CONFERENCE COMMITTEE REP. NO. 231-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2543

S.D. 2

H.D. 2

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir and Madam:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2543, S.D. 2, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO STATE CONSTRUCTION PROJECTS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Establish a five-year Office of the State Construction Manager Pilot Program to provide guidance and recommendations on the design review of certain state construction projects administered by the Department of Accounting and General Services and Department of Education;

(2) Require the Office of the State Construction Manager to assign employees to the certain county agencies to review and approve permit applications under the Pilot Program;

(3) Establish the Design Review Special Fund; and

(4) Appropriate funds for the establishment of the Office of the State Construction Manager Pilot Program and necessary positions.

Your Committee on Conference finds that state construction projects often stall or run over budget because of the fragmentation in the design review process and coordination across agencies required for planning, permitting, and accessibility compliance purposes. This measure will allow the Legislature to make an informal decision on whether establishing a centralized and impartial construction management authority will streamline and expedite state construction projects and improve their quality.

Your Committee on Conference has amended this measure by:

(1) Specifying that the Office of the State Construction Manager shall provide guidance and recommendations on the design review of certain state construction projects that are located in any county with a population of less than five hundred thousand;

(2) Clarifying that the Office of the State Construction Manager shall assign employees to the Department of Public Works of each applicable county who shall have the sole responsibility for reviewing and approving permit applications submitted for certain construction projects in the respective county;

(3) Inserting an appropriation amount of $3,034,000 for the implementation of the Office of the State Construction Manager Pilot Program, including the establishment of:

(A) One full-time equivalent (1.0 FTE) state construction manager position within the Office of the Comptroller; and

(B) Five full-time equivalent (5.0 FTE) positions within the Office of the State Construction Manager, including three full-time equivalent (3.0 FTE) positions to be assigned to applicable county agencies;

(4) Inserting an effective date of July 1, 2026; and

(5) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2543, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2543, S.D. 2, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ JACKSON D. SAYAMA Co-Chair	____________________________ ANGUS L.K. MCKELVEY Chair
____________________________ MARK J. HASHEM Co-Chair	____________________________ GLENN WAKAI Co-Chair
____________________________ MIKE LEE Co-Chair	____________________________ BRANDON J.C. ELEFANTE Co-Chair