STAND. COM. REP. NO. 2614

Honolulu, Hawaii

RE: S.B. No. 2548

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 2548 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:

(1) Require the School Facilities Authority to establish geographically based capital improvement project districts for the localized management of deferred maintenance;

(2) Transfer all deferred maintenance functions, funds, and vacant facilities development branch positions from the Department of Education to the School Facilities Authority as intended and contemplated in Act 72, Session Laws of Hawaii 2020; and

(3) Appropriate funds.

Your Committee received testimony in support of this measure from Hawaiʻi Children's Action Network Speaks! and one individual.

Your Committee received comments on this measure from the Department of the Attorney General; Department of Education; Hawaiʻi School Facilities Authority; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; and United Public Workers, AFSCME Local 646, AFL-CIO.

Your Committee finds that the Department of Education's deferred maintenance backlog across public school facilities inhibits the State's capacity to offer local students safe, functional learning environments. The current governance structure is managed largely from Oahu, creating barriers and delays for project implementation on neighbor islands. Geographically based capital improvement project districts would enable a more localized and accountable approach to managing deferred maintenance. This measure aims to improve responsiveness, coordination with school communities, and stewardship of public resources.

Your Committee has amended this measure by:

(1) Deleting language that would have transferred all deferred maintenance functions, funds, and vacant Facilities Development Branch positions from the Department of Education to the School Facilities Authority;

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

(3) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2548, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2548, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Education,

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DONNA MERCADO KIM, Chair