STAND. COM. REP. NO. 2872

Honolulu, Hawaii

RE: S.B. No. 3332

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. 3332, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STATE-FUNDED TRAVEL,"

begs leave to report as follows:

The purpose and intent of this measure is to promote efficiency, accountability, and resourcefulness in the use of public funds.

More specifically, this measure:

(1) Establishes a two-year moratorium on state-funded travel for certain state agencies, with certain exceptions;

(2) Permits the Department of Accounting and General Services to adopt rules to implement the measure's provisions; and

(3) Requires reports to the Legislature.

Your Committee received written comments in support of this measure from the Department of Accounting and General Services and one individual.

Your Committee received written comments in opposition to this measure from the Department of Commerce and Consumer Affairs, University of Hawaii Professional Assembly, and two individuals.

Your Committee received written comments on this measure from the Department of Education, State Procurement Office, and Hawaii State Public Library System.

Your Committee finds that the State is entering a period of fiscal uncertainty marked by slowing revenue growth, reductions in federal support, rising costs of government operations, and increasing demands on limited public resources. Your Committee also finds that state-funded travel for conferences, forums, and professional development, while often beneficial, must be closely scrutinized to ensure that it is essential, cost-effective, and aligned with the State's highest priorities.

Should a Committee in the House of Representatives hear this measure, your Committee respectfully requests that it consider the written comments offered by the State Procurement Office. In its written comments, the State Procurement Office argues that the Department of Accounting and General Services already enforces detailed administrative rules governing travel for all executive branch agencies, which set clear standards for approvals, cost control, and accountability to ensure that state-funded travel is managed responsibly and efficiently. The State Procurement Office also argues that existing administrative rules allow agencies to evaluate travel requests individually to ensure that critical activities, such as professional development, training, and collaboration, are not disrupted, and that imposing a blanket moratorium, even with exceptions, risks limiting the State's ability to respond quickly to emerging needs and beneficial opportunities. Your Committee also notes that the State Procurement Office has proposed amendments to the measure that would replace the travel moratorium with enhanced reporting requirements to ensure that state-funded travel aligns with the State's priorities.

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. 3332, 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