To be eligible to serve in the position of state construction manager, an individual shall have held a valid license under chapter 464 for at least five years immediately preceding the date of appointment.

(c) The state construction manager shall not engage in the private practice of professional construction management or serve in a managing capacity in any private business or enterprise.

(d) The salary of the state construction manager shall be established by the governor.

§ -3 Duties and responsibilities. (a) The state construction manager shall have general charge and oversight of the design review of all state construction projects. The state construction manager shall:

(1) Review all plans, drawings, specifications, and any other documents necessary for state construction projects;

(2) Ensure conformance with all building codes or county, national, or international prescriptive construction standards, including construction, electrical, energy-conservation, plumbing, and sidewalk standards, as applicable;

(3) Provide exclusive centralized design review services for state construction projects and issue design approvals; and

(4) Assign an inspector to each state construction project for the purpose of observing the construction work.

§ -4 Assistance and staff. The state construction manager may employ or contract with qualified architects and engineers as necessary, without regard to chapter 76, to carry out the duties and responsibilities established by this chapter.

§ -5 Costs for services; fees. (a) The cost of all design review services performed by the office of the state construction manager for a state agency shall be determined by the state construction manager.

(b) The state construction manager may set, charge, and collect reasonable fees, without regard to chapter 91, in an amount sufficient to defray the cost of processing design approvals.

(c) All fees collected pursuant to this section shall be deposited with the state construction manager to the credit of the design review special fund established by section -6.

-6 Design review special fund. (a) There is established in the state treasury the design review special fund to be administered and expended by the state construction manager for the purposes of this chapter.

(b) The following shall be deposited into the design review special fund:

(1) Fees collected for services provided to state agencies pursuant to this chapter and rules adopted pursuant to this chapter;

(2) Appropriations made by the legislature to the special fund; and

(3) Interest earned or accrued on moneys in the special fund.

(c) Moneys remaining on balance in the design review special fund at the close of each fiscal year shall remain in the special fund and shall not lapse to the credit of the state general fund.

§ -7 Administrative rules. No later than December 31, 2027, the comptroller, in consultation with the state construction manager, shall adopt rules pursuant to chapter 91 to implement this chapter.

§ -8 Annual report. (a) The state construction manager shall prepare and submit an annual report to the governor and legislature no later than twenty days prior to the convening of each regular session.

(b) The report shall include:

(1) A summary describing the activities of the office of the state construction manager, including but not limited to a list and description of each state construction project that received a design approval during the preceding fiscal year; and

(2) A financial report on the status of the design review special fund established by section -6."

SECTION 2. Section 26-6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The department shall:

(1) Preaudit and conduct after-the-fact audits of the financial accounts of all state departments to determine the legality of expenditures and the accuracy of accounts;

(2) Report to the governor and to each regular session of the legislature as to the finances of each department of the State;

(3) Administer the state risk management program;

(4) Establish and manage motor pools;

(5) Manage the preservation and disposal of all records of the State;

(6) Undertake the program of centralized engineering and office leasing services, including operation and maintenance and lease buyback processing pursuant to subsection (d) of public buildings, for departments of the State;

(7) Undertake the functions of the state surveyor;

(8) Establish accounting and internal control systems;

(9) Have the discretion to employ persons within the comptroller's office who shall be exempt from chapters 76 and 89 in support of communications, change management, and business process improvement programs as part of the State's information technology modernization efforts; provided that the persons shall be members of the state employees' retirement system and shall be eligible to receive the benefits of any state employee benefit program generally applicable to officers and employees of the State;

(10) Provide centralized computer information management and processing services through the chief information officer;

(11) Establish a program to provide a means for public access to public information and develop an information network for state government;

(12) Assume administrative responsibility for the office of information practices; [~~and~~]

(13) Approve state fleet acquisitions; provided that:

(A) Beginning January 1, 2022, all new light-duty motor vehicles that are passenger cars purchased for the State's fleet shall be zero-emission vehicles;

(B) Beginning as soon as practicable but no later than January 1, 2030, all new light-duty motor vehicles that are multipurpose passenger vehicles and trucks for the State's fleet shall be zero-emission vehicles; and

(C) The comptroller may authorize an exemption for new fleet vehicle purchases if zero-emission vehicles are demonstrated to be cost-prohibitive on a lifecycle basis or unsuitable for the vehicles' planned purpose, or if funds are unavailable[.]; and

(14) Provide exclusive centralized design review services for state construction projects and issue design approvals through the state construction manager.

For the purposes of this subsection:

"Light-duty motor vehicle" has the same meaning as defined in title 10 Code of Federal Regulations part 490.

"Multipurpose passenger vehicle" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.

"Passenger car" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.

"Truck" has the same meaning as defined in title 49 Code of Federal Regulations section 571.3.

"Zero-emission vehicle" has the same meaning as specified in title 40 Code of Federal Regulations section 88.1."

PART II

SECTION 3. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§46- County building permit, inspection, and certificate of occupancy requirements; exemption; state construction projects. (a) Notwithstanding any other law to the contrary, state construction projects shall be exempt from county building permit, inspection, and certificate of occupancy requirements if the projects comply with applicable building codes or county, national, or international prescriptive construction standards, including construction, electrical, energy-conservation, plumbing, and sidewalk standards, as applicable, as determined by the state construction manager pursuant to chapter .

(b) Nothing in this section shall relieve any state construction project from the laws, ordinances, rules, and regulations of the State or a county, or any departments, boards, or other agencies thereof, with respect to:

(1) The construction, operation, and maintenance of the state construction project;

(2) Compliance with master plans or zoning laws or regulations; and

(3) Compliance with building and health codes and other laws, ordinances, rules, and regulations of a similar nature applicable to the state construction project.

"State agency" means any office, department, board, commission, bureau, division, public corporation, agency, or instrumentality of the State.

"State construction project" means any undertaking of work or improvement of state lands, or any interest therein, developed, acquired, constructed, reconstructed, rehabilitated, improved, altered, or repaired by a state agency.

"State lands" means all land owned by the State through any state agency."

PART III

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 2026-2027 to be deposited into the design review special fund established by section -6, Hawaii Revised Statutes.

SECTION 5. There is appropriated out of the design review special fund established by section -6, Hawaii Revised Statutes, the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 to establish:

(1) One full-time equivalent (1.0 FTE) state construction manager position; and

(2) full-time equivalent ( FTE) positions within the office of the state construction manager.

The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act.

PART IV

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2026.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2543
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII