STAND. COM. REP. NO. 1128-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2458

H.D. 3

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 2458, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO SURVEILLANCE PRICING,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Prohibit persons from using surveillance pricing in the sale of food; and

(2) Exempt certain discounts and restaurants.

Your Committee received testimony in support of this measure from the Hawaiʻi Public Health Institute; Hawaiʻi Children's Action Network Speaks!; Wainiha Country Market; Hawaiʻi Alliance for Progressive Action; Green Party of Hawaiʻi; Hawaiʻi Food+ Policy; Hawaiʻi Appleseed Center for Law & Economic Justice; Hawaiʻi Hunger Action Network; Hawaiʻi Good Food Alliance; and numerous individuals. Your Committee received testimony in opposition to this measure from the Chamber of Progress and TechNet. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs.

Your Committee finds that the expansion of surveillance-based pricing practices raises serious concerns regarding fairness, transparency, and consumer protection within the State's legal framework, particularly for residents who already experience disproportionate economic strain. Your Committee further finds that individualized, data driven price setting has the potential to exacerbate inequities faced by low-income communities, many of whom rely on consistent food pricing to maintain basic food security and household stability. Your Committee believes that prohibiting surveillance pricing for food purchases strengthens legal safeguards against discriminatory economic practices and upholds the State's commitment to equity and fair treatment under the law.

Your Committee has amended this measure by:

(1) Removing the exemption for loyalty programs; 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 Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2458, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2458, H.D. 3.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair