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GM 1236

Informing the Legislature that on June 24, 2026, the Governor signed the following bill into law: SB2543 SD2 HD2 CD1 (ACT 135).

2026 Regular Session

Establishes a five-year state pilot office (OSCM) in the Hawaii Comptroller’s Office to centralize and oversee design review for eligible state construction projects, improving acc

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Bill Summary · GM 1236

Summary of GM 1236 (SB2543, SD2, HD2, CD1) – Act 135 (Hawaii, 2026)

Purpose and intent

  • Establish a temporary, five-year pilot program within the Hawaii Office of the Comptroller to create and operate an Office of the State Construction Manager (OSCM).
  • The program is designed to provide centralized design review guidance for certain state construction projects to improve compliance with accessibility laws and project efficiency.
  • Dissolution of the OSCM is targeted for June 30, 2031, absent legislative extension.

Key provisions and changes

  • Establishment of a five-year OSCM pilot in the Comptroller’s office, led by a full-time State Construction Manager (SCM).
    • The SCM is hired by the Comptroller and would report directly to the Comptroller.
    • SCM must hold an active professional license under Hawaii Revised Statutes Chapter 464 for at least five years prior to hire.
    • SCM may not engage in private construction management practice or hold a private management role in any business.
    • SCM salary set by the Comptroller.
  • Scope of duties for the OSCM (design review and oversight for eligible projects):
    • Focus on state construction projects with an estimated design value of $2,000,000 or more.
    • Projects under the Department of Accounting and General Services (DAGS) or the Department of Education (DOE) located in counties with populations under 500,000.
    • Responsibilities include:
    • Reviewing plans, drawings, specifications, and related documents; ensuring final documents are submitted to the Disability and Communication Access Board (DCAB) for accessibility compliance per section 103-50, Hawaii Revised Statutes.
    • Providing exclusive centralized design review services for eligible projects.
    • Assigning an inspector to each eligible project to observe construction.
    • Assigning county Department of Public Works employees to review and approve state project permit applications within their respective counties; these staff would be dedicated to the OSCM program and not tasked with other duties.
  • DOE participation option:
    • DOE may opt into the pilot for specific complex projects but is not required to subject all capital improvement projects to the review process.
  • Funding and financial administration:
    • Fees charged for design review services are determined by the Comptroller in consultation with the SCM.
    • Collected fees go into a Design Review Special Fund, established within the state treasury and administered by the Comptroller.
    • The Fund may receive appropriations and interest; balances stay in the Fund year-to-year and do not lapse to the General Fund until after the OSCM pilot ends.
    • DOE operating and capital funds shall not be diverted to support the Design Review Special Fund.
  • Implementation and reporting:
    • By December 31, 2027, the Comptroller (in consultation with the SCM) must adopt rules to implement the section (pursuant to Chapter 91, Hawaii Revised Statutes).
    • An annual OSCM pilot program report must be prepared and submitted to the Governor and Legislature by twenty days before each regular legislative session in 2027–2031. Reports must cover:
    • Activities and a list/description of projects reviewed.
    • Financial status of the Design Review Special Fund.
    • Assessment on whether to extend the pilot.
    • Other findings, recommendations, and proposed legislation.
  • Definitions:
    • “State agency” = DAGS and DOE.
    • “State construction project” = any improvement on state lands or related activities developed, constructed, or rehabilitated by a state agency.
    • “State lands” = lands owned by the State through any agency.
  • Appropriation:
    • General Fund appropriation of $3,034,000 for FY 2026-2027 to implement the pilot.
    • Funding covers:
    • 1 full-time equivalent (1.0 FTE) SCM position in the Comptroller’s office.
    • 5 FTE positions within OSCM, including 3 FTEs assigned to applicable county agencies.
    • Expenditure authority is with DAGS for the purposes of the Act.

Who is affected

  • State agencies and projects meeting the design-value and location criteria (primarily DAGS and DOE projects in smaller counties) will be subject to the OSCM’s design review process.
  • DOE projects opted into the pilot will be subject to the process for complex projects.
  • County public works staff assigned to support design review and permit review for these state projects.
  • The Design Review Special Fund to collect and manage design-review-related fees.
  • The Department of Education and other state agencies funded through the General Fund, with explicit protections against diverting DOE funds to support the design-review fund.

Timeline and notable dates

  • Effective date: July 1, 2026.
  • Pilot program duration: Five years (through June 30, 2031).
  • December 31, 2027: Required rulemaking to implement the section.
  • Announced annual reporting cycle: Reports due to the Governor and Legislature 20 days prior to the convening of the 2027–2031 regular sessions.
  • Final dissolution: The OSCM pilot program dissolves on June 30, 2031, unless extended by further legislation.

Overall impact

  • Aims to centralize and standardize design review for certain state construction projects to improve accessibility compliance, project oversight, and efficiency.
  • Creates a dedicated, regulated funding mechanism for design-review services via a new Special Fund.
  • Establishes government-wide roles and responsibilities to ensure proper oversight and accountability for large-scale state construction efforts, with explicit reporting to the Legislature.

Compiled from official sources — confirm details with the bill’s official record.

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