STAND. COM. REP. NO. 2901

Honolulu, Hawaii

RE: S.B. No. 3325

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 Ways and Means, to which was referred S.B. No. 3325, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC SCHOOL MEDICAID REIMBURSEMENTS,"

begs leave to report as follows:

The purpose and intent of this measure is to improve support services for students with special needs.

More specifically, this measure:

(1) Requires the Department of Education to establish an updated plan for maximizing Medicaid reimbursements for administrative and support services provided to students with special needs; and

(2) Requires annual reports to the Legislature.

Your Committee received written comments in support of this measure from the Department of Education, Ava Sofia Foundation (d.b.a. Autism Moms of Kona), and one individual.

Your Committee received written comments on this measure from the Hawaii Government Employees Association.

Your Committee finds that maximizing Medicaid reimbursements allows Hawaii to leverage available federal funds to strengthen special education services without increasing state costs. When reimbursement systems are inconsistent or underutilized, schools lose critical resources that directly impact student access and outcomes. This measure improves accountability by requiring planning, staff training, interagency coordination, and annual reporting on plan implementation and the reinvestment of funds. Your Committee believes that this measure will help ensure that eligible services are properly documented, reimbursed, and reinvested to help students with special needs.

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 S.B. No. 3325, S.D. 1, and recommends that it pass Third Reading.

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

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DONOVAN M. DELA CRUZ, Chair