STAND. COM. REP. NO. 62-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2602

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committees on Tourism and Economic Development & Technology, to which was referred H.B. No. 2602 entitled:

"A BILL FOR AN ACT RELATING TO A SUSTAINABLE TOURISM INFRASTRUCTURE,"

beg leave to report as follows:

The purpose of this measure is to establish a matching grant program within the Department of Business, Economic Development, and Tourism to support voluntary sustainability and climate resilience investments in visitor industry infrastructure, maximize return on investment, and ensure transparency and accountability in the use of public funds.

Your Committees received testimony in support of this measure from the Chamber of Commerce Hawaii.

Your Committees find that although the State's visitor industry provides significant economic benefits to the State, these benefits are often offset by the industry's heavy reliance on energy, water, transportation, and coastal assets that are increasingly vulnerable to climate-related risks. Your Committees further find that the strong public support for the green fee enacted in 2025 has highlighted the market demand for efforts aimed at sustainable tourism. This measure is intended to encourage efforts by the visitor industry to implement sustainability and climate resilience measures through the use of a grant program to provide a one-time capital investment in projects that produce measurable sustainability or climate resilience outcomes.

Your Committees have 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.

Your Committees respectfully request your Committee on Finance, should it deliberate on this measure, to consider an appropriation amount of $5,000,000.

As affirmed by the records of votes of the members of your Committees on Tourism and Economic Development & Technology that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2602, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2602, H.D. 1, and be referred to your Committee on Energy & Environmental Protection.

Respectfully submitted on behalf of the members of the Committees on Tourism and Economic Development & Technology,

____________________________ GREGGOR ILAGAN, Chair

____________________________ ADRIAN K. TAM, Chair