SB2930 CD1

SECTION 1. The legislature finds that, due to insurance claims for losses to state facilities and other state property damaged or destroyed in Lahaina by the 2023 Maui wildfires, the State has received property and liability proceeds that are intended to be used to repair, rebuild, and restore impacted state facilities and infrastructure. The legislature further finds that the expenditure of funds from the state risk management revolving fund is subject to legislative appropriation and expenditure limits, and that an increase to the fund's expenditure ceiling is necessary to allow the timely use of these insurance proceeds for the rebuilding of state facilities in Lahaina.

The legislature also finds that rebuilding efforts in Lahaina involve multiple state agencies, the county of Maui, and private entities. Absent coordinated planning between these parties, rebuilding efforts may occur within silos and result in duplicate work and funding, extended timelines, and inefficient use of limited public and private resources. Without a master coordinated project plan, critical state rebuilding projects that could be funded through the state risk management revolving fund may proceed through the traditional capital improvement project process, which may impact funding for other critical projects in the State and reduce the State's ability to fully utilize available insurance proceeds in the state risk management revolving fund for disaster-related losses to state facilities.

The legislature additionally finds that the development of a master coordinated project plan for the rebuilding of Lahaina, in collaboration with the relevant state agencies, the county of Maui, and other appropriate private entities, will enable the State to align projects, map shared infrastructure needs, identify opportunities to leverage shared resources, and conserve and maximize the insurance proceeds in the state risk management revolving fund. The legislature notes that this master coordinated project plan should be a condition precedent to the authorization of an increase to the expenditure ceiling of the state risk management revolving fund for the recovery of Lahaina to ensure that, to the fullest extent practicable, moneys in the fund are leveraged to rebuild all state facilities in Lahaina and the rebuilding is financed.

Accordingly, the purpose of this Act is to:

(1) Increase the expenditure ceiling and appropriate funds out of the state risk management revolving fund to enable the department of accounting and general services, state risk management and insurance administration to expend and distribute property and liability insurance proceeds related to the 2023 Maui wildfires for the rebuilding and restoration of state facilities in Lahaina, including funds specifically for:

(A) The King Kamehameha III elementary school;

(B) Offsite infrastructure surrounding the King Kamehameha III elementary school;

(D) The Lahaina small boat harbor;

(2) Require the department of accounting and general services to submit to the legislature a master coordinated project plan developed in collaboration with certain state agencies and in consultation with the county of Maui and other relevant entities;

(3) Require the department of education to transfer to the school facilities authority exclusive site control over the new King Kamehameha III elementary school property during the period of its construction, and the department of accounting and general services to transfer to the school facilities authority any materials deemed necessary for the construction of the school and provide further support as necessary upon request;

(4) Require the school facilities authority to submit monthly progress reports to the governor and legislature; and

(5) Allow the governor to transfer certain authorities and responsibilities related to the construction of King Kamehameha III elementary school from the school facilities authority to another state agency under certain conditions.

SECTION 2. There is appropriated out of the state risk management revolving fund established by section 41D-4, Hawaii Revised Statutes, the sum of $146,000,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the planning, design, construction, and appurtenances for the King Kamehameha III elementary school; provided that this appropriation is contingent upon at least $48,000,000 being matched by federal funds; provided further that any funds reimbursed shall be returned to the fund from which the original expenditure was made.

The sum appropriated shall be expended by the school facilities authority for the purposes of this Act.

SECTION 3. There is appropriated out of the state risk management revolving fund established by section 41D-4, Hawaii Revised Statutes, the sum of $30,000,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the planning, design, construction, and appurtenances of offsite infrastructure improvements surrounding the King Kamehameha III elementary school.

The sum appropriated shall be expended by the school facilities authority for the purposes of this Act.

SECTION 4. There is appropriated out of the state risk management revolving fund established by section 41D-4, Hawaii Revised Statutes, the sum of $12,000,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the roadways surrounding the King Kamehameha III elementary school, including for planning, design, construction, and appurtenances.

The sum appropriated shall be expended by the department of transportation for the purposes of this Act.

SECTION 5. There is appropriated out of the state risk management revolving fund established by section 41D-4, Hawaii Revised Statutes, the sum of $12,000,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the design and construction of piers, loading docks, electrical systems, pavement resurfacing, and appurtenances necessary to restore the Lahaina small boat harbor damaged by the 2023 Maui wildfires.

The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

SECTION 6. The department of accounting and general services shall submit to the legislature a master coordinated project plan for all projects funded by moneys appropriated out of the state risk management revolving fund that represent a transfer and distribution of property and liability insurance proceeds related to the 2023 Maui wildfires. The department of accounting and general services shall develop the master coordinated project plan in collaboration with the following state agencies:

(1) The department of land and natural resources' division of boating and ocean recreation;

(2) The department of education;

(3) The department of transportation;

(4) The school facilities authority; and

(5) Any other state agency the department of accounting and general services deems necessary;

provided that the department of education and school facilities authority, in conjunction with the comptroller, shall consult with the county of Maui and any other relevant entities deemed necessary to outline the infrastructure redevelopment of Lahaina and help facilitate a master coordinated project plan that will allow all involved agencies and relevant entities to participate in a meaningful and coordinated rebuilding of Lahaina.

SECTION 7. During the period of construction of the King Kamehameha III elementary school, the department of education shall transfer exclusive site control over the new school property to the school facilities authority; provided that exclusive site control shall revert to the department of education upon the completion of construction of the elementary school.

Within thirty days after the effective date of this Act, the department of accounting and general services shall transfer to the school facilities authority all existing plans, designs, documents, active contracts, and any other materials deemed necessary for the construction of the King Kamehameha III elementary school. The department of accounting and general services shall, upon request of the school facilities authority, provide technical assistance, consultation, and other support services as necessary to facilitate the transition, construction, and continued development of the King Kamehameha III elementary school.

SECTION 8. (a) The school facilities authority shall submit a monthly milestone progress report to the governor and legislature no later than five days after the end of each month; provided that the report shall include:

(1) Critical path items;

(2) Project timelines;

(3) Key construction milestones; and

(4) Actions necessary to secure matching or supplemental funds to ensure the timely completion of the King Kamehameha III elementary school.

(b) If the governor, upon consultation with the comptroller, determines that the school facilities authority is at risk of failing to meet the deadlines necessary to obtain matching or supplemental funds, the governor may transfer expending authority, exclusive site control, and project management responsibilities related to the construction of King Kamehameha III elementary school, in whole or in part, from the school facilities authority to the department of accounting and general services, or another appropriate state agency.

SECTION 9. No moneys appropriated for a project under this Act shall be available for expenditure until funding for the entire cost for the respective project has been made available, as determined by the comptroller.

SECTION 10. This Act shall take effect on July 1, 2026.

THE SENATE	S.B. NO.	2930
THIRTY-THIRD LEGISLATURE, 2026		S.D. 2
STATE OF HAWAII		H.D. 1
		C.D. 1