STAND. COM. REP. NO. 2414

Honolulu, Hawaii

RE: S.B. No. 2930

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 Government Operations, to which was referred S.B. No. 2930 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure 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 transfer and distribute property and liability insurance proceeds related to the 2023 Maui wildfires for the rebuilding and restoration of state facilities in Lahaina; 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.

Your Committee received testimony in support of this measure from the Department of Accounting and General Services.

Your Committee finds that, due to insurance claims for state property damaged or destroyed in Lahaina by the 2023 Maui wildfires, the State Risk Management Revolving Fund has received property and liability insurance proceeds that are intended to be used to repair, rebuild, and restore state facilities and infrastructure. However, expenditure of funds from the Revolving Fund is subject to legislative appropriation and expenditure limits that forestall their timely use to rebuild state facilities in Lahaina. Furthermore, your Committee believes that a master coordinated project spreadsheet needs to be developed to synthesize the efforts of the various agencies involved with rebuilding efforts in Lahaina so that all proceeds in the fund are leveraged appropriately and responsibly. This measure will ensure the most efficient and timely reconstruction of state property in Lahaina.

Your Committee has amended this measure by:

(1) Changing the appropriation amount from $211,000,000 to an unspecified amount to encourage further discussion on the measure;

(2) Inserting an effective date of July 1, 2525, to encourage further discussion; and

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

Your Committee notes that this measure, as amended, contains an unspecified appropriation amount. Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider raising the expenditure ceiling and inserting an appropriation amount of $211,000,000 for the transfer and distribution of property and liability insurance proceeds related to the 2023 Maui wildfires. Your Committee also requests that the Department of Accounting and General Services submit a master coordinated project spreadsheet to your Committee on Ways and Means before any further deliberation on this measure is conducted.

As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2930, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2930, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Government Operations,

________________________________

ANGUS L.K. MCKELVEY, Chair