CONFERENCE COMMITTEE REP. NO. 228-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2930

S.D. 2

H.D. 1

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. 2930, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE STATE RISK MANAGEMENT REVOLVING FUND,"

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) Increase the expenditure ceiling and appropriate funds out of the State Risk Management Revolving Fund (SRMRM) to transfer and distribute property and liability insurance proceeds related to the 2023 Maui wildfires to applicable accounts;

(2) Require the Department of Accounting and General Services (DAGS) to submit to the Legislature a master coordinated project spreadsheet developed in collaboration with certain state agencies, the County of Maui, and other relevant private entities; and

(3) Require full funding for the projects for which funds are appropriated to be available before expenditure.

Your Committee on Conference finds that the State received property and liability proceeds from insurance claims for losses to state facilities and property in Lahaina damaged by the 2023 Maui wildfires, which were deposited into the SRMRM. Because expenditures from the SRMRM are subject to legislative appropriation and expenditure ceiling limits, an increase to the fund's expenditure ceiling is necessary to allow the timely use of these proceeds to rebuild state facilities in Lahaina. Your Committee on Conference also finds that these rebuilding efforts require thorough coordination among multiple state agencies, which may be streamlined through the development and use of a master coordinated project spreadsheet. This measure ensures an efficient, timely, and cost-effective process for the restoration of state facilities and property in Lahaina.

Your Committee on Conference recognizes that the rebuilding of state facilities, such as the project to restore King Kamehameha III Elementary School, is of great importance. As such, your Committee on Conference finds that safeguards should be put in place so that, in the event that the School Facilities Authority (SFA) fails to meet required deadlines, the Governor, in consultation with the Comptroller, may transfer the project, in whole or in part, to DAGS or another appropriate state agency.

Accordingly, your Committee on Conference has amended this measure by:

(1) Replacing the term "master coordinated project spreadsheet" with the term "master coordinated project plan" throughout the measure to ensure that the intent of this measure is effectuated;

(2) Appropriating out of the SRMRM the following amounts:

(A) To be expended by SFA:

(i) $146,000,000 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; and

(ii) $30,000,000 for the planning, design, construction, and appurtenances of offsite infrastructure improvements surrounding the King Kamehameha III Elementary School;

(B) $12,000,000 for the roadways surrounding the King Kamehameha III Elementary School, including for planning, design, construction, and appurtenances, to be expended by the Department of Transportation (DOT); and

(C) $12,000,000 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, to be expended by the Department of Land and Natural Resources (DLNR);

(3) Deleting language that would have appropriated funds for:

(A) David Malo Circle and Piilani Homes, to be expended by the Hawaii Public Housing Authority; and

(B) The Lahaina Public Library, to be expended by the Hawaii State Public Library System;

(4) Clarifying that DAGS shall develop the master coordinated project plan in collaboration with DLNR, the Department of Education (DOE), DOT, SFA, and any other state agency DAGS deems necessary; provided that DOE and SFA, 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;

(5) Inserting language requiring DOE to transfer to SFA exclusive site control over the new King Kamehameha III Elementary School property during the School's construction; provided that exclusive site control shall revert to DOE upon the completion of the School's construction;

(6) Inserting language requiring DAGS to transfer to SFA all material deemed necessary for the construction of King Kamehameha III Elementary School within thirty days after the effective date of the measure and provide upon request support services as necessary to facilitate the transition, construction, and continued development of the School;

(7) Inserting language requiring SFA to submit monthly milestone progress reports to the Governor and Legislature no later than five days after the end of each month;

(8) Inserting language authorizing the Governor to transfer SFA's expending authority, exclusive site control, and project management responsibilities related to the construction of King Kamehameha III Elementary School to DAGS or another appropriate state agency, if the Governor, upon consultation with the Comptroller, determines that SFA is at risk of failing to meet the deadlines necessary to obtain matching or supplemental funds;

(9) Amending section 1 to reflect its amended purpose;

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

    (11) 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. 2930, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2930, S.D. 2, H.D. 1, 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
____________________________ MIKE LEE Co-Chair	____________________________ TROY N. HASHIMOTO Co-Chair