STAND. COM. REP. NO. 257-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2138

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 Economic Development & Technology, to which was referred H.B. No. 2138 entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

The purpose of this measure is to establish a Hilo-Kona Transportation Pilot Program within the Department of Business, Economic Development, and Tourism to study, plan, evaluate, implement, and trial transportation routes and services connecting Hilo and Kona.

Your Committee received testimony in support of this measure from the Department of Research and Development for the County of Hawaiʻi; Hawaii Transportation Association; and two individuals. Your Committee received comments on this measure from the Department of Business, Economic Development and Tourism.

Your Committee finds that residents and visitors frequently travel between East Hawaii and West Hawaii, particularly between Hilo and Kona, for employment, education, medical services, commerce, and tourism. However, limited access to efficient, reliable, and affordable transportation options has created barriers to economic activity, workforce mobility, and access to essential services. Your Committee further finds that a pilot program that includes a coordinated evaluation of transportation solutions, including demand-response transit, route expansions, and multimodal corridor improvements, will strengthen interregional connectivity, support economic growth, and help improve the transportation system on Hawaii Island.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

(2) 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 Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2138, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2138, H.D. 1, and be referred to your Committee on Transportation.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

____________________________

GREGGOR ILAGAN, Chair