STAND. COM. REP. NO. 3685

Honolulu, Hawaii

RE: H.B. No. 2345

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2345, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SCHOOL FACILITIES,"

begs leave to report as follows:

The purpose and intent of this measure is to improve the efficiency of school facility maintenance.

Specifically, this measure:

(1) Requires the School Facilities Authority to establish geographically based capital improvement project districts within the Department of Education;

(2) Requires the School Facilities Authority to assign staff to each geographically based capital improvement project district;

(3) Transfers from the Department of Education to the School Facilities Authority the authority and related positions and moneys to address deferred maintenance; and

(4) Appropriates moneys to establish the geographically based capital improvement project districts.

Your Committee received written comments in support of this measure from one individual.

Your Committee received written comments in opposition to this measure from the Department of Education and United Public Workers.

Your Committee received written comments on this measure from the Department of Accounting and General Services, School Facilities Authority, and Hawaii Government Employees Association.

Your Committee finds that, under the current Department of Education structure, school capital improvement projects across the State are generally centrally administered. Your Committee further finds that establishing a more localized and responsive approach to managing capital improvement projects will help to establish more regional oversight and management closer to the affected facilities. Your Committee further finds that this approach will improve response times, strengthen coordination with school communities, and enhance accountability for project execution.

Your Committee has amended this measure by:

(1) Specifying that the establishment of capital improvement project districts shall be related to the purpose of management of capital improvement projects, instead of deferred maintenance;

(2) Prohibiting the School Facilities Authority from using general funds for its operations and management; and

(3) Transferring capital improvement project functions from the Department of Education to the School Facilities Authority.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2345, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2345, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair