STAND. COM. REP. NO. 1508-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 3279

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Education, to which was referred S.B. No. 3279, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF EDUCATION,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish and appropriate funds for a Board of Education Internal Audit Office to conduct program and fiscal evaluations of the Department of Education's key strategic initiatives to identify program improvements and provide other benefits;

(2) Require the Board of Education to establish a standing committee with a scope that includes audit-related responsibilities; and

(3) Prohibit the Department of Education from expending fiscal year 2026-2027 appropriated funds for certain auditor, evaluation specialist, and related positions and expenses.

Your Committee received testimony in support of this measure from one individual. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Board of Education and Department of Education.

Your Committee finds that effective oversight and evaluation of the Department of Education's programs and expenditures are essential to ensuring that limited public resources are aligned with strategic priorities and used to improve student outcomes. Your Committee further finds that, while existing Board of Education policies require program and fiscal evaluations, these functions are not currently established in statute. This measure establishes the Internal Audit Office within the Department of Education to conduct program and fiscal evaluations of key strategic initiatives and requires the Board of Education to create a standing committee with audit‑related responsibilities. Your Committee believes that statutorily establishing these oversight functions will strengthen accountability, support data‑informed decision‑making, and enhance transparency in the administration of public education.

Your Committee has amended this measure by:

(1) Deleting language that would have prohibited the Department of Education from expending fiscal year 2026-2027 appropriated funds for certain auditor, evaluation specialist, and related positions and expenses;

(2) Changing the effective date to July 1, 3000; and

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

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. 3279, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3279, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

JUSTIN H. WOODSON, Chair