Bills

SB 3279: BOE; DOE; Internal Audit Office; Establishment; Appropriation

Session Year: 2025-2026
House: Senate
Latest Version Date: 2026-03-27

Current Status:

Failed

(2026-03-30: Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with Representative(s) Amato voting aye with reservations; none voting no (0) and Representative(s) Cochran, Lowen, Perruso, Quinlan excused (4).)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Final Decking

Enacted

What does this bill do?

The bill creates a Board of Education Internal Audit Office inside the Department of Education to conduct program and financial reviews of key initiatives, do desk reviews of other programs, and review external audits. It also requires the Board of Education to form a permanent board committee focused on audits and provides funding to start the office.

Version:

Establishes the Board of Education Internal Audit Office. Requires the Board of Education to establish, as a standing committee of the Board, a standing committee with a scope that includes audit-related responsibilities. Appropriates funds. Effective 7/1/3000. (HD1)

Version:

SB3279 HD1

THE SENATE	S.B. NO.	3279
THIRTY-THIRD LEGISLATURE, 2026		S.D. 1
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

RELATING TO THE DEPARTMENT OF EDUCATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that section 5.1 of the bylaws of the board of education establishes four standing committees, including the audit committee with a scope that relates to accounting and financial reporting processes; compliance with legal and regulatory requirements; and systems of internal controls over financial reporting and compliance with the adopted codes of conduct and ethical standards, including regular review and approval of internal audit plans.

The legislature also finds that board of education policy 303-3 requires the department of education to "conduct a program and fiscal evaluation of its key strategic initiatives to identify program improvements and inform the redirection of financial and human resources to support the effective implementation of the Department's Strategic Plan for improved outcomes for students as well as in furtherance of the Board's goals." The policy also requires the department to "conduct desk reviews on all other programs in a timely manner."

Accordingly, the purpose of this Act is to:

(1) Establish in statute the board of education internal audit office to perform the evaluations required by the board's policy and review external audits; and

(2) Require the board of education to establish, as a standing committee of the board, a standing committee with a scope that includes audits.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding two new sections to part IV, subpart B, to be appropriately designated and to read as follows:

"§302A- Board of education internal audit office; established; duties. (a) There is established within the department the board of education internal audit office.

(b) The board of education internal audit office shall:

(1) Conduct program and fiscal evaluations of the department's key strategic initiatives to identify program improvements and inform the redirection of financial and human resources to support the effective implementation of the department's strategic plan for improved outcomes for students, and in furtherance of the board's goals;

(2) Conduct desk reviews on all other programs in a timely manner; and

(3) Review external audits relating to the department and submit to the board as a whole recommendations for review or further action.

§302A- Board of education standing committee on audit‑related responsibilities. The board shall establish, as a standing committee of the board, a standing committee with a scope that includes audit-related responsibilities."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment and functions of the board of education internal audit office.

The sum appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 3000.

Report Title:

BOE; DOE; Internal Audit Office; Establishment; Appropriation

Description:

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

SB3279 SD1

THE SENATE	S.B. NO.	3279
THIRTY-THIRD LEGISLATURE, 2026		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE DEPARTMENT OF EDUCATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

SECTION 1. The legislature finds that section 5.1 of the bylaws of the Hawaii state board of education establishes three standing committees, including the finance and infrastructure committee with a scope that includes audit-related responsibilities.

Accordingly, the purpose of this part is to:

(1) Establish in statute the board of education internal audit office to perform the evaluations required by the board's policy and review external audits; and

(2) Require the board to establish a standing committee with a scope that includes audits.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding two new sections to part IV, subpart B, to be appropriately designated and to read as follows:

"§302A- Board of education internal audit office; established; duties. (a) There is established within the department the board of education internal audit office.

(b) The board of education internal audit office shall:

(2) Conduct desk reviews on all other programs in a timely manner; and

(3) Review external audits relating to the department and submit to the board as a whole recommendations for review or further action.

§302A- Board of education standing committee on audit‑related responsibilities. The board shall establish a standing committee with a scope that includes audit-related responsibilities."

The sum appropriated shall be expended by the department of education for the purposes of this Act.

PART II

SECTION 4. No funds appropriated to the department of education for fiscal year 2026-2027 shall be expended to fund or support the following:

(1) Positions (position title, position number, amount):

(A) Internal audit director, #73090, $153,751;

(B) Secretary IV, #59882, $54,986;

(D) Auditor specialist II, #602040, $116,430;

(E) Auditor specialist II, #602519, $119,713;

(F) Auditor specialist II, #603635, $114,823;

(G) Auditor specialist II, #608578, $111,674;

(H) Auditor specialist II, #E11409, $110,136;

(I) Evaluation specialist II, #E10879, $110,136;

(J) Evaluation specialist II, #E10880, $110,136; and

(K) Evaluation specialist II, #E11498, $110,136; or

(2) Expenses (description, amount):

(A) Other current expenses, $53,530; and

(B) Equipment, $4,995.

PART III

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2026.

Report Title:

DOE; BOE; Audit; Program Evaluations; Fiscal Evaluations; Appropriation; Expenditure Prohibitions

Description:

Establishes the 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 and review external audits. Requires the Board of Education to establish a standing committee with a scope that includes audit-related responsibilities. Prohibits the Department of Education from expending FY 2026-2027 appropriated funds for certain auditor, evaluation specialist, and related positions and expenses. Appropriates funds. (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

SB3279

THE SENATE	S.B. NO.	3279
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

A BILL FOR AN ACT

relating to the Department of Education.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

Accordingly, the purpose of this Act is to:

(1) Establish in statute the board of education audit office to perform the evaluations required by the board's policy; and

(2) Require the board to establish a standing committee with a scope that includes audits.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding two new sections to part IV, subpart B, to be appropriately designated and to read as follows:

"§302A- Board of education internal audit office; established; duties. (a) There is established within the department the board of education internal audit office.

(b) The board of education internal audit office shall conduct program and fiscal evaluations of the department's key strategic initiatives to identify program improvements and inform the redirection of financial and human resources to support the effective implementation of the department's strategic plan for improved outcomes for students, as well as in furtherance of the board's goals. The board of education internal audit office shall also conduct desk reviews on all other programs in a timely manner.

§302A- Board of education standing committee on audit‑related responsibilities. The board shall establish a standing committee with a scope that includes audit-related responsibilities."

The sum appropriated shall be expended by the department of education for the purposes of this Act.

PART II

SECTION 4. No funds appropriated to the department of education for fiscal year 2026-2027 shall be expended to fund or support the following:

(1) Positions (position title, position number, amount):

(A) Internal audit director, #73090, $153,751;

(B) Secretary IV, #59882, $54,986;

(D) Auditor specialist II, #602040, $116,430;

(E) Auditor specialist II, #602519, $119,713;

(F) Auditor specialist II, #603635, $114,823;

(G) Auditor specialist II, #608578, $111,674;

(H) Auditor specialist II, #E11409, $110,136;

(I) Evaluation specialist II, #E10879, $110,136;

(J) Evaluation specialist II, #E10880, $110,136; and

(K) Evaluation specialist II, #E11498, $110,136; or

(2) Expenses (description, amount):

(A) Other current expenses, $53,530; and

(B) Equipment, $4,995.

PART III

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2026.

INTRODUCED BY:	_____________________________

Report Title:

DOE; BOE; Audit; Program Evaluations; Fiscal Evaluations; Appropriation

Description:

Establishes the 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. Requires the Board of Education to establish a standing committee with a scope that includes audit-related responsibilities. Prohibits the Department of Education from expending FY 2026-2027 appropriated moneys for certain auditor, evaluation specialist, and related positions and expenses. Appropriates moneys.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

Date	Status
Mar 30, 2026	Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with Representative(s) Amato voting aye with reservations; none voting no (0) and Representative(s) Cochran, Lowen, Perruso, Quinlan excused (4).
Mar 30, 2026	Reported from EDN (Stand. Com. Rep. No. 1508-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
Mar 24, 2026	The committee on EDN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Woodson, La Chica, Amato, Evslin, Kapela, Olds, Muraoka, Souza; Ayes with reservations: none; 0 Noes: none; and 2 Excused: Representative(s) Garrett, Kila.
Mar 20, 2026	Bill scheduled to be heard by EDN on Tuesday, 03-24-26 2:00PM in House conference room 309 VIA VIDEOCONFERENCE.
Mar 10, 2026	Referred to EDN, FIN, referral sheet 16
Mar 10, 2026	Pass First Reading
Mar 6, 2026	Received from Senate (Sen. Com. No. 131) in amended form (SD 1).
Mar 6, 2026	Report Adopted; Passed Third Reading. Ayes, 24; Aye(s) with reservations: none. Noes, 0 (none). Excused, 1 (Senator(s) Ihara). Transmitted to House.
Mar 5, 2026	One Day Notice 03-06-26.
Mar 5, 2026	Reported from WAM (Stand. Com. Rep. No. 2859) with recommendation of passage on Third Reading.
Mar 3, 2026	The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.
Feb 25, 2026	The committee(s) on WAM deferred the measure until 03-03-26 10:15AM; Conference Room 211 & Videoconference.
Feb 23, 2026	The committee(s) on WAM will hold a public decision making on 02-25-26 10:56AM; Conference Room 211 & Videoconference.
Feb 18, 2026	Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
Feb 18, 2026	Reported from EDU (Stand. Com. Rep. No. 2327) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
Feb 11, 2026	The committee(s) on EDU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EDU were as follows: 4 Aye(s): Senator(s) Kim, Kidani, Hashimoto, DeCorte; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fukunaga.
Feb 6, 2026	The committee(s) on EDU has scheduled a public hearing on 02-11-26 1:30PM; Conference Room 229 & Videoconference.
Feb 2, 2026	Referred to EDU, WAM.
Jan 30, 2026	Passed First Reading.
Jan 30, 2026	Introduced.

Date	Description	Location	Votes
Mar 24, 2026	The committee on EDN recommend that the measure be PASSED, WITH AMENDMENTS	House Standing Committee on Education	8 0 2 Passed
Mar 6, 2026	Third Reading	Senate Floor	24 0 1 Passed
Mar 3, 2026	The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED	Senate Standing Committee on Ways and Means	12 0 1 Passed
Feb 11, 2026	The committee(s) on EDU recommend(s) that the measure be PASSED, WITH AMENDMENTS	Senate Standing Committee on Education	4 0 1 Passed

Key

Pro

Against

Did Not Vote

SSCR2859 Jordon Higa SSCR Ainoa Naniole 2 27 2026-03-03T00:43:00Z 2026-03-05T19:07:00Z 2026-03-05T19:07:00Z 2 324 1790 House of Representatives 23824 77 25 2111 16.00 Print 0 0 false false false EN-US JA X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman",serif;}

STAND. COM. REP. NO. 2859

Honolulu, Hawaii

RE: S.B. No. 3279

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. 3279, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to increase accountability in public education.

Specifically, this measure:

(1) Statutorily establishes the Board of Education Internal Audit Office and appropriates moneys for its establishment and functions;

(2) Requires the Board of Education to establish a standing committee with a scope that includes audits; and

(3) Prohibits moneys appropriated to the Department of Education from being used to fund or support certain positions or expenses.

Your Committee received written testimony in opposition to this measure from one individual.

Your Committee received written comments on this measure from the Board of Education, Department of Education, and one individual.

Your Committee finds that program and fiscal evaluations are essential for ensuring that programs are efficient, effective, and accountable. Your Committee further finds that statutorily establishing a Board of Education Internal Audit Office and requiring the Board of Education to maintain a standing committee with a scope that includes audit-related responsibilities are vital to providing oversight that ensures the effective use of Department resources. To avoid the potential over-expenditure of funds, your Committee notes that this measure prohibits moneys from being expended on certain existing functions and positions.

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. 3279, S.D. 1, and recommends that it pass Third Reading.

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

________________________________

DONOVAN M. DELA CRUZ, Chair

SSCR2327 Finnley Brakke SSCR Ainoa Naniole 2 26 2026-02-16T22:15:00Z 2026-02-18T03:22:00Z 2026-02-18T03:22:00Z 3 395 2227 House of Representatives 22279 92 29 2621 16.00 Print 110 0 0 false false false EN-US JA X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman",serif;}

STAND. COM. REP. NO. 2327

Honolulu, Hawaii

RE: S.B. No. 3279

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 Education, to which was referred S.B. No. 3279 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the 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;

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

(4) Appropriate funds.

Your Committee received testimony in support of this measure from two individuals.

Your Committee received comments on this measure from the Department of Education and Board of Education.

Your Committee finds that high-quality evaluation and audit functions within the Department of Education are integral to ensuring alignment with strategic priorities, effective use of resources, and improved outcomes for students. Your Committee further finds that the establishment of an internal committee with oversight and accountability functions specifically related to audits is increasingly important due to federal funding cuts and uncertain economic conditions. This measure therefore strengthens programmatic and fiscal oversight for the Department of Education.

Your Committee has amended this measure by:

(1) Requiring the Board of Education Internal Audit Office to review external audits relating to the Department of Education and submit to the Board as a whole recommendations for review or further action;

(2) Amending section 1 to reflect its amended purpose; and

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

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

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

________________________________

DONNA MERCADO KIM, Chair

Date	Testimony PDF
Mar 23, 2026	SB3279_SD1_TESTIMONY_EDN_03-24-26_.PDF
Feb 24, 2026	SB3279_SD1_TESTIMONY_WAM_02-25-26_.PDF
Feb 11, 2026	SB3279_TESTIMONY_EDU_02-11-26_.PDF

Discussed in Hearing

5MIN

Authors shown for version:
SB3279_HD1 (3/27/2026)

SB 3279: BOE; DOE; Internal Audit Office; Establishment; Appropriation

Current Status:

What does this bill do?

House Standing Committee on Education

House Standing Committee on Education

Senate Standing Committee on Education

Senate Standing Committee on Economic Development and Tourism

Senate Standing Committee on Education

Senate Standing Committee on Economic Development and Tourism