STAND. COM. REP. NO. 3366

Honolulu, Hawaii

RE: H.B. No. 2118

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Water, Land, Culture and the Arts and Economic Development and Tourism, to which was referred H.B. No. 2118, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Transfer the State Foundation on Culture and the Arts and the King Kamehameha Celebration Commission from the Department of Accounting and General Services to the Department of Business, Economic Development, and Tourism;

(2) Transfer certain authority and responsibilities held by the Comptroller regarding the Works of Art Special Fund to the Director of Business, Economic Development, and Tourism; and

(3) Appropriate funds for positions within the Department of Business, Economic Development, and Tourism.

Your Committees received testimony in support of this measure from the Department of Accounting and General Services, State Foundation on Culture and the Arts, King Kamehameha Celebration Commission, and two individuals.

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

Your Committees received comments on this measure from the Department of Business, Economic Development, and Tourism.

Your Committees find that the King Kamehameha Celebration Commission and State Foundation on Culture and the Arts are statutorily under the administration of the Department of Accounting and General Services. Your Committees believe that the purposes and missions of both entities align more with the Department of Business, Economic Development, and Tourism. This measure will improve administrative efficiency, provide more opportunities for valuable collaboration, and better facilitate the operations of the King Kamehameha Celebration Commission and State Foundation on Culture and the Arts

Your Committees have amended this measure by:

(1) Inserting blank appropriation amounts;

(2) Inserting an effective date of January 1, 3000, to encourage further discussion; and

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

Your Committees note that this measure, as amended, contains appropriations for unspecified amounts. Should your Committee on Ways and Means choose to deliberate on this measure, your Committees respectfully request that it consider inserting an appropriation amount of $70,000 for the establishment of one full-time equivalent (1.0 FTE) temporary administrative position and $175,000 for the establishment of one full-time equivalent (1.0 FTE) legislative coordinator position within the Department of Business, Economic Development, and Tourism.

As affirmed by the records of votes of the members of your Committees on Water, Land, Culture and the Arts and Economic Development and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2118, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2118, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Water, Land, Culture and the Arts and Economic Development and Tourism,

________________________________ LYNN DECOITE, Chair

________________________________ CHRIS LEE, Chair