STAND. COM. REP. NO. 2666

Honolulu, Hawaii

RE: S.B. No. 2074

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 Economic Development and Tourism and Government Operations, to which was referred S.B. No. 2074 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Allow the naming rights of the Stadium Facility and Convention Center Facility to be leased to any public or private entity;

(2) Require any revenues derived from advertising or marketing in or on the Stadium Facility or Convention Center Facility to be deposited into the appropriate special fund of the facility;

(3) Authorize the display of the name of any entity that leased the naming rights to a stadium operated by the Stadium Authority on the exterior of the stadium; and

(4) Exempt concessions within the stadium facility and convention center from chapter 102, Hawaii Revised Statutes.

Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Stadium Authority; Stanford Carr Development, LLC; and CARES.

Your Committees received testimony in opposition to this measure from Scenic America, The Outdoor Circle, and five individuals.

Your Committees received comments on this measure from the Department of Budget and Finance, Hawaiʻi Tourism Authority, and UNITE HERE! Local 5.

Your Committees find that naming rights are a standard revenue tool that can help reduce ongoing reliance on public support while the Stadium District is built out and sustainably fund long-term operations and maintenance. Naming rights are a widely used approach across major venues nationwide and a practical option to generate predictable, contract-based revenue. This measure will support the creation of higher-quality facilities by generating additional revenue opportunities for the stadium and convention center.

Your Committees acknowledge the concerns raised in testimony by the Hawaii Tourism Authority and Department of Budget and Finance that allowing the leasing of naming rights for the Convention Center Facility may threaten the tax-exempt status of general obligation bonds used to finance certain repair and maintenance projects due to federal tax regulations restricting the private use of proceeds from tax-exempt bonds and capital improvement projects financed by those proceeds. Therefore, amendments to this measure are necessary to address this matter.

Accordingly, your Committees have amended this measure by:

(1) Inserting language to clarify that concessions within the Stadium Facility shall be exempt from chapter 102, Hawaii Revised Statutes, relating to concessions on public property;

(2) Deleting language that would have exempted concessions in or on the Convention Center Facility from chapter 102, Hawaii Revised Statutes, relating to concessions on public property;

(3) Deleting language that would have allowed the Hawaii Tourism Authority to lease the naming rights of the Convention Center Facility to any public or private entity;

(4) Deleting language that would have required any revenues derived from advertising or marketing in or on the Convention Center Facility to be deposited into the Convention Center Enterprise Special Fund;

(5) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Economic Development and Tourism and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2074, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2074, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Economic Development and Tourism and Government Operations,

________________________________ ANGUS L.K. MCKELVEY, Chair

________________________________ LYNN DECOITE, Chair