STAND. COM. REP. NO. 1524-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2074

S.D. 1

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Water & Land, to which was referred S.B. No. 2074, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STATE FACILITIES,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Exempt concessions within the Stadium Facility from the competitive bidding process;

(2) Allow the Stadium Authority to lease the naming rights of the Stadium Facility or any portion or building of the Stadium Facility to any public or private entity;

(3) Require any revenues derived from advertising or marketing in or on the Stadium Facility to be deposited into the Stadium Development Special Fund; and

(4) Authorize the name of any entity that leased the naming rights to a stadium operated by the Stadium Authority to be displayed on the exterior of the stadium.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Stadium Authority; Retail Merchants of Hawaiʻi; Stanford Carr Development; Avalon Development Company LLC; Hawaiʻi Regional Council of Carpenters; and Pacific Resource Partnership. Your Committee received testimony in opposition to this measure from The Outdoor Circle; UNITE HERE Local 5; and five individuals.

Your Committee finds that this measure reflects a prudent and fiscally responsible approach to strengthening the long‑term financial sustainability of the State's major public facilities by authorizing the Stadium Authority to lease naming rights of the Stadium Facility and generate advertising and marketing revenues. These market‑based revenue tools allow the State to better leverage high‑value public assets while maintaining public ownership and oversight. Similar arrangements nationwide have demonstrated that naming-rights agreements can generate stable, predictable revenue streams that support ongoing operations, maintenance, and capital improvements while reducing reliance on general funds or future taxpayer support.

Your Committee has amended this measure by deleting language that would have limited outdoor advertising displayed on the exterior of a stadium operated by the Stadium Authority to the name of the entity that leased the naming rights of the stadium from the Stadium Authority.

As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2074, S.D. 1, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as S.B. No. 2074, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

____________________________

MARK J. HASHEM, Chair