STAND. COM. REP. NO. 255-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2411

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. 2411 entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish and appropriate funds into and out of the Hawaii Employer-Led Sector Partnerships Special Fund to provide stable and diversified funding for employer-led, demand-driven sector partnerships aligned with the State's economic priorities; and

(2) Require the Department of Business, Economic Development, and Tourism to coordinate its sector partnership activities with the Workforce Development Council.

Your Committee received testimony in support of this measure from the University of Hawaiʻi System; Kohala Coast Resort Association; Blue Startups; OM Venture Capital; Photonworks Engineering; The Maritime Group; Mobile IT Force; Chamber of Commerce Hawaii; AE Consulting LLC; and four individuals. Your Committee received comments on this measure from the Department of Business, Economic Development and Tourism.

Your Committee finds that employer-led, demand-driven sector partnerships align education, training, and workforce systems with real-time industry needs and strengthen workforce readiness. Your Committee further finds that sector partnerships help the workforce ecosystem by improving employer participation, ensuring programs reflect industry needs, and supporting worker retention and advancement. Your Committee also finds that establishing a dedicated funding source within the Department of Business, Economic Development, and Tourism will provide stable support for these ongoing coordination activities and better align workforce investments with the State's economic development priorities.

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.

Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider an appropriation amount of $700,000.

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. 2411, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2411, H.D. 1, and be referred to your Committee on Labor.

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

____________________________

GREGGOR ILAGAN, Chair