SB2930 SD2

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 further 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 spreadsheet, 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 also finds that the development of a master coordinated project spreadsheet 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 spreadsheet 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 established by section 41D-4, Hawaii Revised Statutes, 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) The King Kamehameha III elementary school roadway;

(D) The Lahaina small boat harbor; and

(E) The Lahaina public library; and

(2) Require the department of accounting and general services to submit to the legislature a master coordinated project spreadsheet developed in collaboration with certain state agencies, the county of Maui, and relevant private entities.

SECTION 2. There is appropriated out of the state risk management revolving fund established by section 41D-4, Hawaii Revised Statutes, the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 for the King Kamehameha III elementary school.

The sum appropriated shall be expended by the department of education 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 $ or so much thereof as may be necessary for fiscal year 2026-2027 for the King Kamehameha III elementary school roadway.

The sum appropriated shall be expended by the department of transportation 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 $ or so much thereof as may be necessary for fiscal year 2026-2027 for David Malo circle and Piilani homes.

The sum appropriated shall be expended by the Hawaii public housing authority 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 $ or so much thereof as may be necessary for fiscal year 2026-2027 for the Lahaina small boat harbor.

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

SECTION 6. There is appropriated out of the state risk management revolving fund established by section 41D-4, Hawaii Revised Statutes, the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 for the Lahaina public library.

The sum appropriated shall be expended by the Hawaii state public library system for the purposes of this Act.

SECTION 7. The department of accounting and general services shall submit to the legislature a master coordinated project spreadsheet 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 spreadsheet 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; and

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

provided that the department of accounting and general services shall consult with the county of Maui and any other relevant entities the department of accounting and general services deems necessary to outline the infrastructure redevelopment of Lahaina and help facilitate a master coordinated project spreadsheet that will allow all involved agencies and relevant entities to participate in a meaningful and coordinated rebuilding of Lahaina.

SECTION 8. No moneys appropriated for a project under sections 2, 3, 4, 5, or 6 of 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 9. This Act shall take effect on July 1, 2525.

Report Title:

DAGS; State Risk Management Revolving Fund; Wildfires; Report; Appropriation

Description:

Increases the expenditure ceiling and appropriates funds out of the State Risk Management Revolving Fund established by section 41D-4, HRS, to enable the Department of Accounting and General Services, State Risk Management and Insurance Administration to transfer and distribute property and liability insurance proceeds related to the 2023 Maui wildfires to applicable accounts. Specifically appropriates moneys out of the State Risk Management Revolving Fund to the Department of Education for the King Kamehameha III Elementary School; Department of Transportation for the King Kamehameha III Elementary School Roadway; Hawaii Public Housing Authority for the David Malo Circle and Piilani homes; Department of Land and Natural Resources for the Lahaina Small Boat Harbor; and Hawaii State Public Library System for the Lahaina Public Library. Requires the Department of Accounting and General Services to submit to the Legislature a master coordinated project spreadsheet developed in collaboration with certain state agencies, the County of Maui, and other relevant entities. Requires full funding for the projects for which funds are appropriated to be available before expenditure. Effective 7/1/2525. (SD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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