STAND. COM. REP. NO. 1804-26

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 Consumer Protection & Commerce, to which was referred S.B. No. 2400, S.D. 1, H.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 engaged in the transportation of passengers from the application of the Hawaii Water Carrier Act.

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

Your Committee finds that wing-in-ground craft are an emerging form of interisland transportation and that existing regulatory frameworks were not designed with this technology in mind. Your Committee further finds that these craft are subject to federal safety oversight and that applying the Hawaii Water Carrier Act to wing-in-ground craft may result in duplicative or ill-suited regulation without a corresponding consumer protection benefit. By clarifying the applicability of the Hawaii Water Carrier Act to wing-in-ground craft, this measure will provide regulatory certainty, support the responsible development of new transportation options, and allow the State to encourage innovation while maintaining appropriate oversight.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2400, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

SCOT Z. MATAYOSHI, Chair