STAND. COM. REP. NO. 2272

Honolulu, Hawaii

RE: S.B. No. 2785

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Hawaiian Affairs, to which was referred S.B. No. 2785 entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to appropriate funds for Department of Hawaiian Home Lands projects eligible for general fund revenues that are generated by increases in transient accommodations tax collections and intended to be expended equally across projects related to natural resources, climate resilience, and destination management.

Your Committee received testimony in support of this measure from the Department of Hawaiian Home Lands and Ho'omana Pono, LLC.

Your Committee received testimony in opposition to this measure from two individuals.

Your Committee finds that the State has prioritized climate change mitigation and sustainable tourism through existing laws that fund projects related to natural resources, climate resilience, and destination management, including funds generated by increases in transient accommodations tax collections. The Department of Hawaiian Home Lands manages numerous projects that meet this criteria and lack sufficient funding. Your Committee further finds that appropriating funds for the Department of Hawaiian Home Lands to support qualifying projects will protect the interests of beneficiaries of the Hawaiian Homes Commission Act, as amended, and advance State policy.

As affirmed by the record of votes of the members of your Committee on Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2785 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Hawaiian Affairs,

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HERBERT M. RICHARDS, III, Chair