STAND. COM. REP. NO. 2665

Honolulu, Hawaii

RE: S.B. No. 2374

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 Agriculture and Environment, to which was referred S.B. No. 2374 entitled:

"A BILL FOR AN ACT RELATING TO A BLUE ECONOMY,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Blue Economy Working Group to study how to develop and support marine-based economic activities that align with the State's decarbonization and restorative food production goals; and

(2) Require a report to the Legislature.

Your Committees received testimony in support of this measure from the Department of Agriculture and Biosecurity, Imua Alliance, Hawaiʻi Food+ Policy, and three 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 blue economic ventures align directly with the State's economic and climate goals. As the blue economy expands, it offers opportunities for economic diversification, high-wage job creation, and decarbonization. While the State possesses a strategic advantage in marine-based industries due to its ocean geography and unique cultural heritage, a coordinated cross-sector policy framework is necessary to compete with other coastal states and nations as an epicenter of blue economy innovation. This measure establishes a sustainable framework to capitalize on the blue economy to advance the State's climate, food production, and equity objectives.

Your Committees have amended this measure by:

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

(2) 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 Agriculture and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2374, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2374, 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 Agriculture and Environment,

________________________________ MIKE GABBARD, Chair

________________________________ LYNN DECOITE, Chair