STAND. COM. REP. NO. 1471-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2400

S.D. 1

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 Transportation, to which was referred S.B. No. 2400, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

The purpose of this measure is to exempt persons operating wing-in-ground craft from the application of the Hawaii Water Carrier Act.

Your Committee received testimony in support of this measure from the Hawaiʻi Technology Development Corporation; Hawaiʻi Community Development Authority; Aero X Ventures; International Brotherhood of Electrical Workers Local Union 1186; REGENT Craft; The Maritime Group; Grassroot Institute of Hawaii; Energy Justice Network; Hawaii Medical Service Association; Hawaiian Council; Kamehameha Schools; Hawaii Think Tank; and two individuals. Your Committee received testimony in opposition to this measure from North Kona Noise Action and one individual. Your Committee received comments on this measure from the Public Utilities Commission and two individuals.

Your Committee finds that wing-in-ground craft, commonly referred to as seagliders, represent an emerging zero-emission interisland transportation technology that has the potential to enhance connectivity, affordability, and sustainability across the State. Because these craft operate through a unique combination of maritime and aviation characteristics and are subject to federal oversight, subjecting wing-in-ground craft to regulation under the Hawaii Water Carrier Act may impose duplicative oversight, increase costs, and create barriers to deployment without providing additional consumer or public safety protections. By exempting certain persons operating wing-in-ground craft from the application of the Hawaii Water Carrier Act, this measure encourages innovation while maintaining appropriate federal safety oversight.

Your Committee has amended this measure by:

(1) Specifying that persons operating wing-in-ground craft engaged in the transportation of passengers shall be exempt from the application of the Hawaii Water Carrier Act;

(2) Changing the effective date to July 1, 3000, to encourage further discussion; and

(3) 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 Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2400, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2400, S.D. 1, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Transportation,

____________________________

DARIUS KILA, Chair