STAND. COM. REP. NO. 506-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1943

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 Economic Development & Technology and Tourism, to which was referred H.B. No. 1943 entitled:

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

beg leave to report as follows:

The purpose of this measure is to:

(1) Expand the purposes of the establishment and operation of out-of-state offices to include serving Hawaii's business and tourism efforts through various initiatives;

(2) Require, and appropriate funds for, the Department of Business, Economic Development, and Tourism to establish an out-of-state office in Seoul, South Korea; and

(3) Appropriate funds for the Department of Business, Economic Development, and Tourism's Beijing office and Taipei office to promote "Made in Hawaii" branded products and increase the export of Hawaii products.

Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Retail Merchants of Hawaiʻi; Chamber of Commerce Hawaii; and Maui Chamber of Commerce.

Your Committees find that the number of visitors to Hawaii from South Korea and China are growing and these markets represent serious growth opportunities for tourism in Hawaii. South Korea and China are strong locations to fund and deploy the physical presence of the Department of Business, Economic Development, and Tourism. Your Committees further find that there is significant potential for expanding trade cooperation between the Republic of the Philippines and the State, and that this measure should be amended to include the Philippines amongst the international locations where "Made in Hawaii" branded products can be promoted and exported.

Accordingly, your Committees have amended this measure by:

(1) Narrowing the new initiatives added to the purposes of the establishment and operation of out-of-state offices to just collaboration with tourism agencies and stakeholders to execute tourism strategies;

(2) Expanding the uses of the appropriation to include providing funding for the Department of Business, Economic Development, and Tourism's Philippines office to promote "Made in Hawaii" branded products and increase the export of Hawaii products;

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

(4) 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 appropriation amounts of:

(1) $233,500 for the out-of-state office in Seoul, Republic of Korea; and

(2) $50,000 for the Department of Business, Economic Development, and Tourism's Beijing, Philippines, and Taipei offices.

As affirmed by the records of votes of the members of your Committees on Economic Development & Technology and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1943, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1943, H.D. 1, and be referred to your Committee on Finance.

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

____________________________ ADRIAN K. TAM, Chair

____________________________ GREGGOR ILAGAN, Chair